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What If a Small Business Neglects Bookkeeping During the Holiday Rush?

If your small business experiences an upsurge of business during the holiday season, it may be tempting to cut corners on seemingly non-urgent things. Bookkeeping and accounting may be one of those things that fall off of your priority list when you are busy keeping your head above water. Your strengths may lie in advertising, customer service, product manufacturing, and other parts of your business. The accounting part of your small business can be better left to professionals.

As you are focusing on building your business and gaining your best holiday profits yet, find ways to lessen the stress in your life. Putting off bookkeeping to be done at a later time will only lead to unnecessary setbacks and fees for your small business. If you are shoving receipts into a bin, hoping to get organized come January, here are some things that may go wrong:

Potential Loans Are Unlikely

There may come a time that you need to go to a bank for a loan. Your bookkeeping will have to be in order if you hope for a bank to invest in your business. A loan officer asks for a detailed account of your income vs. expenses. They are looking for a specific percentage that will allow you to take on more debt while being able to pay back that debt in a timely manner. If you don’t have the books to show them, then your loan will be denied.

When you put accounting on the backburner, you won’t be prepared when you’re in a pinch and hoping to present your small business favorably to a potential investor. If you have a friend or business associate interested in your product and company, they’ll want to see the numbers before investing. It is vital to keep your business organized and presentable if that chance were to present itself.

Tax Fees and Auditing Red Flags

The problem with putting off bookkeeping for the final quarter of the year, during your holiday rush, is that you have to file for taxes come the new year. Setting yourself up for unorganized books and a backlog of purchases and income statements to go through by the tax deadline is a bad idea. In fact, if your books are not kept in real-time, it allows greater scrutiny from the IRS. If you have a strong accounting system in place, or better yet, hire a small business accounting service, then you will never be lost when it comes to taxes. The last thing you want to do is subject your growing business to tax fees and penalties because you failed to do your part with bookkeeping.

A small business that does not have acceptable bookkeeping practices in place is more susceptible to audit by the IRS. Your business is more likely to be audited if your books are not comparable to other companies in your industry. When you maintain good bookkeeping, you will clearly understand how to report your income and claim tax deductions. And you will also have nothing to worry about if you do happen to be audited by the IRS.

More Vulnerable to Theft

A small business without a strict accounting system, including checks and balances every step of the way, is vulnerable to fraud within the company. No matter how much you trust your partner or employees, every company must have systems in place that will not allow for “skimming off the top.”  The most honest people can have desperate moments if they know there is no way to get caught. Your bookkeeping system needs to have strong internal controls that will identify missing money or uncounted inventory.

Strong internal controls can include having two people be present when checks are signed. More than one person counts the money and goes to the bank together to make the deposit each morning. Inventory is counted and checked regularly. There are many ways to have checks and balances in your business to keep employees honest.

Invoices Go Unpaid

As your business grows, it may no longer be plausible to remember which client hasn’t paid or usually pays late, etc. A detailed account of outgoing services and incoming payments should always be present in your books. It will leave you feeling more confident when you seek out late payments, knowing that your books are organized. Your company’s reputation lies in sending out invoices and expecting them to be paid on time. If customers catch wind that you don’t ask for payments here and there, it will reflect poorly on your business overall.

Payroll Mistakes

When your books are not organized, then it is likely that you could be overpaying or underpaying your employees. If you have employees that are commission-based, detailed records are essential for calculating their income each month. When it comes to tax withholdings on your employees’ paychecks, if the amount is not correct, then you could be withholding the wrong amounts that will have to be corrected later if caught. This will lead to more fees.

Waste of Time With the Backlog

When you neglect to keep your small business’s books in real-time, you set yourself up for a mess of records to organize and sift through. Not only is the threshold for mistakes more likely, but the time you put into sorting and recording could be better put into building up your business for the future.

There may be some aspects of your business that you can put on the backburner during your busy times, but keeping proper books is not one of those things. If you are feeling overwhelmed, instead of skipping over accounting processes, hire a small business accounting service that will take care of it all for you. The relief that it brings you during a stressful time will be worth it.

