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10 Business Tax Deductions You Should Be Leveraging

Tax Day is still a few months away, but you shouldn’t wait until it’s time to file your taxes before thinking about the deductions that can be used for your business. Are you leveraging the business expenses correctly to take advantage of the available write-offs? One of the benefits of having a small business is that you can deduct certain expenses that are necessary for your business efforts. It can be hard to keep up with all these transactions, which is why you might consider leveraging the services of an outsourced accountant for assistance.

How Tax Deductions Work

A tax deduction, also commonly known as a business write-off, is particularly useful for small business owners and anyone self-employed. Whether you have a small side-gig at home or you are working full-time on a start-up, you can manage your tax burden by deducting expenses that are spent on business costs. Even if you are a W-2 worker and earn income from an employer, you can still write off any expenses related to business efforts outside of your employment.

This process lowers the income on paper, showing a reduced taxable income when it is time to file your taxes. As a simple example, if you collect $100,000 in a given year through the business, but you spent $20,000 on business expenses, then your taxable income for the year would be $80,000.

The IRS has a detailed tax code, which includes allowances for small business owners and self-employed workers to write-off business costs. If you are spending money that is required for your business, then it can likely be listed as a write-off. The best way to ensure that you are following the rules is by hiring an experienced tax accountant for tax preparation and filing. For example, an outsourced accountant will help you in determining the expenses that qualify as tax deductions. The goal is to maximize the write-offs as much as possible, while staying within the guidelines set by the IRS.

IRS Guidelines for Business Write-Offs

The IRS allows deductions for anything that can be categorized as a “reasonable business expense.” A few specific guidelines are in place to help you determine if your expense can qualify as a deduction:

  • The cost is related to your business directly
  • The expense is necessary and ordinary
  • The amount spent is reasonable

Examples of Tax Deductions for Your Business

Here are some of the most common tax deductions that are used by small business owners:

  1. Health Insurance Premium: Most people who are self-employed need to pay for private health insurance. Since you don’t have an employer to provide health care support, you can write off a portion of your insurance premiums.
  2. Vehicle Mileage: Track your miles throughout the year because a per-mile deduction can be used on your taxes. These driving miles need to be related to your business. For example, if you drive to the bank or you are driving to meet a client, then those miles can be included on your log for the year. Your commute to and from work does not count as deductible mileage.
  3. Home Office: Do you work from home? A portion of your rent/mortgage, utilities, and more can be written off as tax deductions. It is important that you have a dedicated space for business activities. Additionally, it needs to be the primary place where your business is operated. Then, this square footage can be calculated based on the overall size of your home and the associated monthly expenses.
  4. Professional Fees: Hiring an accountant or lawyer for assistance with your business can be a tax write-off. Any legal or professional fees that are paid for business purposes fall into this category. For example, if you hire an accountant to assist with tax preparation, then the cost of the accounting services can be included in your list of expenses for the year.
  5. Retirement Savings: Self-employment tax deductions can be used if you contribute money into a retirement savings account. The numbers vary from year to year, so the best solution is to work with your accountant and a financial advisor to determine the amount that can be deducted. Your financial team can also provide guidance regarding the most effective way to invest this money. Options include 401(k)s and IRAs.
  6. Startup Costs: Getting a business off the ground can be expensive. Not only are you putting money into product development, hiring employees, and office supplies, but the marketing and initial costs can add up over time. Keep track of all of these expenses so you can use them as tax write-offs.
  7. Bad Debt: Do you have uncollected money from customers? When accounts receivable turns into bad business debt, then it can be used as a tax deduction. In this situation, you need to have documentation proving that you took reasonable steps to collect on the invoice.
  8. Travel and Food: When you are taking a business-related trip, keep track of the expenses incurred for airline tickets, car rental, taxis, hotel fees, and more. You can’t write off personal vacations that aren’t related to business. But there are times when you can travel for business to leverage the write-offs, while still having a bit of time for entertainment or personal activities.
  9. Charitable Donations: Donating to a charity of your choice is a great way to feel good about giving back to the community. Additionally, these donations can be used as tax deductions as well. The rules change depending on the type of donation, the recipient, and the amount that is donated, so talk to your accountant for more information.
  10. Continuing Education: Most business owners need to continue learning to stay relevant in the industry. If you pay for work-related education, then those costs can be used as tax deductions. Examples include tuition, lab fees, books, supplies, transportation to the classes, and any other expenses related to your participation in the classes. For these expenses to qualify, the classes need to “maintain or improve skills needed in your present work.”

Tips to Maximize Your Tax Write-Offs

As you can see, there are many ways you can increase your tax deductions each year. But it takes work and organization to ensure that you are taking the write-offs your business is entitled to. Taking as many deductions as possible can help to lower your taxable income, which in turn reduces the amount that you will be paying in taxes each year.

Are you leveraging the write-offs for your business? Here are a few tips to follow so that you get the best results possible with your tax deductions:

  • Good Bookkeeping System: It is essential that you are keeping track of all of your business costs. In order to utilize the deductions, you need to know where the money is going. Use a bookkeeping and accounting system to record every transaction that moves through your bank accounts and credit cards. You need to have specific details about the amount of money that was spent, how it was spent, as well as documentation to back up the spending. The IRS won’t accept estimates, and you might need to verify the write-offs if you are audited in the future.
  • Check the Requirements: Talk to your accountant about specific requirements that need to be met for the deductions. For example, you should keep copies of the receipts when purchases are made. You can file these paper copies in a folder for each year. Or, consider a digital system with scans or photographs of the receipts for easy reference. Other requirements include logs or tracking information, such as a mileage log that records the odometer, purpose of the driving, and the number of miles traveled. This documentation does not need to be filed with your tax return, but you need to have it available in case there are questions about your filings in the future.
  • Simplify and Outsource: You can spend your time filing receipts and recording the transactions, but these busy-work activities are a waste of time when you can hire an outsourced accounting team to help. As a busy business owner, you shouldn’t be spending your limited hours on tasks that can be handed off to the experts. Instead, focus on your strengths and skills, and let the pros handle the number crunching and reporting for you. Outsourced bookkeeping and accounting allow you to focus on your business without getting behind on the never-ending paperwork and admin tasks.

When it is time to file your tax return, your accountant will help you claim the write-offs in the correct Schedule C section of your 1040. As this information is compiled, make sure you have open communication with your accountant regarding the rules around the deductions you are planning to take. An experienced tax accountant can provide valuable advice to help you avoid problems with the IRS in the future.

Easier Accounting is Here to Help

Are you ready to maximize your tax deductions for your upcoming tax filing? Our team at Easier Accounting is here to assist. Not only can we help with your current tax prep, but we can also create a system to ensure that you aren’t overlooking important deductions in the future. Call to learn more about available accounting services: (888) 620-0770.

New Year’s Resolutions that Will Level Up Business Results in 2020

January is a time when people are focused on new beginnings. Not only are we starting a New Year, but the beginning of 2020 is a new decade as well. Now that the holidays are over, many turn their attention to weight loss goals, home organization, budgeting, and more. What are your New Year’s resolutions for this year? As you are evaluating your personal goals, it is a great time also to consider what you should be doing to improve your business in the new year.

