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Tips to Prepare for an Upcoming Audit

An audit can be a stressful time of year, especially if you haven’t been keeping up with the necessary accounting tasks within your company. Whether you are being audited by the IRS, or you have an internal audit scheduled, it is important that you are prepared in advance.

While the audit is in progress, it can increase the stress levels if you are chasing down paperwork and financial details. Instead of waiting for the audit to start, you can be prepared by gathering the information that will be needed for the auditor.

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Financial Tracking is Not a Burden

Some business owners view financial tracking tasks as a burdensome task. These things are a “necessary evil” in case an audit happens. But, the truth is that these financial management tasks are essential to help you maintain the financial health of your company. View it in a different way: instead of looking at audits as a negative experience, reframe the experience to be motivation to help you keep up with financial tracking throughout the year.

Keep Accurate Records

The most important thing that you can do throughout the year is to make sure that you are keeping accurate records of every financial transaction that comes through. Even small transactions need to be recorded because everything adds up in the long run. By managing these records all year long, it will be easy to provide the requested financial information during the time of an audit.

Regular Reconciliation

One important aspect of maintaining your financial records is to practice the habit of regular bank statement reconciliation. Check the bank statements and compare this information with the transactions in the financial system. If there are any discrepancies, then you will have the opportunity to track down the paperwork and correct the error.

Implement Effective Systems

Putting the right financial systems in place right now will save you the headache of auditing problems in the future. The best thing that you can do is work with a trusted accountant who can offer assistance to help with these efforts.

At Easier Accounting, we understand the nuances of working with small business financials. We know that it takes a lot of work to keep up with financial tracking, and our team is here to help. For more information about the services that are offered, we invite you to contact us right away. Call us today at: (888) 620-0770

Why is it Important to Categorize Expenses in Your Business?

Have you set up a business financial system to track expenses and income? When this system is put in place, it is important to be careful about the categories that you are using for business expenses. These costs are inevitable, and the right tracking system can give you full transparency about how the money is being spent.

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What are Expense Categories?

Expense categories are general topics that can be used to group transactions for tracking purposes. These expenses can range from rent and utilities to employee wages or office supplies. It might seem tedious to set up multiple categories for your company. But, a little work in advance can be very beneficial for long-term success.

Take some time to evaluate the way the money is spent, and look at the major categories of spending. Make a list of the expenses that you have a regular basis, and identify how these things can be grouped together or separated into unique categories.

If you are having a hard time identifying the right categories for your company, then you will find it beneficial to work with an experienced accountant who is familiar with best-practices. An accountant can be invaluable to help you set up the right system and manage the ongoing financial tracking for your company.

Categories Show Financial Transparency

To maximize profitability, you need to know where the money is coming from and how it is spent. Without this information, it is difficult to make effective decisions for your business.

For example, you might have a number that shows the total amount of money that was spent last month. But, you are missing a lot of information if you don’t have a breakdown of how the money was spent. It is possible that you are over-spending in certain categories, and this overspending could easily be curbed if you were informed about the spending patterns.

These categories are also beneficial to help you set up a budget and stick to it. Make sure that you are spending less than you are bringing in and review the financial reports to see if there are any areas where you can cut back spending.

At Easier Accounting, we are here to assist with your business financial needs. We know that it can be a hassle to manage the accounting tasks within a company, which is why our team offers the assistance that you are searching for. Let us take care of the financial system and tracking, so that you can focus on other responsibilities within your company. Call us today for more information about the services that are offered: (888) 620-0770

3 Tips for Preparing a Budget for Your Business

Are you missing out on potential business profits because you don’t have a budgeting system in place? Budgeting seems like a tedious task, but it is essential to stay proactive with the financials of your company. Implementing a budget and sticking to the budget can make a difference in the long-term success of the business. Here are a few tips to help you prepare a budget plan:

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Add Up Income and Expenses

How much money are you bringing in each month? This number matters because it has a direct impact on the amount of money that is available to spend. Take a look at the top-line numbers to assess all of the cash that is coming into the company.