Use Your Small Business Bookkeeping to Plan for Future Success

When your books are in order, you can use your calculated earnings and expenses to prepare for your business’s growth in the future. You will be able to hire the right amount of staff and order enough inventory for busy times ahead of you. Take a look at some ways that your diligent, consistent bookkeeping and small business accounting systems will set your business up for future success:

  • Cash Flow Projections: If your small business has an organized bookkeeping system, you will be able to predict your cash flow better and use it optimally. You can invest in higher amounts of inventory, knowing you have the money to spare and that you can expect significant returns. When you have a clear view of your cash flow, you can make deals with vendors and confidently show the business you will be offering them. This will give you the assurance to make deals that benefit your small business and the supplier’s business.
  • Clear View of Fixed and Variable Costs: Detailed books will give you a breakdown of your fixed and variable costs. When you combine this knowledge with your cash flow summaries, you will be able to have a look at which variable costs return the most profit. Making better investments into your small business is going to set your business up for success.
  • Forecast to Optimize Profit: When you get through your holiday rush this year with great success, you will want to go into the next busy season with bigger goals. It is essential to focus on asset optimization, which is the best price for each product or service that will keep the customers coming. Having records that look back on the number of customers related to the particular promotion you were offering at that time will help you plan for sales and promotions in your small business.

It is essential to use your organized accounting system to make decisions for your business. When you get through the holidays and have detailed bookkeeping to look back on, then you can use those numbers to improve your business. You can take your successful holiday season and make it even more successful for the next year.

Contact Small Business Bookkeeping Professionals

As an entrepreneur, it is tempting to do it all yourself in order to save the most money. This isn’t always possible, and it’s certainly not always true. When you hire experts on small business accounting, you can rest assured knowing that your books are well-organized and accurate. When you hire outside accountants to help your small business, you can focus on the parts of your business in which you are most passionate.

We want to help you during the holidays! When you hire professionals to take care of your bookkeeping and finances, you will receive a clear breakdown of your small business’s accounting. Having a good handle on accounting can help you better predict and prepare for the future of your company. And your small business has a greater opportunity to grow. Give our team at Easier Accounting a call and receive the accounting relief that you need this season: (888) 620-0770.

Finding the Right Bookkeeping Help for a Small Business

You know your business financials are a mess… but how often do you look the other way? As a business owner, there is a lot that you need to juggle from day to day. If you are struggling to keep up with accounting and bookkeeping responsibilities within your company, then it might be time to look for bookkeeping help.

The Right Timing: Finding Bookkeeping Help

It’s all too common for bookkeepers to procrastinate the decision to hire bookkeeping help. You know that your business needs support with financial tracking, but many business owners convince themselves that it’s worth saving a bit of cash by keeping bookkeeping management in-house.

The truth is that it’s never too early to hire a bookkeeper. When you bring in bookkeeping help, it means that you can rely on a professional to track transactions and keep your business on track with cash flow, invoicing, and more.

Whether you are launching a new company, or your established company is growing, you need to keep track of your finances. The numbers will show you areas of opportunity, issues that need to be addressed, and potential downfalls that could harm your success in the future. Having immaculate books is a great investment so you are prepared for anything that may come in the future.

So, if the thought has crossed your mind that you should hire a bookkeeper, then now is the time to act. Get started by finding bookkeeping help right away so you can set yourself up for success down the road.

Your Options for Hiring Bookkeeping Help

There isn’t one cut-and-dry solution to bring in someone to help with your books. Here are a few common options you might consider:

  • Employee: Depending on the size of your company, you might hire a part-time or full-time bookkeeper. Most small businesses don’t need full-time bookkeeping services, so it’s common to bring on an employee who can also help with other administrative tasks as well. Hiring an employee means that you have an in-house team member who oversees all of the transactions and financial details that are moving through your bank account. Realistically, your company needs to be big to justify the cost of bringing on an employee. If you don’t have over a million dollars in annual revenue, then you should probably skip this option and look at outsourcing solutions instead.
  • Freelancer: A second option for bookkeeping help is to hire the services of a freelancer. You can find independent providers who oversee everything related to bookkeeping, often for a flat monthly fee or an hourly rate. Hiring a freelancer is a great way to bring in good talent without worrying about the overhead burden of paying for a full-time employee. Since you are outsourcing these services, it means that you don’t have the costs for benefits, employment taxes, office space, equipment, and other costs associated with in-house employees. While there are many benefits from hiring a freelancer, this solution also comes with a few drawbacks. For example, if the person is sick or out on vacation, then you might have limited access to get information or answers to your questions.
  • Firm: The third option you might consider is to hire a bookkeeping firm. This means that you are outsourcing to a team of bookkeepers. Often, specific people are assigned to your project, ensuring that you have continuity in the services provided. The cost of a firm might be a little more expensive than hiring a freelancer, but you still enjoy the benefit of avoiding the expenses of a full-time employee. Hiring a bookkeeping firm comes with advantages. For example, you have ongoing access to a team of professionals, which means that you don’t have to wait for information if someone is out of the office.
  • Local: The last option you might consider is hiring a local provider. For example, you can find a bookkeeping firm in your town that offers outsourced services for small businesses. Some business owners like the option to meet with their bookkeeper in person. But your options will be limited since there are only so many providers available in the local area. Keep in mind that you can often enjoy face-to-face conversations with bookkeepers who live in other parts of the country by using digital conferencing tools. Since bookkeeping and accounting are managed in the cloud, there is no reason why you need someone who can come into your office to handle the bookkeeping services.