As an entrepreneur or small business owner, you are likely a goal-oriented person. So, setting resolutions is probably a familiar and common practice for you. As you are choosing your goals for 2020, consider the activities that will leverage your business results as much as possible. Not only do you need to consider how you can improve your profits and manage spending, but it’s also important that you identify specific areas of your business where you need better systems to support growth in the future.

Here are a few resolutions you might consider for your small business this year:

Resolution #1: Delegate and Outsource More

There’s no question that running a small business can be a time-demanding task. Many business owners feel like their attention is spread thin as they are trying to keep up with all of the responsibilities. Not only do you need to be working on product development, but other necessary tasks include marketing, customer support, employee management, taxes and accounting, invoicing, cash flow management, and more.

How often do you feel overwhelmed because you have a never-ending to-do list? If you feel like you can’t keep up, then it’s a sign that you need to invest in better support. There’s no reason why you should be flying solo on everything. A variety of resources and service providers can be valuable assets to improve your systems and give you more flexibility with time.

Make a list of the tasks that you have a hard time accomplishing, either due to time constraints or skill set. Then, identify the services that can be used to take care of these tasks. Hiring the right outsourcing team or service provider can be a valuable way to reduce your stress, optimize your results, and ensure that you aren’t spreading yourself too thin.

You might choose to hire one provider to start, such as an outsourced accounting team, so you don’t have to work on financial reports, payroll, and invoicing. Or, select a few specific providers so you can build a team that is a perfect fit for your individual needs.

Resolution #2: Optimize Business Promotion

Marketing your business is something that can’t be run on autopilot. Even if you find something that is working to bring in new customers, there are often opportunities to tweak the campaign so you can increase the number of sales while managing your costs at the same time.

The start of a New Year is a great time to evaluate the effectiveness of your marketing campaign. Did you have a positive Return on Investment (ROI) from your marketing spend in 2019? What were the most profitable campaigns?

This exercise can help you identify areas of opportunity where you should be focusing your marketing budget. Then, you can use this information to identify specific ways to adjust your efforts in 2020. Consider these details as you are choosing marketing-specific goals for the year.

Resolution #3: Weekly Business Planning

It’s easy to let the weeks pass by without deliberately evaluating how you should be growing your business. But, if you want the company to grow, then you need to be proactively engaged in this planning process. Business planning gives you a formal structure to evaluate the current success of your company and identify areas that need more support.

Start each week with a focus on what is working and what didn’t work. Then, you can set new directions for the week. This week-by-week process might seem small in the moment, but the cumulative effect of 52 planning sessions will make a big difference over the course of the year. Rather than waiting to evaluate your business success at the end of the year, implement a system that uses weekly reviews.

This process creates the structure that you need so you are always reviewing, evaluating, and adjusting for the future. Additionally, it is an effective way to identify expensive mistakes as early as possible, keeping you on track with the things that matter most of your company.

Resolution #4: Business Relationships

Building strong business relationships can be a powerful way to support your company. For example, look for networking groups where you can talk to other business people. These conversations can spark new ideas and help you look outside of the box in the systems you are creating. You might be able to find a local group that is dedicated to your specific industry or type of business. Or, if you don’t have local networking groups, then look for online groups and forums where business discussions are held.

Also, consider how other business relationships can be developed, such as communication with your vendors, marketing team, accountant, and more. Building trust with these providers is essential to ensuring that the services are the right fit for the needs of your business. Plus, two-way communication will help in determining the effectiveness of the current plan and the ongoing results that are received.

Resolution #5: Let Go of What’s Not Working

Just because you’ve had the same systems or practices in place for years, doesn’t necessarily mean that those things are still serving the needs of your business. Now is the time to consider what is working and what needs to be improved. The New Year is a great opportunity to let go of the things that are no longer serving your company.

Evaluate various aspects of your business to identify the things that you need to let go of. For example, it might not be worth the continued development and marketing of certain products that aren’t selling well. Instead of trying to make these products work, it’s best to let them go and dedicate those funds and efforts to the items that are performing great in the marketplace.

Look for anything that is making your work life harder, and let go of the old mindset that is keeping you stuck in that place. If the relationship with a vendor isn’t going well, then identify other options in the industry and be willing to let go of that old vender. If a technique isn’t supporting the overall goals of your company, then stop using it. You shouldn’t be investing time or money to try to make something work when there are more efficient and effective methods that can be implemented instead.

Resolution #6: Prioritize Self Care

One common trend among business owners is that their personal self-care often falls to the backburner. When you are juggling business priorities, it’s easy to let these tasks cut into your sleeping habits, hobbies, family time, and more. Consider setting a resolution this year to prioritize self-care, which will give you the opportunity to create more work-life balance.

Don’t underestimate the power that selfcare can bring to your business efforts. When you are healthy and have a strong, clear mind, then you will show up more effectively in your business tasks. It’s easy to rationalize and argue that your personal care doesn’t matter in business results. But, the truth is that developing your mind is one of the most effective ways that you can build a solid foundation to ensure that you are focusing on the right things within your company.

Selfcare looks different for every person. As you are structuring a system for your personal care habits, consider small, daily tasks that will support your physical health (diet, exercise, sleep, etc.), mental health (personal development, reading, etc.), and mental health (relaxation, meditation, etc.). Experiment to find the system that works best for you. Then, prioritize these tasks in the morning before you dive into work tasks for the day.

Resolution #7: Improve Financial Systems

Accounting and financial tracking are key to creating a strong foundation for your business. Do you have an effective accounting system, or are you scraping by with a DIY process? Without a good system, you are likely missing out because of gaps or holes in the tracking and recording processes.

Without accurate financial reports, every other aspect of your business will suffer. If you want to build a stronger foundation for your company, then now is the time to invest in better accounting systems. The most effective way to get started is by hiring an outsourced accounting team. Not only will a provider give you proven techniques that can be implemented in your business efforts. But these outsourced accounting services are also helpful to free up your schedule since you don’t have to spend your limited time on bookkeeping tasks.

Easier Accounting is here to help. For more information about how you can improve your accounting system this year, call us: (888) 620-0770.

9 Year-End Tips for Small Businesses

December is here, which means that the end of the year is just a few weeks away. Depending on your industry, it might be the busiest or slowest time of year for your business. Those companies in the retail space are often busy keeping up with customer demands as families are shopping for gifts to put under the tree. On the other hand, some service providers slow down during this last month, giving them a lull to enjoy the holiday season.

Regardless of your workload this month, don’t overlook the importance of preparing your business for the essential year-end tasks that need to be addressed. Most businesses are run based on the calendar year, which means that there are a few details you will need to wrap up to bring the year to a close.

It’s hard to keep track of all of the required paperwork and year-end tasks that need to be addressed. Today, we are going to share some tips to help you get started. One of the best solutions is to talk to an accountant about your situation to get personalized tips based on the unique aspects of your company.

Here are a few year-end tips you might consider adding to your to-do list:

Tip #1: Review Annual Reports

Even though the year hasn’t come to a close yet, these reports can give insight into how things went for your business in 2019. If you were consistent about keeping up with accounting and bookkeeping tasks throughout the year, then it is simple to run a report and get a snapshot of your standing for the year.

Not only will this information provide insight as you are going into the New Year, but it can also help you see if your books are accurate and up-to-date. Having an accountant can be helpful as you are running these reports and analyzing the data.