Next, take a tally of the monthly expenses to see where the money is going. Put together a list of recurring costs as well as one-time bills that you have paid over the past few months. It is essential that you account for every penny that is spent so that you know the total expenses for the business.

Find Ways to Reduce Costs

Once you have gathered information about income and expenses, now it is time to evaluate the way the money is spent. Go through the line items to determine if the costs are necessary. Find areas where you can decrease the costs or even eliminate the bill altogether. It is also a good idea to look for ways to quickly increase revenue, which will provide more cash flow to help you pay off debts or any other balances that need to be addressed.

Put together a plan for the amount of money that you will be spending on an ongoing basis. The best thing that you can do is put this schedule together and then continue tracking your spending each month to be sure that you are sticking to the plan.

Hire a Financial Professional to Help

There are many benefits to hiring an accountant to help with your budgeting goals. It is beneficial to get an outside perspective, especially from someone with a financial background. These accounting services can be invaluable to improve the long-term results that you can achieve.

At Easier Accounting, our goal is to help your small business by improving your financial systems. We know that it is important to implement a good business budget, and we are here to help. Contact us to learn more about financial advice for small business owners, as well as the other services that are available from our company: (888) 620-0770

Overlooked Benefits of Hiring an Outsourced Accounting Team

It can be a challenge to decide if you should hire an outsourcer or employee to help with the accounting needs of your company. If you want to improve financial systems and set your company up for future success, then you need to be sure that you have the right financial professional to help.

As you compare the options, you will see that an outsourced accountant is often the best choice. These are a few of the benefits you will enjoy when you hire an outsourced team to help with accounting for your company:

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1. Working with a Team

Hiring an employee means that you will have a single individual handling your business financials. On the other hand, an outsourced accounting team can give you access to multiple accounting professionals. The combined experience is much more powerful than one person.

2. Efficiency of Workflow

Some small business owners make the mistake of trying to handle many different tasks on their own. If you are juggling different responsibilities throughout the day, then it likely means that you are wearing yourself thin. Hire an outsourcing team to handle some of the work, which in turn will allow you to improve your workflow and efficiency during the day.

3. Focused Expertise

A reputable accounting firm can offer invaluable experience, especially when they have been working with many other companies that are similar to yours. It is much better to hire a seasoned professional instead of trying to save money by bringing in a low-salary employee fresh out of college.

4. Proven Systems

There’s no reason to re-invent the wheel! An experienced accountant can make recommendations about the financial systems that should be used for your company. Investing in the right systems can make a big difference to help you have access to the best financial reports. These details will make it easier for you to make the right decisions throughout the year.

5. Scale for the Future

As a business owner, you are likely focused on the tasks that will help your company grow. To scale the company, you need to make sure that you have the right financial systems in place. An outsourced accounting team can offer the support that you need to prepare for the future.

Here at Easier Accounting, we are here to assist with the financial needs of your small business. We offer expert accounting services that can be catered to match your individual needs. Call us right away for more information about the services that are available: (888) 620-0770

Why You Need to Worry about Business Taxes in July

July isn’t tax season, so why do you need to think about your tax strategy during this time of year? It is common for business owners to make the mistake of ignoring their taxes until tax season rolls around. At that point, it is too late to change tax strategy to minimize tax burden. So, if you want to maximize cash flow and take advantage of all of the deductions that are available, then you need to be sure that you are looking at your tax strategy throughout the year.

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Tax Strategy All Year Long

The way your business is structured and the decisions that you make throughout the year can impact the amount of taxes that you will pay when it is tax season. If you want to improve your tax return, then it is essential that you are working with a small business accountant all year long.

When you understand more about your tax strategy, then you can adjust your ongoing financial decisions to be sure that they match up with your long-term goals for the company. Even small decisions can have a bigger impact long term because these small decisions can add up over time.