Factors to Consider When Hiring a Bookkeeper

Not only do you need to think about the type of bookkeeper you would like to hire (employee, freelancer, or firm), but you also need to look at specific details of the services you will be receiving. Here are a few things that should always be considered if you are hiring a small business bookkeeper:

  • Cost: How much do you have budgeted for these bookkeeping services? It’s smart to dial in the pricing in advance so you aren’t surprised by a high bill later down the road. Ask questions about the way the costs will be billed – based on a flat-fee service or if you are charged hourly. If you will be paying the bookkeeper for hourly services, then it’s a good idea to ask about the estimated hours that will be required based on your scope of work for the project.
  • Timeline: Do you need bookkeeping services to get this project off the ground? A one-time project might be sufficient to get your system dialed in, then you can keep up with DIY maintenance in the future. But, more often than not, it’s worth investing in ongoing bookkeeping services so you don’t have to worry about the financial requirements in the future. Talk to the bookkeeper about possibilities for a long-term engagement, including services for monthly reconciliations and audits.
  • Process: What is the approach the bookkeeper will be taking with your financial reports? Ideally, you need a team that follows a strict schedule to ensure that your books are always up to date. Also discuss other details that will affect the success of your company, such as bookkeeping software and other automation that can be used to improve your results.
  • Collaboration: A bookkeeper offers limited financial services. This person is responsible for ongoing transactions and quality control. But they don’t offer the bigger-picture services that are often needed for small businesses, such as accounting. For example, even though bookkeeping help can be useful for invoicing and payroll processing, your bookkeeper doesn’t have the experience or strategy that you can gain from an outsourced accounting team. Ideally, you need both bookkeeping and accounting services. Either select two separate providers who can work together. Or, find an outsourced firm that provides both bookkeeping and accounting in-house.
  • Experience: Does your provider have the unique experience that relates to your industry? It might not make sense to hire someone who mostly works on large corporate accounts. Instead, choose a bookkeeper or bookkeeping team that focuses on small businesses specifically. When the provider has relevant experience, it means that you can expect that the services will be a good fit for your unique needs. Find a bookkeeper who knows what they are doing, and can offer insights that are specific for your industry and size of business.
  • Services: Ask about the specific services offered for your company. These services need to look at data entry and accuracy of transactions. It’s also helpful to have bookkeeping help to prevent and spot theft, ensure tax compliance throughout the year, and keep you on-track with payroll processing.
  • Relevancy: It’s essential that you have a bookkeeping provider who stays up-to-date with ongoing changes in the industry. The field of bookkeeping and accounting is constantly changing, and you need to be sure that your company is keeping up with these changes. Your bookkeeper should know the current regulations and be able to tell you how they are keeping up with the industry as new regulations come online.

Personalized Bookkeeping Services for Small Businesses

You deserve quality assistance for your small business. Hiring bookkeeping help can be a great investment, giving you access to professional assistance that will keep your company on solid ground. This strong foundation is the perfect step needed so that you can grow to bigger heights in the future, ensuring that your financial system will be able to adapt as your company continues to expand.

Our team at Easier Accounting understands the importance of implementing good bookkeeping practices for your small business. We work with entrepreneurs and small companies, keeping our skills focused on the specific services that are relevant to your needs. Whether you need basic bookkeeping help, or you are looking for solutions to transform your approach going forward, we offer a range of services that can be personalized for you.

Learn more about these quality solutions by reaching out to our team at Easier Accounting. We’d love to have a conversation with you about the way our bookkeeping team can support your company: (888) 620-0770.

Outsource Bookkeeping to Avoid Unnecessary Stress

Running a business can be stressful, especially with the recent economic events that are impacting all industries. If you are looking for ways to reduce your stress during these unprecedented economic times, then you might consider the option to outsource bookkeeping services so you can decrease your busy work.