Tip #2: Set Goals for 2020

Now that you’ve had a chance to look at the numbers, December is the perfect opportunity to evaluate how you are going to improve your success in 2020. It is common for individuals to set New Year’s goals for weight loss or habits they want to develop. In the same way, you should look for potential areas of improvement within your company.

Your accounting reports will show where your business came up short. These weak points could be where you choose to place your focus for the annual goals in 2020. Additionally, look at the things that were working well in 2019. It’s smart to put more resources into the things that were already working so you can maximize the proven systems.

For example, if you can see that most of your new business came through customer referrals, then it might make sense to budget more of your market money to reach out and build stronger relationships with your current customers. Determine your ROI on these investments to find the optimal ways that you can help your business move forward.

Tip #3: Income Deferment

Every penny you receive by December 31st counts as income for 2019. If you have payments that are delayed into January, then that money will be counted as income in 2020. Depending on your earnings this year, it could make sense to push some of those payments into the New Year so that you can manage tax brackets and other factors that affect your tax burden.

Various factors should influence your tax bill, and it isn’t always the right choice to delay payments for tax purposes. If you are considering this strategy, talk to an accountant about your options and how income deferment will play a role in the amount that needs to be paid in taxes. Additionally, be ready to have conversations with customers about their payment timelines if you need to delay the income a bit.

Tip #4: Charity Donations

It’s no surprise that the holiday season is a time of year when people tend to be more charitable with their donations. If you are looking for ways to help other people during this time of year, then it might be a good time to reach out to your favorite charity or donation center.

Yes, it’s a kind thing to help others during the holidays. At the same time, there is also something in it for your business: this money can be used as a deduction on your taxes. You can donate money if that is your preferred donation of choice. Or, you can donate other goods, such as toys and clothing, with the deduction based on the fair market value of those items. Make sure to get a receipt for the items that were donated.

Tip #5: Retirement Contributions

Whether you already have a retirement plan, or you are considering your options to set up a new account, certain retirement strategies can help manage your taxable income each year. This account should be set up by December 31, although certain strategies will allow you to make 2019 deposits up until the tax deadline in April 2020.

Don’t overlook the benefits that come from maximizing your contributions. With the right type of account and a smart retirement strategy, this money can be added to the retirement plan tax-free. Talk to your accountant, as well as a financial advisor, for more information about the strategy that is a good fit for your needs.

Tip #6: Save for Upcoming Tax Payments

It is easy to procrastinate your tax preparation for the year. But, the sooner you know how the numbers are going to play out, the better prepared you will be to make the payments that will be required. When tax payments are due, it can cause cash flow challenges for many small businesses.  Even though you know that taxes roll around every year, it’s easy to forget about the necessary money until the last moment.

Dedicate time right now to ensure that you have the cash flow available for the money you are going to need for your payments. Not only do you have the annual balances that need to be paid, but you should also consider the quarterly payments due in January and April. Set aside the estimated amount of cash that will be needed so you won’t be stress about the cash flow when the payment time rolls around in April.

Tip #7: Year-End Purchases

Another tax strategy that might be considered is getting in a few big purchases before the year is over. Not only can you find great holiday prices on furniture, electronics, and office equipment, but this spending might be needed to boost your write-offs for the yar.

Don’t spend money for the sake of spending money. Instead, be strategic with your approach. If you have equipment that needs to be upgraded or office supplies that need to be restocked, then it might be a good strategy to purchase these items no later than December 31.

Tip #8: Inventory Evaluation

Two factors need to be considered for your inventory. First, if your inventory has experienced a drop in market value, then you might be able to claim the difference as a deduction on your taxes. This strategy varies depending on the type of inventory that you carry and the current/previous value of the items.

Also, consider the amount of inventory that is currently in stock, compared to what will be needed in the New Year. For example, if you are in the retail industry, then you might need to restock the shelves because of the increased sales during the holiday season. But it is common that you won’t require as much inventory in January and February since these months tend to be times when customers spend less.

On the other hand, if your business specializes in health products or weight loss services, then January might be your busiest time of year. People are motivated to maintain their goals in the New Year, which means that customers are often ready to spend money on products and services. Make sure that your inventory shelves are stocked, so you are prepared to maximize the profits as the sales start rolling in.

Tip #9: Line Up Bookkeeping and Accounting Services

Do you already have a good accounting and bookkeeping service you are using to help your small business? If you aren’t leveraging these services, then right now is an optimal time to get started. An accountant can offer year-end advice to help with your strategy as you are wrapping up in 2019. At the same time, you can leverage these services into the New Year to ensure that you are prepared for the things that are coming in 2020.

The start of a calendar year can be an ideal time to make this transition. For example, if you need to implement a new accounting software program, then it can be simple to make a move at the beginning of the year. Even though these changes can be implemented at any time, it can simplify the process when you have a clean break with a new month or year starting on the calendar.

If you need assistance with accounting and bookkeeping, then you are invited to contact us at Easier Accounting. We specialize in small business accounting services. Call today: (888) 620-0770.

Small Business Accounting: How to Choose a Service Provider

One of the most important steps a business owner can take is hiring a pro to help with small business accounting. Not only will you have confidence knowing that your records are up-to-date at all times, but it is important to tap into the financial strategy available from someone who has industry experience.

Don’t Wait for Small Business Accounting

If you don’t already have a small business accountant to help with your financial records, why wait? Sometimes people make excuses about the cost of the accounting services. Even though you will need to add another expense to your business records, it is well worth the investment when you see how much money can be saved.

Here are a few reasons why you should consider small business accounting services as soon as possible:

  • Ongoing Tax Strategy: Your accountant can provide tax support throughout the year to ensure you are on track for the upcoming annual tax filing. Business taxes are more than crunching a few numbers before April 15th. You need to be strategic with your spending, business entity, and overall financial strategy if you want to minimize your tax burden. Since taxes are necessary for every business owner, it makes sense to enlist a tax specialist as soon as possible so you can minimize the impact on your bottom line.
  • Free Up Your Time: It is common for business owners to find it hard to step away from their offices. You are wearing many hats during the day to keep your company running. All of these responsibilities are important, but it can be burdensome to keep up with everything. If you are still managing your books, then it is time to hand the bookkeeping and accounting responsibilities over to a pro. Hiring the right accounting team will free up your time so you can turn your attention to other requirements within your company.
  • Optimize Profits: Owning a business can bring personal fulfillment, but the ultimate goal is to bring in a profit. You wouldn’t be running the company if you can’t take a paycheck home! Yes, there are times when you need to be careful with your spending, especially in the start-up stages of owning a business. With time, the right financial strategy can help you increase your profit margins so you can enjoy the full benefits of being a business owner.

Options for Accounting Services

Many business owners don’t know much about the accounting industry, which can make it overwhelming to hire a service provider. Not only do you need to know the difference in the various financial specialties that are available, but you also need to consider the specific services that are offered for your business.

Some of the most common accounting services offered for small businesses include:

  • Bookkeeping: These services focus on the ongoing financial tracking to ensure your records are up to date. Software programs can be used to automate banking transactions; then, the bookkeeper keeps track of the transactions to identify potential issues or errors that might need to be addressed.
  • Taxes: Hiring a tax accountant can be beneficial when you need to file paperwork for the IRS. The topic of tax accounting is huge since the forms vary depending on the way your business is structured. As a business owner, you don’t need to worry about tax laws and rules. Instead, let your CPA do the tax accounting. This service often includes both paperwork preparation and strategy that can be used to reduce your tax liabilities each year.
  • Strategic Services: As your business grows, it can be helping to have a financial expert who offers advice about management accounting. These services are focused on the financial data within your company, helping to create a long-term strategy that will ensure sustainable growth. These services can be expensive, but are worth the investment to ensure you are prepared for the future.

