Accounting tips and tricks for the accounting industry

Day-To-Day Accounting Tips For Small Businesses

Accounting is an important function in any business. The right accounting processes and practices are critical to the smooth running of any company, no matter its size. In this blog post, we are going to focus on important accounting tips that small businesses can’t afford to ignore

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Stay on top of your payments

With a small business you can keep track of your day-to-day finances by keeping an eye on your bank account. However, when you need to qualify why big purchases were made, it’s important to have accurate records of purchases and any cash that is reimbursed to employees. By keeping a close eye on your cash flow, you will never be in a position where you don’t have enough funds to cover your costs. It’s also a good practice to uphold even when your business starts to grow, and you no longer have to worry about meeting your running costs.

Invoice regularly and accurately

One of the most important accounting tips to remember is that invoicing is the lifeblood of any business. Clients will only pay when they receive an invoice. Invoices are not just payment prompts, they are also an accurate record of the work performed by your business. They are important records of your transactions and as such should always be accurate.

Check on the health of your business

Regularly scheduling profit and loss statements help to keep track of how your business is performing. They give you an overview of all the areas of your business and can indicate areas where more attention is needed or highlight under-performing sectors that could become bigger issues in the future.

Keep track of your taxes

One of the most sensible accounting tips and a common practice in the accounting industry is deducting taxes at the time of sale or when the payroll is generated. If this is not done promptly, it opens up a wider margin for error. It can also place you in the position where you are liable for a large tax lump sum at the end of the tax year, which could jeopardize your business’s cash flow.

Ensure you receive receipts

If your business contributes or makes donations to nonprofit organizations or charities, you could be eligible for a tax deduction. Ensure you receive a valid receipt for every contribution you make, otherwise you might not enjoy the tax write-off.

Consider online accounting services

If you have a small business, it may not make sense to retain the services of a full-time or even part-time accountant. One of the best accounting tips is to consider using online accounting services. All you then have to do as a business owner is log on to access all your digital accounting records. Other benefits include:

  • Time-saving: Using online accounting services frees you up to focus on more important business and financial matters, knowing that your accounting is being taken care of by a team of professionals.
  • Skilled expertise: Online accounting services give you all the expertise of having a highly skilled and knowledgeable accounting team always available, without you having to pay for it 24/7.
  • Top systems: Online accounting services give you access to the top tools in the industry. By using their services, you are essentially investing in their tools and knowledge without having the huge expense of having to buy them for yourself (or do the work yourself).
  • Extra security: Online cloud-based systems create nightly backups and keep track of your records and books, offering you completely encrypted, password-protected security.
  • Complete scalability: With online accounting, you can choose to expand or cut back your services whenever you want – ensuring you always have the financial services you need to achieve your goals.

Companies like Easier Accounting offer flexible online accounting services that businesses of all sizes can use to improve productivity and enjoy significant cost and time-saving advantages. We offer flexible plans that cover services including monthly bookkeeping, audit support, business tax preparation, annual tax planning and payroll.

For more information about the top trends affecting the business and finance world in 2017, download our guide:

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3 replies
  1. Jhon Smith
    Jhon Smith says:

    So much information and worth reading the article. I like the idea of online accounting services. Sometimes it becomes hard to manage the accounts, on the other hand, hiring an accountant will cost a lot of money. So online accounting service can be a great solution for the problem. Thanks for sharing.

    Reply
  2. Steele Honda
    Steele Honda says:

    I liked that you pointed out that if my business contributes or makes donations to nonprofit organizations or charities, I could be eligible for a tax deduction. In fact, I own a small business and I do some charity from time to time to the retirements communities. I will make sure to find out if I can get a tax deduction which will come quite handy right now.

    Reply
  3. Jeremy Thompson
    Jeremy Thompson says:

    I do agree that when it comes to accounting for small businesses having a third party to help you out with it will be very beneficial in preventing any errors in the computation. Additionally, it’s convenient and time-saving while being able to maximize the ability of a professional. If I were a business owner, I’d be sure to get myself a business accounting service to make my life easier since a mistake in accounting can be such a great headache. Thanks!

    Reply

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