Running a business requires a lot of paperwork and busy work that needs to happen behind the scenes. The glamorous part of being a business owner is having the flexibility of being your own boss. But you can’t enjoy this process if you are tied to the desk because of never-ending paperwork. Not only do you oversee the marketing campaigns and product development, but it can be a burden to keep up with expenses and invoices.

It’s common for entrepreneurs to feel like they are being stretched – with limited time in the day to get everything done. If you can’t squeeze in the most important tasks, then it might be time to hire outsourced services for assistance. Delegation is a great way to take your time back, giving you more control over your schedule.

Bookkeeping and COVID-19

Bookkeeping is more important than ever with all of the changes happening in the business world. Some businesses are facing serious cashflow problems after their stores were closed for a few weeks with the quarantine lockdowns. Other businesses have been booming as consumers have been changing their shopping habits in this pandemic.

No matter what is happening in your business right now, it is a great time to outsource bookkeeping if you are looking for a way to manage your finances more effectively. Here are some of the reasons why bookkeeping is a necessary service for all business owners during this pandemic:

  • Business Relief Loans: Many business owners accepted federal loans through the stimulus packages offered for COVID-19 economic relief. This money was made available through the Small Business Administration, but it comes with certain requirements that need to be met by business owners. If you want to receive forgiveness for any part of the loan, then you need to document spending requirements for the money you received. A bookkeeping service can help with the transaction tracking and details that will be required for your loan forgiveness. Up to $100,000 of these loans can be forgiven, depending on the situation of each business.
  • Managing Unexpected Growth: Some companies, such as online grocery ordering and other digital services, have experienced a huge surge in growth because of the pandemic. Since people aren’t visiting brick and mortar stores, shoppers are turning to digital options for the products and services that are needed. If your business has seen an increase in sales, then it’s a good idea to outsource bookkeeping services so you can accommodate the financial changes. Managing these profits right now will set your business up for higher levels of growth in the future.

Bookkeeping and accounting were important business services before the pandemic started. As the business climate has changed, it is easy to see that these services are continuing to be essential for managing the finances of companies – both small startups and big corporations.

Outsource Bookkeeping: How it Will Reduce Your Stress

Hiring outsourced services might be the best thing you can do during these changing times. Many business owners can see that they need additional support and staffing. But they are worried about bringing on more employees because of the overhead costs and potential cost burdens they will be facing in the future.

If you need help with financial tracking and ongoing cash management, then it’s smart to outsource bookkeeping services. Here are a few ways that your bookkeeper will reduce your stress:

  1. Tracking Profit Margins: Do you know how much your business is profiting after you calculate in the cost of expenses? Profit margins can be thin, especially in the first years of running a small business. Professional bookkeeping services help you stay ahead of all of these transactions, so you know exactly how much money you have leftover to reinvest in the business again.
  2. Full-Service Solutions: One of the benefits of hiring an outsourced bookkeeping team is that you can get assistance with a variety of financial tasks. For example, your bookkeeper can help with everything from monitoring your monthly transactions, to handling payroll, paying the bills, and keeping up with invoicing.
  3. Free Up Your Time: What would you do with an extra 5 or 10 hours a week? Handing off the responsibility is a great way to increase your free time, giving you an opportunity to focus on the projects that are sitting on the backburner. For example, when you decide to outsource bookkeeping, you might find that you are able to turn your attention to the development of a new product or a new marketing campaign to bring in more sales.
  4. Manage Tax Burden: Paying taxes is an unavoidable part of running a business. But just because you need to pay taxes, doesn’t mean you shouldn’t have an aggressive strategy for reducing your tax burden as much as possible. The combination of outsourced bookkeeping and accounting services can be a powerful way to keep track of every penny that can be calculated as a write-off. Even the small transactions can add up over time, helping you save a bunch on your taxes in the future. DIY bookkeeping often results in overlooked write-offs because some of these transactions slip through the cracks.
  5. Flexibility of Services: Hiring a full-time employee means that you need to have enough work to keep that person busy throughout the month. Often, bookkeeping tasks don’t require daily attention, so it doesn’t make sense to bring another employee onto your team. When you outsource bookkeeping service, it means that you have access o these services on-demand – only paying for the exact services you need. Many business owners find it more affordable to hire an outsourced team instead of a full-time employee.
  6. Peace of Mind: You can’t put a price tag on the peace of mind that comes from professional financial services. When you know the reports and you can have confidence that these numbers are on track, then you don’t need to wake up at night wondering if your business is going to succeed. Outsourced bookkeeping services offer a great solution to stay ahead of business financial tracking, so you can enjoy the benefit of improved good health.
  7. Updated Information: It can be a lot of work to keep up with the changing laws and regulations that impact your business. Instead of spending your free time reading the small print of the tax laws, outsource these services so you can maintain accuracy in the forms and paperwork. Outsourced bookkeeping and accounting are important for keeping up with the rules that are constantly changing. Plus, you can keep your books current with the latest trends in the accounting industry, such as cloud-based systems and optimal reporting.
  8. Accurate Financial Information: How many times have you run a financial report, only to realize that the report is worthless because the transactions aren’t current? If you can’t rely on the accuracy of your financial reports, then it’s a surefire sign that you should outsource bookkeeping services. Having a dedicated team to keep up with these transactions is a great way to give you the ability to make sound financial decisions when opportunities arise.