What are the Unique Needs of Your Company?

Before hiring a small business accounting expert, it can be helpful to determine which services will be a good fit for your needs. What are your business goals? Where are you falling short when it comes to your financial systems? You might not have specific answers to these questions until you have a conversation with an accountant.

Keep in mind that an experienced accountant can help you avoid common problems that arise with business growth. You don’t have hands-on experience with these aspects of business management, which means there are pitfalls that might be encountered without someone who can help you avoid these issues.

Talk to your accountant about your priorities and goals for the business. Then, ask about the best accounting services to fit your needs. Also, open the conversation to learn more about accounting services that might fill in the gaps for issues that you could potentially be overlooking.

Characteristics of a Great Small Business Accountant

We live in a digital business world, which means that you aren’t limited to hiring an accountant who is close to home. You can look online to find service providers, but it can be a challenge to choose from the many accounting firms located across the United States.

As you are researching your options, here are a few things that will help you choose the right small business accounting service:

  • Experience: For optimal results, it is beneficial to work with an accountant who has been in the industry for years. While book-smarts can be useful, nothing beats the skills that come from the day-in-day-out application. Find an accounting team that offers specialized services focused specifically on small business accounting.
  • Professionalism: Customer service matters because you need to be sure that your accountant will respond when you need to have a conversation. Not only does professionalism indicate the service you will receive, but you also feel good knowing that they will be detail-oriented with your tax return and ongoing services. Consider the interactions you have with the company to get a feel for the level of professionalism you can expect.
  • Credentials: In the United States, specific education and certification requirements need to be met before someone can offer accounting services. Just because someone knows how to use Quickbooks doesn’t mean that they are qualified to offer small business accounting advice. It is smart to check your accountant’s credentials before selecting their services.
  • Recommendations: Consider the option to talk to business contacts for accountant recommendations. Conversations with other business owners can help you find a trusted provider.
  • Accounting Team: While you can get the required services from a single accountant, there are bigger benefits that come from hiring an accounting team. You always have access to talk to someone for accounting advice, even when your point of contact is out of the office. Plus, an accounting team means that you are tapping into the experience and specialized skill sets of various industry pros, which can help to optimize the overall results that are achieved.
  • Cost: Small business accounting services are an investment. While it is worth the cost to bring in a team of experts to help with your business finances, make sure that you aren’t overpaying for the services. Compare the costs of the available services with other providers. Make sure that you are making similar comparisons – for example, the rate should reflect the same scope of provided services from each accounting team.
  • Software: One of the most effective ways to design your accounting system is by using a software program that can automate various aspects. For example, the software can pull in bank account transactions and other financial information. Then, your accountant can reconcile the numbers and use this information to help your business as needed. Ask your small business accountant about their recommendations for software programs.
  • Ongoing Services: Ask questions about the frequency of reporting, how often you will be in contact, and what the ongoing services will entail. Setting this expectation in the beginning will ensure that your needs are met throughout the year.

You can research various accounting firms to find potential providers, but don’t overlook the importance of finding a provider that has the right personality to match your preferences. Personality fit matters, especially when you will be working with the person throughout the year. You need to be sure that you get along with the accountant so that you are comfortable talking to them about your questions and needs.

Easier Accounting Offers Quality Business Services

We are dedicated to providing high-quality services for small business owners and entrepreneurs. Our team offers years of experience in the accounting industry and a proven system that works. When you choose our team for accounting services, you can have the peace of mind to know that you are working with a group that cares about your success.

Customer satisfaction is a high priority for us, which is why we are happy to customize your services based on your individual needs. If you have questions about available services, then you are welcome to contact us at any time. Reach out to have a conversation with us at Easier Accounting: (888) 620-0770.

Business Owners: Avoid These Common Cash Pitfalls

Cash flow matters at all stages of business ownership. Whether you are trying to get a new business venture off the ground, or you’ve been in business for years, it is common to rush into cash pitfalls that can drain your bank account. But these problems can be avoided if you are proactive with your financial system.

A good accounting and bookkeeping team, such as Easier Accounting, can offer the ongoing cash flow support that you need throughout the year. Our team has worked with many small businesses, and we’ve seen the trends that often happen within growing companies. This experience gives us the insight to help our clients sidestep some of the common issues that impact cash flow.

Why Cash Flow Matters

It seems obvious that you need money on the bank to keep your business running. But there are times when you know that the money will be coming through receivables, so it might seem like a good idea to tap into credit if you have immediate expenses that need to be covered. This short-term strategy can lead to a domino-effect of financial issues in the future, especially if you don’t have a good bookkeeping and accounting system in place.

Not only do you need to be looking at the money that comes into your business when customers buy your products and services, but you also need to be looking ahead to the future to see how much money needs to be spent on expenses. For example, a big tax bill can sneak up on you if you aren’t tracking the flow of money, causing you to be cash-poor and unable to keep up with the costs of running your business.

When the bills need to be paid, and you don’t have any money in the bank, the cash flow issues could potentially result in business failure. Rent needs to be covered, employee paychecks need to be paid, inventory needs to be restocked, and you have a long list of other expenses that are required to keep your company running. Make sure that you have enough cash in the bank to cover these expenses each month.

Common Cash Pitfalls

Learning about common cash pitfalls can be an effective way to bring awareness to your business practices, helping you avoid these issues. You can learn from the mistakes of other business owners so that you don’t have to walk the same difficult path of cashflow problems.

Our team at Easier Accounting is here to guide your financial decisions and help you avoid some of the problems that we’ve seen over the years. Here are some of the most common cash pitfalls that we’ve encountered:

