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:


The Future Of Accounting As A Profession

The accounting profession is evolving rapidly. Accountants today have skills and resources that accountants three to five years ago only dreamed of. With technology and software solutions evolving so rapidly, the future of accounting may be very different from the reality we see today. In this blog post, we are going to explore what the accounting industry will look like in a few years time.

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Cloud accounting is the future of accounting

The cloud offers the accounting industry a new way of doing business. No longer are accountants desk-bound, reliant on on-site software, data, and solutions. Instead, all application functions are performed off-site and businesses are no longer responsible for installing and updating their software. New research carried out by Harvard Business Review Analytic Services reported that 74% of businesses feel like cloud computing has given them a competitive advantage allowing them to “capitalize on opportunities more quickly than competitors” Cloud accounting offers accountants significant advantages including:

  • On-demand service: Financial reporting can now take place in real time, allowing accountants to immediately respond to clients’ demands and requests.
  • Increased collaboration: Cloud technology has enhanced collaboration between accountants and their clients in ways that were previously unheard of. Not only can accountants access, edit and share documents anytime, from anywhere, but cloud-based workflow and file sharing apps allow them to make updates in real-time, giving everyone full visibility of their collaborations.

The growth of business advisory services

Clients are demanding more from their accountants. Gone are the days when accountants simply update ledgers and submit tax returns. Now accountants are expected to offer business advisory services. The aim of these services is to position accountants as trusted advisers and help grow stronger professional relationships with their clients. These types of services can range from forecasting services to financial management services to succession planning services and are where the future of accounting lies.

The need for a mixture of skills

The clients of today are millennial customers. Millennials make up the biggest buying force in the world and have $200 billion in annual buying power in the US alone. Millennials want to be part of conversations with businesses and 53% of them believe companies should offer more ways to share their opinions online in the future. They spend an average of 25 hours per week online and they’re looking for content-driven media from websites to blogs to social media. As the marketplace becomes more competitive, accountants need to differentiate themselves and provide compelling content to attract and engage millennial customers. Forward thinking accounting companies are embracing inbound market skills in order to do this and turning to social media and the online space to generate greater business exposure.

Using technology to attract the younger generation

In order to attract the younger generation of professionals, accountants need to embrace the latest mobile technology and software solutions. The future of the accounting industry is mobile and accounting firms need to accommodate this if they want to move with the times and embrace the growing trend of off-site working. Mobile accounting solutions give accountants the freedom to work away from the office and respond to client requests immediately. Instantly available real-time data guarantees accurate financial reporting and ensures multi-company transactions take place more efficiently.

Accounting firms that use the latest technology solutions will not only attract a forward-thinking workforce but will also attract customers who are equally drawn to the efficiencies that mobile technology brings. Accounting firms that have their own firm-branded app will attract mobile smartphone users who will make up 80% of the world’s population by 2021. People are already spending 86% of mobile time on mobile apps and this is only expected to increase going forward. Banks are already embracing this trend and seeing a “dramatic increase” in the number of people using mobile apps to do their banking and fewer people using the computer or coming into branches.

Companies like Easier Accounting are already tapping into the future of accounting and putting the very latest business trends and accounting solutions into practice. The result is a range of flexible online accounting services that help businesses improve productivity and enjoy significant cost and time-saving advantages.

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


Accounting Trends: The Shift From Ledgers To Business Insights

The accounting industry is evolving rapidly in response to advances in both technology and software. Tools like ledgers and Microsoft Excel are making way for accounting solutions that are streamlining business processes and improving efficiency. This blog post will outline the latest accounting trends that are changing the accounting industry in 2017. Read more

The Influence Of Technology On The Accounting Industry

Technology has come to define the modern accounting industry. Pens, paper, and calculators are still around, but accountants no longer rely on them to balance ledgers or do reports. Instead, they use rapidly evolving accounting technology. This blog post will focus on how this technology has changed the accounting industry.

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Financial Accounting Basics In The Digital World

Digital technology has completely revolutionised the way we communicate, purchase products and do our work. The accounting and finance world are not immune to this change and forward-thinking accounting companies are adopting the latest digital technology and solutions to streamline their businesses and offer their customers more. Read more

4 Ways the Accounting Industry is Transforming

Digital information is transforming the way businesses are managed, making it easier than ever to move forward in an innovative way. As you are shaping the future of your company, are you proactively using the tools that are available?

Many businesses aren’t leveraging the full benefits of a modern accounting system. Here are a few ways the accounting industry is transforming to serve your company better:

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Outsource Accounting Skills

There is no need to hire an in-house financial professional because outsourced accounting gives you the opportunity to access these services at a cheaper cost. When you hire an outsourced accountant, you don’t have to worry about employee management or the cost of bringing another individual into your office space. Additionally, there is no need to worry about face-to-face meetings. An outsourced accountant can set up a phone call or video meeting so that you can manage your company from anywhere in the world.

More than Basic Number Crunching

When you hire an accounting team to help with your small business, you will get access to more than just basic number crunching. In the past, financial services have focused on the busy work, leaving the difficult financial decisions up to the business owner. While you always have the final word on any business decisions that are made, you can benefit by asking for financial advice from your accountant. This information can be invaluable to help you make the best decisions for the future success of your company.

Value Based Pricing

For a long time, business pricing and financial decisions were made based on the numbers. It was a race to the bottom to bring in customers based on the lowest price offered for products and services. Now, you can look at value-based pricing with your financial team, helping you to find the “sweet spot” where you can maximize your profits as much as possible.

Keeping Up with the Trends

As a business owner, you don’t need to waste your time trying to keep up with the changes in tax laws or other trends in the financial industry. Instead, you can work with a professional who will keep your company relevant. By hiring an experienced accounting team, you can rest assured to know that you are accessing excellent experience as well as innovative ideas that will evolve as the world changes.

At Easier Accounting, our goal is to provide the best outsourced accounting services that are available. Contact us to learn how we can boost your business by implementing the latest trends in the accounting industry: (888) 620-0770