Outsourcing vs. Staff Bookkeeping

Each business is unique, which is why outsourcing isn’t always the best answer. But it is common for business owners to find that outsourced services are much more affordable and effective compared to hiring a part-time or full-time staff member.

Consider the amount of money you will spend on an employee. Not only do you need to cover the costs of the person’s salary and benefits, but a variety of other expenses are incurred for recruiting, onboarding, training, and turnover. It can be a burden on a small business to keep up with these required expenses.

Instead of adding to your stress by going through the hiring process to bring in another employee, look at the benefits of outsourcing. For example, when you outsource bookkeeping, you can have confidence knowing that the bookkeeping team is already trained and ready to implement the most effective strategies for your small business. You don’t need to worry about ongoing training and management of an employee.

Plus, outsourced bookkeeping services are often a fraction of the price that you would pay for an in-house employee. The cost savings alone often make it worth it to outsource instead of hiring an employee.

Professional Bookkeeping Services You Can Trust

At Easier Accounting, our team understands the challenges you are facing in running a small business. Often, financial management and bookkeeping can be difficult to keep up with among your other business responsibilities. If you are looking for ways to get the support that you need, then our team is just a phone call away.

We specialize in bookkeeping and accounting services for small businesses. Contact us right away if you are ready to outsource bookkeeping tasks to the professionals: (888) 620-0770.

8 Things to Consider When Hiring a Small Business Accountant

Have you decided that it is time to hire a small business accountant to help with the financial tracking for your company? It might be a big step to bring in a financial professional. But, this decision is an important decision to move your business forward in a positive way. Managing the financial records will set the foundation that is needed for success in the upcoming years.

DIY accounting is one of the biggest mistakes that can be made for a start-up or small business. Even though it might seem simple to track transactions and income, the truth is that important details are often overlooked along the way. Instead of trying to save money by handling the accounting and bookkeeping in-house, it is better to spend the cash on a professional team to help. In fact, it is likely that you will save more money because of the tax write-offs and other financial benefits that come from an experienced accounting team.

If you want to move forward towards financial success, then you need to have an accountant that you can trust. Follow these important tips to help you choose the right small business accountant:

1. How Much Experience Do They Have in the Industry?

Not only do you need to consider the length of time that they’ve been working in the industry, but you also need to think about the type of experience they bring to the table. Just because someone has been working in finance for many years, doesn’t mean that they have the understanding to navigate tax laws that relate to small businesses.

Your best bet is to choose an accounting team that specializes in the types of services that you need. For example, if you are launching a start-up, look for accounting services focused on small businesses, instead of hiring a big, corporate accounting team.

2. Does Your Accountant Have the Right Education and Accreditation?

Anyone can say that they are a financial professional. But, knowing how to do data entry in an accounting software isn’t the same thing as analyzing reports and putting together a financial strategy. Ask your new accountant about the education they gained to be qualified for the position.

Knowing information about their education and experience is a great way to ensure that they have the skill set the is needed to boost the success of your company. You need to hire someone that is familiar with all types of bookkeeping systems and is willing to learn more about the nuances of your company.

3. How Often Can You Ask Questions?

Some accounting services only offer communication once or twice a year. You talk to your accountant at tax time, and then the conversation is over until the next tax season. While it is important to have an accountant who can help with taxes, you shouldn’t overlook the benefit of ongoing accounting and bookkeeping services to help your company throughout the year.

