, ,

Pros and Cons of Doing Your Own Accounting

accounting-tools

A cross-road most companies come to eventually is whether to do their own books or to hire a professional. This post will help you decide which route is best for your situation. Accounting mishaps can be costly, so it pays to make an informed decision.

New Call-to-action

Should you handle your accounting?

Many small business owners, especially those with an aptitude for figures and a good understanding of basic accounting practices, start out doing their business accounts. When a company has just started up, money is tight, it can make sense to prepare your accounts.

Do have the necessary accounting tools? Do you understand the different aspects of business taxes? Corporation tax is far from simple, you may not be claiming certain types of expenses that could reduce your tax bill.

Convenience, time and knowledge are the primary things that should come to mind when thinking of doing your taxes and accounting. You should have sound knowledge of your books, have the time, and it must be convenient for you. Accounting and tax preparation are very long and tedious processes.

Should you hire a pro?

Hiring a pro is a good idea you need the knowledge, accounting tools, and experience a professional accountant brings to the table.

Navigating through all the complex tax rules and regulations requires knowledge and skill most people just do not possess. A good accountant will ask you the correct questions and dig into all your finances to get and a good overall picture of how your finances.

Additionally, an accountant should be able to give you good advice on the state of your finances and might even help you better it. For some people using an accountant to save time and avoid a headache. But one thing to keep in mind is that not every accountant is a good one, and accidents have a chance of happening if you don’t pick someone with a good track record.

Be sure to keep asking your accountant questions on what he is doing to avoid any errors that he might make with your info. Remember, you are ultimately responsible for what is reported on your tax returns.

Cash Management Tips for Small Business Owners

Every business needs a steady flow of cash to keep the operations running, but sometimes cash flow is one of the biggest challenges faced by small business owners. Without cash flow management, it is impossible for your business to survive. So, it is essential that you focus on cash flow management if you want to be successful with your business efforts.

New Call-to-action

Anticipating Future Cash Flow

Instead of only looking at the current balance in your bank accounts, you need to anticipate the transactions that will be coming through so that you can prepare for the future. You might have a positive balance right now, but a big transaction to pay a vendor might drain your account. As a result, you could be facing problems with payroll or other essential aspects of managing your business.

But, if you plan in advance, then you can be sure to have enough money to cover all of the expenses that are needed. Look at the invoices that are coming in as well as the expenses that will be moving out of the account.

Implementing the Right System

One of the biggest problems that will impact cash flow is if a business owner doesn’t have a solid plan in place for their financial tracking. Sometimes it feels like “fire control,” simply trying to come up with the payments that are due right now. It might feel frustrating like you can never get ahead in your business.

Instead of simply bouncing from one payment to the next, it is better to take a proactive approach to planning for the future. The right type of accounting or bookkeeping software can make a big difference. These types of programs will help you see the current account balances, as well as future transactions that will be coming through. As a result, you will be able to make informed decisions about expenses to manage your cash flow more effectively.

Hire a Professional Accountant to Help

If you are having cash flow problems, then it is a sign that you need to bring in a professional to help! Bookkeeping or accounting services might be the best solution to help you keep up with monthly financial tracking so that you can manage your business finances more effectively.

Here at Easier Accounting, we have the experience that you need to help your business succeed. Call us today and we can help you implement the right financial system so that you can improve your business: (888) 620-0770

How to Streamline Your Business Finances

Do you look at your business finances and feel overwhelmed at the mess and the lack of organization? Without the proper financial system, it is likely that you are spending too much time trying to sort through the financial details of your company. Here are a few tips to help you streamline your business finances and put a few systems in place to reduce your stress:

New Call-to-action

Automate If Possible

Are there tasks that you are managing by hand, which can be automated with the right software? It is possible to save hours of time when you implement the right system that will automate busy work. The foundation to automation is to choose the right financial software that incorporates the functions that you need.

Cut Out the Paper

Papers pile up fast, and the filing can turn into a nightmare if you don’t stay consistent with everything. Instead of juggling piles of paper on your desk, look for options to go paperless. There are numerous benefits to paperless financial tracking, such as increasing productivity, reducing busy work in the office, and protecting the environment. With the right bookkeeping software, you can manage all of your receipts, invoices, contracts and other documents in a digital format.

Hire a Bookkeeper and Accountant

Professional help can go a long way to make it easier to manage your business finances. Consider hiring a small business bookkeeper to maintain the ongoing financial transactions and tracking details. Another option is to hire an accountant to assist with the tax filings and other financial tasks. Having a trusted team by your side can make a big difference in the success of your business! When you have a good grasp on the financial health of your company, you will be able to make the right decisions to protect the financial interests of the business.