  • DIY Accounting: When a business owner chooses a DIY approach for accounting and bookkeeping, they are usually motivated to save the money that would have been spent on accounting services. The truth is that taking on these financial responsibilities might be one of the costliest mistakes you can make as a business owner. Not only are important financial details often overlooked with DIY accounting, but you don’t have the experience to dig into the financial statements and see what is coming in the future. You need clear insights for your expenses and income so you can optimize your business practices, which in turn will help to boost your profit margins.
  • Using the Right Tools: Excel can be a great tool for many projects within your company, but you are making a huge mistake if you are still using a spreadsheet to track your income and expenses. It is important that you have a robust accounting software that can generate reports and help you see a clear picture of your business profits and losses. The right accounting software will help you avoid mistakes that often come when the numbers are calculated manually.
  • Training and Application of Accounting Software: Not only do you need to be using the right accounting software to match the needs of your company, but it is also important to be sure that your team is trained on the most effective strategies for the use of this software. The simplest way to be sure that you are leveraging the full power of a financial software is to hire an experienced accounting team to assist with the setup and ongoing maintenance of your system.
  • Overlooking Accounts Receivables: Having unpaid invoices for current sales can inflate your numbers, but don’t count on the income until you have money in the bank. Too often, small business owners have a gap in their accounts receivables system. Make sure you have a strategy in place to follow-up on outstanding invoices. Late or unpaid invoices can have a major impact on your cashflow.
  • No Rainy-Day Account: Don’t make the mistake of spending every penny that comes into your business bank account. There are always opportunities to spend money on marketing and business development. While these expenses are good investments, it can be harmful to your company if you don’t have money set aside for a rainy day. It is common for small businesses to have slow seasons, which means that you need to have enough cash on hand to cover the costs when sales are trickling through. Set up a savings account designed for emergencies only. Ideally, this fund should have a minimum of three months of expenses.
  • Too Much Spending: It doesn’t matter how much money you are bringing in, you won’t be able to make a profit if you are spending more you are collecting. Often, businesses get bogged down with unnecessary subscriptions and services that eat into the cash flow and profitability each month. Take time to discuss your expenses with a financial pro, such as an experienced accountant. Find line-items where you can cut costs to protect your cash flow. Remember that a little bit can add up… saving $100 per month results in $1,200 in savings each year.
  • Excess Inventory: It is important to be sure that you have product on hand when the customers are ready to buy. But holding onto too much inventory can tie up your cash and make it difficult to keep up with ongoing expenses. If you have a warehouse stocked with products, then you need to dial in the sales trends and fine-tune your ordering. The goal is to have stock on hand for the shortest amount of time before it is sold. Your inventory can be managed by evaluating sales volumes, forecasts, supplier turnaround time, and available cash on hand. Have a system that takes care of ongoing inventory monitoring so you can reorder when needed, helping you avoid the loss of clients if something is out of stock.
  • Realistic Future Forecasting: While you are working to create opportunities for business growth, don’t bank on the money until the sales have actually occurred. One of the common cash pitfalls that we see is when business owners spend money now, assuming that they will have the necessary income needed in the future. You shouldn’t count on a sudden boom in your business in the future. The best solution is to evaluate your business records and data so you can see the trends that are normal for your industry.
  • Large Debt Burdens: Too much business debt can eat away at your profit margins because of the cash flow that is tied up in interest costs. Look for ways that you can manage your cash flow to pay off debt. Lowering these balances can reduce the amount of money that you are paying for late fees, overdraft costs, and interest expenses.

The Simplest Way to Avoid Cash Flow Problems

We’ve found that the most common reason business owners encounter cash flow problems is because they don’t have effective systems in place. It is important that you know the current cash position of your company, as well as upcoming expenses that will need to be paid. If you are just going with the flow and hoping that the money will be there at the right time, then it is likely that you will encounter big problems in the future!

As a business owner, you don’t need to take accounting classes or spend hours on YouTube watching accounting tutorials. The fastest and most effective solution to ensure that you are managing your financial reports and cash flow is to tap into the services offered by an experienced accounting team.

At Easier Accounting, our goal is to reduce your stress by creating a financial system that helps your business succeed. We offer years of experience in the industry. You can tap into our expertise and insights to find the right solutions that will support your long-term financial needs. We want to help your business with financial strategy, and we have proven experience that can be used to optimize your financial systems.

If you are interested in more information about business accounting systems, then we invite you to contact our team right away. Easier Accounting is here to answer your questions and help you find the right solutions to meet the unique needs of your business. We’ll explain the available services so you can see the benefits available for your company: (888) 620-0770.

How to Design the Best Accounting and Bookkeeping Systems for a New Startup

New startup entrepreneurs often experience the same things in the beginning stages of their business efforts: a to-do list that is miles long, and unending tasks to get the business off the ground. Accounting and bookkeeping systems should be a priority, but these tasks often fall to the backburner as efforts are focused on other business-building efforts.

It isn’t easy to start a business, especially when you are carrying the responsibility of managing the finances, product development, customer acquisition, and more. Most small business owners don’t have formal training in accounting and bookkeeping, which is why it can be valuable to enlist the services of an expert team. Accounting services aren’t only needed for tax preparation and filing, but these services can be invaluable to help you track profit margins, expenses, and more.

The right financial reports for your business will empower you in making the decisions that will propel your company forward in the future.

Good Systems Help to Grow Your Business

Your ultimate goal is to help your company grow, which is why it makes sense to spend your time on activities such as product development and marketing. These efforts will bring in the cash flow that will keep the business running. But you need to make sure that you are looking at historical trends and evaluating the possibilities for the future. Accounting and bookkeeping systems are integral to this process.

Tracking financial activity ensures that you aren’t overlooking potential tax write-offs and deductions. At the same time, you can implement systems that support budgeting goals and control spending. Too often, profit margins slip through the cracks, which is why a business financial system is essential for your success.

The Difference Between Bookkeeping and Accounting Systems

People often use the terms “bookkeeping” and “accounting” as synonyms. But there are distinct differences between the scope of work and services available. Bookkeeping and accounting work hand-in-hand, but it is important that you understand the ways they differ. Here’s a quick overview of the differences:

  • Bookkeeping: A person or team offering bookkeeping services might have a certification and/or on the job training experience, but it isn’t required to have a degree in the industry. Bookkeepers are responsible for managing the day and day out transactions of the business. Usually, bookkeeping services do not include audits or tax return filing.
  • Accounting: On the other hand, accounting services are focused more on the strategic side of financial management. An accountant steps in to help with financial supervision, which may include tasks such as bank statement reconciliation, tax strategy, tax preparation, and more. An accountant uses the information provided by the bookkeeping team to be strategic in the financial growth and overall financial health of the company.

It is important to consider both account and bookkeeping systems. Bookkeeping entails the ongoing recordkeeping activities for your company. Good bookkeeping software can be used to track and categorize the day-to-day transactions. At the same time, accounting taps more into the strategic side of running a business, helping you see the best strategies to manage tax burden and help your company grow.

Steps for Setting Up and Implementing Financial Systems

Are you trying to decide where to start with the implementation of a financial system? Here are a few steps that should be followed to help you get started on the right foot:

  1. Choose and Setup Accounting Software: A good software program is key to reduce busywork and improve overall results of your financial system. Not only do you need to select the software you would like to use, but you also need to have systems in place for the ongoing management of the transactions that are moving through your account. Business bank accounts are connected, but accounting and bookkeeping services are still needed for data entry, reconciliation, and more. Accounting programs are designed with checks and balances in place that help to reduce errors and automate the processes as much as possible.
  2. Open a Business Bank Account: All of your personal and business transactions need to be kept separate, which is why it is smart to open a new bank account dedicated to your business. Not only do you need checking and savings accounts, but it can also be helpful to have a business line of credit and a business credit card. Make sure all business transactions are moving through these accounts without getting mixed up in your personal spending.
  3. Hire a Financial Pro: It can also be helpful to hire professional services for accounting and bookkeeping. You are already juggling many responsibilities for your startup. Adding more busywork to your schedule only increases your stress levels and makes it harder to keep up with everything. If you find it challenging to be consistent with these ongoing bookkeeping tasks, consider the benefits of bringing in an expert team to oversee the details.
  4. Stay Consistent with Financial Tracking: Keep in mind that setting up the financial system is just the first step. It won’t help you to have a bookkeeping or accounting system if you aren’t using the available tools. Even though automation is implemented to track the money moving through your account, you need to be consistent about reconciliations and reviewing the details. Your decisions can be based on the financial health of your company, but this information is only accurate if you are consistent about ensuring the accuracy of the recorded transactions.
  5. Look to the Future: It can be beneficial to evaluate upcoming costs and potential areas of growth in your business. When you are proactive with maintaining good accounting and bookkeeping systems, then you can turn your attention to the strategic element of helping your company grow. You can rest assured, knowing that financial reports are accurate. At the same time, you can anticipate expenses that are coming up to help you manage the way your money is being used.