The best solution is to choose an accounting team that is always available to answer your questions. Ongoing support will make a big difference to your tax strategy, helping to minimize the amount of money that you need to pay in taxes.

4. Is the Accountant Honest and Trustworthy?

When you are handing over the financial information for your company, you need to make sure that you have a team that you can trust. Never provide password information for your financial system unless you know that you are working with a reputable team.

There are many scams in the business world, with thieves who are just trying to gain access to your bank accounts. So, it is important that you do your homework to learn more about the company that you are planning to hire. Research the business, look for online reviews, and ask around to make sure that you are picking a reputable team to help with your bookkeeping and accounting.

One way that you can determine the reputation of the company is by asking for references from other clients. Testimonials and reviews can shed light on the quality of service that you can expect if you hire the accounting team.

5. Will You Receive Reliable Services?

Ongoing accountant and bookkeeping services are essential so that you can stay ahead of the cash flow for your company. If you hire someone that procrastinates the work, then you will likely be facing a messy financial situation in the future. A better solution is to hire a team with a proven system in place.

The ongoing services depend on the needs of your company. You should have a consultation with the accounting team to discuss the services that are necessary. Then, a schedule can be designed to match your preferences. This schedule should include all of the important aspects of financial tracking, such as data entry, reconciliations, payroll processing, tax payments, tax filing, and more.

Reliability is also important to give you access when questions come up. Will you be able to get on the phone with your accounting team if you have questions about a financial situation? Reliability is not only consistency with the tasks that need to be completed. It also means that your accountant will respond when you contact the team for more information.

6. How Much Transparency Will Be in the Reporting?

If a mistake is made along the way, it is important that you have transparency in the reporting to identify the problems. Accuracy is one of the most important aspects of an effective accounting system. So, you need to make sure that you have the information readily available at any time.

Transparency means that you will be able to see the work that is being completed. You can also pull financial reports to understand the current cash flow standing of your company. Plus, the accountant will be available to explain the reporting and transactions so that you can be sure that everything is on track for the future.

This openness for communication is essential so that you have all of the information that is needed for the financial health of your company.

7. Do You Have Credit and Cash Flow Management Strategies to Use?

Instead of just tracking the transactions that move through the company, your accounting team also needs to look at the strategy that will impact the financial health of your business. Most companies have credit cards and lines of credit that are used to keep the business going. Debt can be an effective way to push through slower times. But, these balances can quickly get out of hand, making it hard to get on top of the cash flow once again.

Instead of spending a lot of money on business debt, you should talk to your accounting team to look for solutions to minimize spending and pay down the balances. These strategies will contribute to the financial health of your company. Not only will you be able to manage your cash flow more effectively, but you will also be able to stay ahead of future costs that might be incurred.

A healthy business will have an emergency savings account to cover any unexpected costs that might come up. Plus, there will always be enough cash flow to stay current with the anticipated bills that come through every month. Many business owners have a hard time putting together a system to stay ahead of bill payments and credit management. So, it is a good idea to hire an accountant who can help with managing these details.

8. How Much Do the Accounting Services Cost?

The cost of the accounting services needs to be analyzed, to make sure that you can support the payments that will be needed. If you are hiring an employee to manage in-house accounting work, then you will be facing expensive costs for the salary, benefits, office space, and more. For small businesses, it probably doesn’t make sense to bring on another employee.

Instead, a better solution is to find an outsourced accounting team who can help with your business finances. You will see that the costs of a small business accountant go down when you bring on an outsourced team instead of hiring an employee. Not only will you access the skills and services that you need, but you will be able to save money at the same time.

The great thing about outsourced accounting is that your accountant can be located anywhere in the country. Instead of being limited to a geographical location, your accountant can use technology to manage your bookkeeping online. Then, you have instant access to the reporting system so that you always have a current picture of the financial health of your company.

Do you want to learn more about the benefits of outsourced accounting? You need to talk to our team at Easier Accounting. We have been working hard to build a great reputation in the industry. You will see that our services are leading the industry, offering the best options that are needed for small business accounting. Call today to see if our services match the needs of your company: (888) 620-0770

Easy Tax Credits for Small Business Owners

Do you own a small business, or you have plans to start a business venture in the future? There are many financial aspects that need to be considered to ensure the success of your company, and it is important that you look for tax credits to reduce your tax burden. Working with an experienced tax accountant is one of the best options that you should consider, and you need to make sure that your accountant has worked with many other types of small business owners.