Here at Easier Accounting, we specialize in all types of online bookkeeping and accounting services. Instead of hiring an internal employee to help with these tasks, it is much easier and cheaper for you to outsource the bookkeeping and accounting work instead.

For more information about the services that are available, contact our experienced team any time. We will gladly answer your questions and help you choose the right accounting and bookkeeping services that are needed for your business. We are experts in the industry and we would love to help with your financial needs. Contact us today for more details about how you will benefit from these services: (888) 620-0770

What to Expect from a Small Business Bookkeeper

It can be overwhelming to be a small business owner, because there are so many responsibilities and tasks that you need to keep up with. If you need help with the financial management of the company, then you should consider the benefits of hiring a small business bookkeeper.

New Call-to-action

There aren’t enough hours in the day for you to manage everything on your own, which is why it makes sense to outsource some of the busy work that you don’t have time for. A bookkeeper can improve your financial systems and help you with the management of expenses and cash flow, freeing up your time to focus on other aspects of your business.

Setting the Right Expectations

When you start working with a professional bookkeeper, it is important to set the expectations at the beginning of the work agreement. By outlining the expected tasks and work assignments, you can make sure that your employees and outsourcers all understand their individual responsibilities. Getting the right system in place ensures that everything will be handled in the right way, to avoid the problem of having important things slip between the cracks.

Maintain Good Communication

Throughout the year, it is important to check in with your bookkeeper and other outsourcers to ensure that everyone is on the same page. Are the tasks being completed as agreed? Misunderstandings can cause problems for your company, but good communication can make it possible to avoid these misunderstandings. By maintaining a good relationship, you can work together to build common goals.

Monthly Tasks for Your Bookkeeper

Your goal should be to offload as much busy work as possible to the bookkeeper. The great thing about bookkeeping services is that the workload can be adjusted depending on your needs. For example, basic bookkeeping tasks might include things such as managing accounts payable and accounts receivable transactions throughout the month. But, why not have them help with other tasks such as payroll, tax preparation, and financial reports?

Hire the Right Team

The foundation to finding success with a bookkeeper is to make sure that you find the right team to help. Doing your homework in advance will give you the peace of mind to know that your company is in good hands. Make sure they are competent and experienced with the tasks they will be helping with, to ensure that your business finances are handled in a professional way.

Do you want to learn more about accounting and bookkeeping services? Contact our team at Easier Accounting. We are here to help: (888) 620-0770

Important Financial Statistics You Need to Know Every Month

Do you know the current financial status of your business? Many business owners are missing out on crucial details and reports that can impact the success of their company. You might know information about what you sell or how you connect with your customers, but you need to ensure that you understand important details regarding the financial health of the company.

New Call-to-action

Make it a point to stay up-to-date with financial tracking, and you might even consider hiring a small business bookkeeper to help with these ongoing tasks. Also, each month make sure that you can answer these questions about the financial health of your business:

How Much Money is in the Bank?

Cash in the bank matters, because the cash flow will impact your ability to pay the bills and keep your vendors happy. Make sure that you know the amount of money in your bank, and be proactive to ensure that you have plenty of cash available to cover the bill payments when they go through. For best results, you should have a monthly budget put together so that you can compare that budget with the cash in your account.

Are You Exceeding Your Break-Even Point?

Do you understand the break-even point of your company? Compare the amount of revenue that is necessary in order to cover basic bills and overhead costs. When you know your monthly costs, then you need to make sure that your income exceeds the amount that you are paying out. By learning more about your break-even point, you can prevent the dangerous situation of burning through the reserve stash of money. Failing to break even every month means that you might find yourself in debt in order to keep the company afloat.

How Profitable is Your Company?

Don’t make the mistake of waiting until the end of the year to prepare your financial reports. Instead, it is better to examine profitability on a monthly basis, so that you always have an understanding about the financial health of your company. By waiting for quarterly, half-year, or annual reports, it is possible that you might discover a problem that is too big to rectify because too much time has passed.

As you are consistent with the financial tracking within your company, you will see that this information is very beneficial to help you prevent financial disaster. If you want your business to succeed in the future, then you need to ensure that you are taking a proactive approach to stay up-to-date with the financial statistics of the company.

For more information about ongoing accounting and bookkeeping services, contact our experienced team at Easier Accounting. We are here to help: (888) 620-0770