Leveraging Deductions that are Available

An experienced accountant will have a thorough knowledge of tax law, helping you to understand more about the types of write-offs that can be used for your company. It is inevitable that you will have ongoing expenses and costs to keep the business running, and these costs can be used as write-offs and deductions to reduce tax liability.

In some situations, it might make sense for you to invest in equipment and software at certain times. For example, your accountant might make the suggestion to purchase these items before the end of the year to increase spending a little more for this year.

The advantage of working with an experienced tax accountant is that you will have the peace of mind to know that they are familiar with the tax laws. You don’t have to waste your time learning about how tax laws impact your company. Let the professional handle these details for you, so that you can focus on the management tasks that are needed to help your business grow.

Here at Easier Accounting, we offer a wide range of accounting services to help your company. Contact our experienced team today to learn more about the services that are available. We are here to help! (888) 620-0770

Mid-Year Financial Analysis: How are You Doing So Far?

It’s hard to believe that the year is already half-way over! How has your business been doing this year? Right now is a great time to assess the progress of your company and make adjustments if needed to finish the year in a stronger financial position.

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Progress Can Help You Improve

If you aren’t tracking your results, then you won’t have any information about the progress that has been made over the year. These reports can give insight into profitability, momentum, cash flow, and more. By tracking the financial results and sales numbers within your company, you will know exactly where the business stands. Additionally, you will be in a better position to make accurate decisions based on the current health of your company.

Every business owner wants to improve the results that they are achieving, and the only way to get better results is to know where you are starting from. Keep track of the numbers over the years so that you can ensure that your company is moving in the right direction.

Changing the Focus Mid-Year

When you analyze the mid-year results, what are you going to discover? It might be good news that you are on track with growth for the year. Or, you might find that your company is growing more than you had anticipated. The third outcome is that your growth has slowed, and you are behind the projections for the year.

Regardless of the outcome of the information, this point is an opportunity for you to make adjustments and changes if they are needed. If you are experiencing higher growth than what you originally anticipated, then it is essential to be sure that the cash flow will be available to support the extra inventory that will be required.

On the other hand, slower growth might change the decisions that you are making. It is essential that you look towards the future to put together the plan that will be best suited for your company.

If you don’t have experience with accounting or financial management, then there are many advantages to hiring an accountant to assist with the reporting and financial analysis. At Easier Accounting, we have the financial experience that you are searching for. Our team will gladly help with your accounting and bookkeeping needs throughout the year. We are happy to include a mid-year financial analysis in your accounting services. Contact us today to learn about all of the services that are offered: (888) 620-0770

What Type of Accountant do you need for Your Small Business?

Starting a small business can be hard, especially if you are a first-time business owner. As you are getting started, it is essential that you consider the professional services that can make the process easier. Since you don’t have experience with finances or accounting, you will see that there are many benefits to hiring a professional accountant to help.

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Accounting Experience Matters

Instead of hiring the first accountant that comes your way, take a moment to consider the types of services that you will need. Identifying the services for your company will make it easier for you to find an accountant with the right skill set to match.

For example, a new graduate without experience working for an accounting firm might not be the best choice if you want to be aggressive with your tax strategies. Instead, it is better to hire someone who has been in the industry for a while, so that they can use their experience to help you get the best outcome for your company.

Another reason that experience matters is that of the small nuances in tax law. An accountant with experience in the small business industry will have more related knowledge than an accountant who previously worked for a large corporation. Experience matters, so it is best to find someone who knows how to help in the right way.

Bookkeeper vs. Accountant

Do you need an accountant, or would bookkeeping services be enough? It is common for a small business owner to hire a bookkeeper, only to find that they were in need of full accounting services. There are many advantages to hiring an outsourcing company that can handle both the bookkeeping and the accounting services, such as tax preparation and filing.