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Do-It-Yourself vs. Hiring an Accountant

Some small business owners want to save money, so they go through the hassle of trying to do their taxes without consulting an accountant. Even though it might seem like a good solution, the truth is that it is likely costing you money if you don’t work with a small business accountant!

First, it is much faster to hand over the financial details and let the accountant work through the tax preparation and filing. You have plenty of other responsibilities to focus on, and you shouldn’t be spending your time trying to figure out the tax code.

Additionally, many inexperienced business owners overlook tax credits that could be used. If you aren’t familiar with the different types of write-offs that are available, then it is likely that you are paying more in taxes than you need to. Instead of paying the higher taxes, you should invest a little bit of money into an accountant. These services are worth their weight in gold, especially when you see how much money you will be saving when it is time to cut the check for the annual tax payment.

Types of Tax Credits for Small Businesses

These are some of the common tax credits that can be helpful for small businesses:

  • Office Supplies and Equipment: Is there anything that needs to be purchased for the office? If you have been thinking about a new computer, right now is a great time to make the purchase and use it as a tax write-off.
  • Disability Tax Credits: Do you have an employee on your team suffering from some type of disability? If you are incurring additional costs to make the business more accessible for someone with a disability, then it might be possible to write off those expenses.
  • Maximize Retirement Contributions: Self-employed individuals can maximize the funds that are contributed to a retirement fund to reduce their tax burden.

The best thing that you can do is talk with an accountant to learn about the tax credits that are applicable for your situation. For more information, talk with our team at Easier Accounting: (888) 620-0770

Is Your Company at Risk for an IRS Audit?

An audit can be a stressful and unpleasant situation to deal with, and many small business owners are worried that the IRS might audit their financial records. The likelihood of auditing varies depending on the type of business that you have and the numbers that are coming through on your tax return, and it is essential that you work closely with an accountant at all times. An experienced accountant can help you to avoid the audit in the first place, and they can assist with the required tasks if an audit occurs.

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Business Categories with a Higher Risk of Audit

The IRS does not share information about the types of companies that they audit. But, there are a few trends that have been noticed and it seems like certain categories have a higher audit risk. These are a few red flags that might potentially trigger an audit:

  • Small Companies: Generally, small companies don’t have good systems in place for financial tracking and records. It is also likely that the company doesn’t have a financial professional to help them stay in compliance with tax laws. The audit rate might be even higher if the company receives most income in the form of cash.
  • Business Travel, Entertainment and Meals: It is essential to have the paperwork to back up these expenses, and most small businesses don’t keep the proper records. If you are writing off large sums for business entertainment and meals, then the IRS might thing that you are writing off personal entertainment and calling it a business expense.
  • Schedule C Losses: Do you have a tax return that shows a high salary in conjunction with a Schedule C loss? This situation might be a red flag to the IRS. Typically, a Schedule C activity is a hobby instead of a business, especially if the activity is a personal pleasure, such as travel writing, photography, sports, etc.

IRS audits can be unexpected, and the best thing that you can do is hire a good small business accountant to ensure that you are staying within the tax laws. Prevention is the best solution, to help you avoid problems if your business is audited.

Here at Easier Accounting, we are experienced with all types of small business finance. We are here to help with anything that you need, and we invite you to contact our team to learn more about the services that are available. Call us right away: (888) 620-0770

Do You Need a Bookkeeper to Help with Payroll Processing?

Payroll processing can be a time-consuming task, and some business owners have a hard time keeping up with everything that needs to be done. It is essential that you are consistent and accurate with payroll, because paycheck distribution will have a direct impact on employee satisfaction.

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Do-It-Yourself Payroll

Some companies choose to handle payroll in-house, but it is essential that you have a solid system and the right team to help with the paychecks. Missing hours, late paychecks, or any other errors might cause employees to be frustrated with their work. These problems can lead to higher turnover, which can be damaging to your company.

If you are handling payroll on your own, then you might consider the benefits of hiring a payroll service to help instead. In fact, many business owners find that they can actually save money by using a payroll service instead of paying a high salary for an in-house bookkeeper or accountant.

Payroll Service Benefits

When you hire a bookkeeper or payroll service to help with payroll processing, you will see that there are a number of benefits that you will be able to enjoy. Outsourcing these tasks helps to increase the accuracy of the payroll distribution, especially if you are working with a trusted company with a lot of experience in bookkeeping and payroll processing.