The Benefits of Bookkeeping and Accounting Services

As you learn more about the available benefits for your company, it’s easy to see how accounting and bookkeeping services can be valuable to boost your success and set you up for future growth. A good system helps you with the separation of personal and business finances. It is important to have a clear distinction by using different accounts and financial systems.

Also, bookkeeping and accounting services help you avoid common financial errors. Not only are you tracking the way the money flows through your accounts, but the reconciliation processes help to catch potential mistakes and fraud in the early stages. Identifying these problems right away is essential so that you can implement steps to stop the issue before things progress.

The most important benefit that you will find that is that accounting and bookkeeping systems are effective in streamlining your tax strategies, helping you maximize tax deductions. It feels good knowing that you are prepared for the upcoming tax deadlines, with enough money set aside to pay the bills. There is no reason for you to spend your valuable time crunching the numbers. Your accounting team can handle these details and provide the reports that break down your tax burden each year.

DIY Accounting and Bookkeeping Mistakes

The most important thing that you should keep in mind is the potential for mistakes and errors when you attempt a DIY approach for setting up these systems. Too often, startups are looking for ways to save money, so they implement a DIY accounting system. The problem is that errors are occurring and the system isn’t structured correctly.

Even though it seems like a savings in the beginning, the long-term costs can add up and make it more expensive in the long run. When the accounting and bookkeeping systems have been set up incorrectly, it can be expensive when an experienced accounting team needs to step in to redo the work.

The most effective and efficient solution is to get started with an experienced accounting team from the beginning. The money spent on these services is truly an investment that will help your company avoid common mistakes. By side-stepping these common issues, you can save yourself both time and money in the future.

Instead of cutting corners by trying to save money on accounting and bookkeeping services, look for other areas where you can reduce your business expenses. In fact, a good accounting and bookkeeping team can help with your budgeting strategy. Often, business owners find that the tax savings and financial streamlining is well worth the investment that was paid for services from a professional accounting team.

Talk to the Accounting and Bookkeeping Pros

What questions do you have about setting up accounting and bookkeeping systems for your small business? If you are evaluating your options, then we invite you to contact our experienced team for assistance. At Easier Accounting, we specialize in small business solutions. We’d love to have a conversation to help you identify the way our services can support your startup and boost your long-term profitability: (888) 620-0770.

5 Tips to Improve Business Financial Systems

Financial management is key if you want to set your company up for success in the future. Are you using business financial systems that are current in the industry and relevant to your business needs? If your accounting and bookkeeping system is outdated or under-performing, then it might be time for you to invest in an upgrade for your company. Not only can you streamline your financial tracking and reporting, but it gives you peace of mind to know that everything is up-to-date when looking at financial reports.

Modern Solutions to Improve Your Business Results

Too often, business owners are overburdened with many responsibilities, causing them to overlook some of the most basic steps that need to be implemented for financial tracking. One of the biggest problems is that business owners are missing the right financial system to handle the transactions that are moving through. For example, if you are using any systems that require manual entry, then it is a sign that you are missing out on the benefits of automation in the bookkeeping and accounting systems.

Don’t waste your time doing manual calculations or combing through financial reports. Several effective solutions can be used to improve your business financial systems. Today, we are sharing a few of these tips to help with the improvements that are needed to maximize your financial systems.

Tip #1: Automate Whenever Possible

One of the greatest advantages of technology is that it opens up possibilities for automation. Implementing the right accounting and bookkeeping system will allow you to automate transactions as they move through your account. These solutions help to reduce the time that you are spending on accounting tasks throughout the week. What would you do with the extra time if you were able to let go of manual calculations and eliminate stress about the tracking of transactions?

Additionally, automation helps to reduce the risk of error or mistakes. Even if your team is trained to use the system correctly, there is always a risk that a typo or mistake could throw off your financial report. One wrong number can have a domino effect that results in inaccurate reporting and false information. These human errors can be avoided by using an automated system. At the same time, you will have peace of mind knowing that the automation helps to decrease the risk of fraud.

A variety of accounting and bookkeeping software programs can be used for your business. If you are looking for the right program to meet your needs, then our team at Easier Accounting is here to answer your questions. Call us any time to learn about the automated solutions that can improve your financial system.

Tip #2: Choose Effective Software Features

As you start to learn more about the software programs available for business financial systems, you must understand your business goals to identify the right solutions for your company. These are some of the tools, features, and functions that are often included in the best accounting and bookkeeping systems:

  • Report Generation: You need to be able to run financial reports on-demand, which is why it is important to have built-in reporting systems.
  • Data Fetching: Automation is available when the business financial systems have built-in features that fetch data from your bank account. These transactions can be added into your accounting system automatically, without the need for manual data entry.
  • Invoicing: Most accounting systems offer the feature of invoice creation and management. You can view the invoices that are unpaid to know where you need to follow-up to collect payment. It is a huge benefit to automate invoicing so that you can reduce stress and mistakes related to payments and collections.
  • Payroll Processing: It doesn’t matter if you have 2 employees or 200 employees… payroll processing is an essential task that needs to be handled regularly. An automated accounting system makes it easy to track payroll information, including tax withholding, benefits, and more.
  • Expense Management: Set up checks and balances in the system that require management review when certain transactions come through. This process can be valuable to ensure that you are avoiding redundancies or unnecessary costs that are cutting into your profit margins.
  • Tax Forms: When tax season rolls around every year, you are required to provide the right tax forms for your employees and contractors. If you are using the right business financial systems, then it means that these tax forms can be generated automatically.

Tip #3: Avoid Paperwork

While business paperwork is sometimes unavoidable, there are ways that you can improve your systems to reduce the number of pages that are coming across your desk. The problem with physical paperwork is that you not only have to review the information, but it also needs to be filed and managed after you are done with those pages.

Good business financial systems are designed to minimize the dependence on printed paperwork. If you need to look at a report on paper, then you have the option to print out the pages that are needed. But most of the time, the information is stored in the cloud, helping to reduce the clutter and stacks on your desk. It feels good to get out from under the piles of paperwork that tend to stack up in an office. All paperwork can be stored and managed in a digital format: contracts, invoices, receipts, and more.

Decreasing the paperwork that is used is essential if you are looking for ways to improve productivity among employees and managers. There’s no reason to have people sorting through loose pages when everything can be categorized and accessed quickly online. Filing cabinets can be burdensome and frustrating to work with, which is why many businesses are moving away from paper filing and using cloud-based accounting systems instead. Plus, you will be glad to know that you are doing your part to protect the environment.

What are your options for paperless financial tracking? Talk to our accounting team about cloud-based financial systems that can be used for your small business. These solutions give you access to the reporting and all of the accounting numbers with the touch of a button. For example, you don’t need to print invoices or reports when you can access all of the information through a smartphone or laptop computer.

Tip #4: Make a Plan and Stick to It

You need to have a clear picture of where your business is in the current moment, and where you are heading in the future. The right business financial systems will allow you to use the insights and data to create an actionable plan that will be beneficial for moving your company forward.