By keeping these services with the same outsourcer, there will be more consistency for the year. The bookkeeping maintenance during the year can help you be better prepared for tax time. You will see that there are fewer surprises with your tax filing when you have someone who is helping throughout the year.

Here at Easier Accounting, we can help with all of the financial needs of your company. We know how to help you maximize cash flow and prepare for the future, and we invite you to contact us right away. Together, we will find the best plan to provide the services that will be best for your company. Call us today for more information: (888) 620-0770

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.

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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 Be a Better Business Owner

As a business owner, you have a lot of responsibilities on your shoulders to help the company grow. Are you prepared for the future? Are you making the right decisions that are in the best interest of the company? Don’t let yourself feel the weight of some of these decisions, because there are situations when it makes sense to involve other professionals in the decision-making process.

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Common Mistake of Business Owners

If you are looking for ways to be a better business owner, then you need to consider the benefits of hiring professional contractors to help. One of the biggest mistakes by business owners is that they try to handle responsibility on their own without utilizing the help of a professional team. It is common for start-ups and small business owners to wear multiple hats throughout the day. They are trying to juggle the various tasks that are required to keep the business moving forward.

But, you don’t have to do it all on your own! In fact, it is possible that you might be hindering the growth of your company because you aren’t choosing to hire the right team to help.

How an Accounting Service will Help Your Company

When you are making important financial decisions, it is essential that you have a clear picture of the current and future financial health of the company. But, accounting mistakes can mess up the reporting and change the outlook, resulting in a situation where you are making decisions based on false information.

Most business owners don’t have professional accounting skills. They might try to handle the accounting tasks on their own, but it is likely that mistakes are made along the way. Instead of filling your day with boring accounting and bookkeeping tasks, it is better for you to focus on the other aspects of business management and let the professionals handle the finances for you.

The right team of accounting professionals will make it easier for you to manage the company in the best way. You don’t have to spend your time on bookkeeping and filing. Also, you will always have current financial information to help you make the right decisions for your company.

If you are ready to help your business grow, then right now is a great time to learn more about the accounting and bookkeeping services that are offered. For more information, call us at Easier Accounting! We specialize in accounting services for small businesses, and we are here to help: (888) 620-0770

Accounting and Bookkeeping Services for Home Based Businesses

If you run a home based business, then it is likely that you are wearing many hats throughout the day: manager, customer service representative, bookkeeper, and more. It takes a lot of work to get a start-up off the ground, and many people are looking for ways to cut costs and maximize financial accounts.

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Even though you are trying to minimize costs, there are some benefits to hiring outsourcing services for certain tasks. As a business owner, you need to make sure that you are focusing on your strengths instead of wasting your time on tasks that can be easily outsourced.

Benefits of an Accountant

Most small business owners don’t have experience in accounting or bookkeeping. As a result, these types of tasks take quite a bit of time and cause a lot of frustration throughout the week. Additionally, it is common for small business owners to make mistakes with their financial records, simply because they don’t have the knowledge or experience to know how to manage the books.

Instead of feeling stressed over the financial records, it is much better to have an accountant handle these tasks. You can focus on other responsibilities within your company and pay a small fee for the services of a bookkeeper or accountant.

The experience of an accountant can be very beneficial to help your small business grow. An accountant will offer suggestions to maximize cash flow and minimize expenses. As a result, the profitability of the company can be maximized.

Leveraging Home Based Business Write-Offs

When you are running your small business from home, there are certain write-offs that can be used to minimize tax burden. If you want to leverage the maximum amount of write-offs, then you need to be sure that you are working with an experienced accountant for tax preparation each year.

An accountant can assist with annual tax filings, as well as quarterly tax payments, employee taxes, and more. These services can be catered to match the needs of your company. Your accountant can help you put together the best plans to help your business succeed.

Are you ready to learn more about how these accounting services can be beneficial for your business? Call our experienced team at Easier Accounting for more information! We offer accounting services to small businesses, and we know what works best for home based businesses. Contact us by calling: (888) 620-0770