Additionally, you will see that hiring a bookkeeper to help will be beneficial to free up your time in the office. Instead of worrying about the details of payroll calculations and distributions, you can focus on the other things that need to be done. Business owners have a lot of responsibilities, which is why it is best to outsource the busy work to the professionals instead.

When you hire a payroll service or small business bookkeeper to help with payroll processing and calculations, your stress levels will drop. Financial professionals can keep the business running by managing payroll, invoicing, and other financial services. So, you can focus on building the business and expanding for future growth.

At Easier Accounting, we are here to help with any type of bookkeeping or financial assistance that you need for your small business. We invite you to contact our experienced team today to learn more about the services that are available. We will talk with you about your goals, and put together a plan that will work best for your needs. Call us right away for more information: (888) 620-0770

Hiring Independent Contractors? Don’t Forget These Important Steps

It is easy to see why business owners frequently hire independent contractors instead of hiring an employee, because a contractor can be beneficial to reduce costs and provide a temporary relationship when the skills are needed. You can pay for specific projects and tasks, instead of having the hassle of bringing on a full time employee.

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If you are hiring independent contractors to help with your business, then there are a few things that you need to keep in mind. These important steps will ensure that you are following the laws and staying compliant with your workforce:

Ask for a Signed W9

You need to be sure that the person can work in the United States, so you should ask for a copy of their W9. This form will verify that they are a US citizen or resident, and you will have the peace of mind to know that you aren’t hiring an illegal. This form will provide the tax information needed that will be used when filling out the 1099 at the end of the year.

Submit a 1099

At the end of the year, you need to send a 1099-MISC form to any contractor who earned more than $600 during the calendar year. This form needs to be provided to the contractor, and you also need to send a copy of the form to the IRS. It is essential that the contractor receives their copy by January 31st, or the next Monday if the 31st happens to be on a weekend. The IRS copy needs to be sent by the last day in February.

Maintain Good Records

Make sure that you keep up with records throughout the year, so that you have information about the work that was performed and how much was paid to each contractor. For example, keep copies of the invoices that were provided, as well as information about the payments that are sent. The easiest way to handle these details is by hiring a small business bookkeeper to help with ongoing accounting and record keeping.

Have a Signed Agreement

Before the contractor starts working on the project, it is best to have a signed contract in place. This contract will keep you protected, and it ensures that all parties are on the same page with the work that will be delivered.

Do you need help with the financial side of running a business? We are here to help! We offer a number of bookkeeping services and other accounting services, and we invite you to contact us anytime to learn more about how your business will benefit: (888) 620-0770

How to Streamline Your Business Finances

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

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Automate If Possible

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

Cut Out the Paper

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

Hire a Bookkeeper and Accountant

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

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

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

Simple Strategies to Reduce Stress during Tax Season

Tax season can be a stressful time for small business owners, especially if you haven’t been consistent with financial tracking throughout the year. As we are approaching tax deadlines, it is important to consider the financial standing of your company. Don’t get stressed out by the process though! Here are a few things that you should do to minimize the stress during this time of year:

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Gather Information about Expenses and Profits

Your accountant will need help with the financial details for the year, so you need to make sure that you are ready to provide the necessary reports and numbers for the tax filing. Make sure that you have an effective system in place which will help you to stay on top of the books, making it easy to gather the information that is needed when it is tax time. Many people find it beneficial to hire the services of a small business bookkeeper to manage these details on a weekly or monthly basis.

Double Check Employee and Contractor Info

As you are preparing W2s and 1099-MISC forms, it is a good idea to double check employee information before sending out the forms. Having an old mailing address or incorrect information can result in a situation where the employee doesn’t receive the necessary tax forms, so they will contact your company requesting to have the forms re-sent.

Save your company time and money by double checking the employee information in advance, to ensure that the form is sent to the right place. It is a good idea to have each employee verify the mailing address, name, and social security number.

Evaluate Employee Benefits

How effective are the benefits that you are offering to employees? Many small business owners get the benefits setup and then they forget to maintain these details on an ongoing basis. Look at details such as paid time off, flexible spending accounts, retirement accounts, and bonuses that were paid during the year. Make sure that the benefits were administered correctly and that the benefits are entered correctly on the tax forms.

Are you looking for someone to help with your company during tax season? One of the best ways that you can lower your stress levels is by hiring the right team to assist every step of the way. Here at Easier Accounting we offer both bookkeeping and accounting services for your small business, and we would love to help with anything that you need. Call us today for more information: (888) 620-0770