As you are setting goals, you should have clarity about your intentions for expansion, business development, inventory management, and more. Focus on your financial goals, then be sure that your systems are designed to move you towards those goals.

Planning can be done on both macro and micro levels. For example, not only do you need to think about the annual goals, but you also need to have plans in place regarding quarterly and monthly budgets. Implementing this level of planning will help you make meaningful progress forward because you will have the resources that can be reinvested into marketing and business development.

Tip #5: Hire Outsourced Accounting Services

Finally, don’t overlook one of the most effective ways to improve business financial systems: hire an outsourced accounting team. These professional services can be used to leverage your financial results and improve your business finances in many ways. Hiring an outsourced accountant or bookkeeper means that you can hand off the responsibility to a team that understands the most effective way to track financial information.

It is incredible to see the productivity improvements that can come by letting the pros take care of these financial services. For example, your accounting team can handle a variety of services, such as payroll processing, tax strategy, account reconciliation, and more. As you are looking for options to improve business financial systems, talk to our team about the personalized services that can be used based on the needs of your company.

Hiring a trusted team to oversee your business finances can be one of the most effective ways to amp up your results. You must have a clear picture of the financial health of your company at all times. We can help with the implementation of the right bookkeeping and accounting system. Then, our team will offer ongoing support to ensure that you are keeping up as things change throughout the year.

Are you looking for support with your business financial systems? Our team is here to help! At Easier Accounting, we provide a variety of small business accounting solutions designed to support your goals. We invite you to contact us for information about the available services. Call our experienced team any time to find answers to your questions and proven solutions that are the right fit for your business needs: (888) 620-0770.

7 Effective Tips for Designing a Good Accounts Payable System

One of the most important things you can do as a small business owner is to design a good, organized system for managing your books. Do you feel like you have a handle on your accounts receivable and accounts payable system? Today, we are sharing a few tips to help if you are looking for ways to improve your bookkeeping and accounting practices.

While there are tons of resources online about small business finances, sometimes it can be a trick to know where the actionable points are that need to be implemented into your system. Our team at Easier Accounting has put together some of the “best practices” that will keep your systems running smoothly, giving you a good foundation to help your business grow.

Accounts Payable System: What is it?

It can be hard to understand the lingo if you aren’t familiar with the accounting industry. Your accounts payable system is the tracking method that you are using to see the outstanding bills and handle payments that need to go out to your external vendors.

There are many times when your business receives products or services, but the payment isn’t issued upfront. Instead, you are billed for the amount due; then payment is sent within a specified timeframe. For example, a vendor that provides office supplies for your office will send an invoice that shows the due date for the payment that needs to be remitted. These accounts payable invoices are basically short-term debt liabilities that need to be paid right away.

Accounts Payable vs. Accounts Receivable

Don’t be confused by the two terms used in the accounting and bookkeeping industries: accounts payable and accounts receivable. As mentioned above, accounts payable is the tracking of balances that you owe to other vendors. On the other hand, accounts receivable shows the invoices that you can collect on: the balances owed to your company from your customers.

A good bookkeeping and accounting system will include systems for both accounts payable and accounts receivable tracking. This information needs to be managed so that you can be sure that money is always in the bank when it is time to pay the bills that are due.

Why Accounts Payable Matters

It can be hard to keep track of all of the payments that are due if you don’t have a good filing and tracking system for the invoices that are coming through. Not having a good accounts payable system in place means that you could miss payment due dates, often resulting in late fees and interest charges. If payments are missed altogether, then your services could be disrupted, or the balance might be sent to a collections department.

Without the right bookkeeping and accounting system, your vendors will lose patience, and your reputation will suffer. It’s hard to keep your business running if you don’t have control over your cash flow.

7 Tips to Improve Your Accounts Payable System

As you can see, you must have a good system in place to manage your accounts payable system. Here are a few tips and benefits if you are looking for ways to implement a new system or upgrade your current system:

  1. Leverage Automation: Technology has transformed the way you can do business. It makes sense to leverage automation whenever these features are available. There’s no reason for you to spend time on busy work (like manual financial calculations). With manual calculations, you need to not only receive the invoice that comes through, but also record the information, track the payment date, and ensure that the payment is processed at the right time. This process can be tedious and time-consuming.
  2. Minimize Human Error: Unfortunately, there is always the risk of human error at every step of this process. This busy work can be skipped by using a system that uses automation to track everything. Not only will your system be streamlined, but you can avoid common problems that occur if mistakes are made. A good accounting system has built-in checks and balances, helping you catch potential errors if they occur. This proactive approach is essential for minimizing the risk of on-going fraud within your organization. We live in a time where fraud is a potential risk in any business, so you need to be diligent about protecting the interests of your company.
  3. Save Money: It might seem counterintuitive that paying bills will save you money. But, remember that staying current with those outstanding bills makes it possible for you to avoid additional costs, such as interest charges and late fees. If you are trying to manage your cash flow, then you need to be sure that you are proactive in avoiding unnecessary expenses for interest and fees. A good accounts payable system reduces the likelihood of late payments because you are always staying ahead of the balances that are due.
  4. Improve Communication: When you are using the right accounting and bookkeeping system, you can utilize built-in communication features that keep your vendors and clients updated on the status of invoices. One thing to consider: sometimes early payment discounts are offered if payment is received in a certain timeframe. Improved communication through your accounts payable system means that you might be able to leverage these discounts by paying the invoices early when money is available.
  5. Simple Financial Reports: Centralizing your accounts receivable and accounts payable systems is an effective way to have access to important financial reports. When you are making business decisions, both big and small, it is smart to have a clear picture regarding the financial health of your company. These reports can be accessed quickly and easily, giving you the information necessary to make educated decisions regarding the money that is spent.
  6. Eliminate the Paperwork: Do you feel like it’s a hassle to deal with paperwork that is always moving across your desk? In addition to the immediate management of the papers, you also need to have a filing system in place so that you can reference the documents whenever they are needed in the future. This mess of paperwork can be avoided by going digital. Choose an accounting system that offers cloud storage solutions. As a result, you can see your bookkeeping and accounting information at any time, even if you are away from the office.
  7. Built-In System for Following Up: Cash flow is an ongoing battle for many small business owners, so you need to be diligent about keeping track of the payments that clear your bank account. For example, you could potentially run into issues in the future if one of your vendors is late with the deposit of your check. As a result, the transaction might clear months later, which could throw off your cash flow if you don’t have a good system for tracking. Double down on your tracking system by using an accounting system that not only tracks the outgoing payments, but also automates the follow-up to track when the balance cleared the bank account.

Is it Time to Upgrade Your Accounting System?

Are you enjoying all of the benefits listed above? If your accounts payable system isn’t working to improve your business systems, then it is time to re-evaluate your options. There’s no reason why you should be scraping by with a poor system or limited financial tracking. Businesses with problematic accounting systems can expect to encounter serious problems in the future. In fact, a bad accounting system typically leads to cash flow issues… which might be the cause of business failure.

You can avoid these issues by staying proactive with your accounting systems. Make sure that financial tracking is a priority within your company. Be diligent about keeping these systems current and accurate, giving you the peace of mind to know that financial reports are always correct when you are looking at the numbers.

Tapping into Expert Advice

The great thing about implementing a new accounts payable system is that you don’t have to “reinvent the wheel.” Instead of wasting your time and money on unproven systems, it’s more effective to tap into the expertise offered by a team that knows the best solutions in the industry.

Your job as a small business owner is to focus on business growth, employee management, and the many other responsibilities that pop up on a daily basis. Don’t waste your limited time on busy work and bookkeeping tasks! Instead, you can use technology, expert services, and a good accounting software to optimize your processes and improve overall results for your company.

For more information, Easier Accounting is always here to help. We are working hard to offer affordable, effective accounting and bookkeeping solutions for small business owners. Our team has worked with small businesses in a variety of industries. We understand the nuances of financial management, and we’re here to help you implement an accounting system that works for your needs.

You are welcome to call us at Easier Accounting to learn about the services that are available. Reach out at your convenience to have a conversation with one of our helpful team members: (888) 620-0770.

Answers to Your 7 Most Common Bookkeeping Concerns

It’s no surprise that questions come up when you are trying to figure out the ins-and-outs of running a business. Whether you are facing bookkeeping concerns or questions about marketing strategies, it is essential that you tap into an experienced team that can guide your planning. As a small business owner, you don’t have to figure it all out by yourself. Instead, you can focus on your strengths and bring in the assistance that is required to keep your business moving forward.

It is common for small business owners to face questions and issues regarding their financial tracking systems. Where should you turn to find answers to these questions? A Google search can be overwhelming because of the vast amounts of information that comes up. Plus, it’s hard to know which resources are accurate and reliable.

The best solution is to look to a trusted expert in the industry. Our team here at Easier Accounting is just a phone call away if you need answers, advice, or information. Here are some guidelines that will help with some of the most common bookkeeping concerns that we hear from small business owners:

1. My financial reports are always inaccurate.

It can be frustrating to look at a financial report and know that the numbers don’t match up with the reality that is happening in your bank account. These financial reports aren’t worth anything if the information is incorrect. If you are going to benefit from your bookkeeping and accounting system, then you need to be sure that the transactions are correct and everything is up to date.

Two things need to be addressed to ensure that the information is accurate: use a reputable accounting software, and tap into the services of an experienced accounting team. You will have checks and balances in place with the software and the ongoing reconciliation services to ensure that your reports are always accurate.

2. I’m scared that the IRS will audit me.

While there is always a risk of auditing, a few proactive strategies can be used to reduce the risk of auditing. Too often, business owners put themselves at risk because they attempt a DIY bookkeeping and accounting system. It’s not worth the little bit of money that will be saved on tax preparation fees when you are facing expensive fines and penalties due to bookkeeping inaccuracies.

We can’t promise that bookkeeping and accounting services will eliminate your audit risk. But we can help you create a clear-cut, accurate system that ensures you are sticking with the guidelines and regulations established by the IRS. Our goal is to help you minimize your tax burden while staying within the laws that apply to your business.

3. Payroll is taking up so much time; I can’t keep up!

Managing payroll is one task that never goes away. As long as you have a business and employees coming to work, you need to be consistent with payroll processing. Timely and accurate payroll calculations support the needs of your employees because they know that they can depend on the paycheck coming through every month.

If your business is growing and you don’t have enough time to manage payroll, then it might be appropriate to enlist the services of an experienced accounting and bookkeeping team. In addition to regular payroll processing, we can also help with the common bookkeeping concerns regarding payroll tax calculations and payments. You need to be sure that you are staying consistent with the paperwork and payments required by the IRS throughout the year.

4. I don’t have the time or energy to hire and train a new bookkeeper.

Are you encountering the common bookkeeping concern that it feels like there is a revolving door on your office? Employee turnover is not only inconvenient, but it is expensive to hire someone new and get them up-to-speed on the accounting systems that are used in your business

Luckily you can avoid the responsibility of training and hiring. Instead of carrying this burden in-house, it is cheaper and more effective to enlist the services of an outsourced accounting team. When our team is on the job, you can rest assured that there will never be gaps in the services that are needed for your business financial tracking systems.

5. I know I need a new bookkeeping system, but I don’t know where to start.

What is your current bookkeeping system? Some business owners might be outdated, using manual tracking either in handwritten notebooks or with excel spreadsheets. Other business owners might have an accounting software program that is 10+ years old, missing some of the key features that are now available in the industry.

If you haven’t upgraded your bookkeeping and accounting system in a while, then it’s time to talk to an experienced team to learn about your options. Instead of fumbling your way through the software setup, let the pros handle everything for you.

6. Cash flow is a mess, making it hard to pay the bills.

Even if you have money coming in from products and services that are sold, you are still running the risk of cash flow problems if you don’t have a good accounting system. You must be tracking every transaction that moves in and out of your financial accounts. You need to know the money that will be coming in from your customers. At the same time, you need to have a clear picture of the expenses that will be coming up in the future.

The right software and ongoing accounting services ensure that you are current with transaction auditing and account reconciliation. As a result, you always know how much is in the bank and how much money you will owe in the future. This information will support you when it is time to make the difficult decisions that impact the profitability and cash flow each month.

7. We need bookkeeping help, but I can’t afford to hire a full-time bookkeeper!

Just because you need bookkeeping support, doesn’t mean that you have to hire another person to be on your payroll. The cost that comes with an employee adds up! In addition to the person’s salary, you also need to bear the burden of benefits, overhead costs, and more.

One effective way to reduce your spending without sacrificing the quality of bookkeeping services that are available is to lean on the support from an outsourced accounting and bookkeeping company. You’ll see that our full-service solutions are a fraction of the price that you would pay for an in-house employee. You can lean on the advice and information from our experienced accounting team and save money at the same time.

Choosing the Best Accounting Team

As you can see, there are many ways that your business will benefit when you enlist the services of an experienced accounting and bookkeeping team. You don’t need to carry the financial responsibility without tapping into the services and expertise offered by the pros.

Some business owners look to their local networks to find payroll and bookkeeping services in the geographical area. There’s nothing wrong with hiring a team that is close to home, but you also need to consider the cost of these services. In many situations, it is more affordable to hire a reputable online accounting service.

Outsourced accounting is becoming more popular with all business owners. Look at the numbers: there’s no question that you will save both time and money by hiring the pros to manage your small business accounting needs. As you learn about the services that are available, you’ll see that it is possible to outsource all of the stressful tasks: payroll processing, tax strategy, financial reporting, tax calculations and filing, and more.

Simply research your options and then choose the accounting and bookkeeping team that will be a good fit for your needs. You’ll see that Easier Accounting has an excellent reputation in the industry. We’ll gladly answer your questions and help you determine if our services are right for your business requirements.

Accounting Services You Can Trust

When it comes to your business finances, it is essential that you hire a team that you can trust. You are leaning on the support of an accounting team, which includes the way you manage your money and set up your tax strategy. Many business owners have said that good accounting services were the key factor in ensuring the long-term success of the company.

If you aren’t already enjoying these benefits for your small business, then our team is here to assist. The simplest way to get started is to open up a conversation to learn about the options that are available. We’d love to talk with you about the ways that we can support your business needs. We specialize in small business accounting services and can help you overcome some of the most common bookkeeping concerns faced by business owners. You can reach our team at Easier Accounting by calling us at (888) 620-0770. Call today to see how our services can improve your business financial systems.