How-To Guide: Tips to Improve Your Business Bookkeeping and Accounting

If you want to improve the results for your company, then you need to take it back to the basics by upgrading the systems that influence every aspect of business management. By creating the right foundation with good business bookkeeping and accounting practices, then you can make a difference with the long-term success that is possible. The key is to pay attention to the details and hire the right team to assist with the implementation.

Many business owners have good intentions to improve critical systems, such as financial reporting and accounting details. But, it is common for these activities to fall to the backburner because the attention is focused on immediate needs. It is easy to ignore the stack of paperwork that needs to be addressed when you are spending your time talking to potential customers and business contacts. Instead of procrastinating these efforts, you need to understand the importance of good systems so that these things are pushed to the top of your priority list.

Common Options to Improve Business Bookkeeping and Accounting

Even though you know that your business bookkeeping and accounting systems need to be improved, where should you start? You need to think about the overall system as well as the ongoing tasks that should be addressed on a daily, weekly, and monthly schedule.

Here are a few common practices that need to be considered if you are looking for ways to improve your accounting and bookkeeping:

Practice #1: Common Understanding with Vendors and Business Contacts

It can be a challenge to juggle the invoices that are coming and going when you have different systems in place for business contacts and vendors. For example, are some of your vendors stuck in the old process by sending invoices through the mail? We live in a digital age, which means that hard copies are no longer necessary. There’s no reason why you need to hold onto the paperwork.

Talk to your vendors to see if they offer digital invoicing. Then, make sure that you have the right system in place to keep the files sorted when they come through. For example, all of the invoices should be sent to the same email address. Next, the attachments need to be imported into the accounting system or saved in a cloud storage folder for future reference if needed.

Creating the same system and understanding with all of your business contacts can help to simplify the work that needs to be done in your office. It takes a little bit of effort to systematize this process, but it is worth the long-term benefits that are available.

Practice #2: Identify Bad Practices

Are there any bad habits that are dragging down efficiency or impacting profit margins? You need to evaluate the things that should be changed so that you can work on optimizing processes for the future. Sometimes, it is easy to overlook these bad practices when they become a normal part of your business activities.

The best solution to find the bad practices is to bring in an outside perspective to evaluate the way you are handling your regular activities. For example, important tasks might be falling through the cracks if you aren’t tracking the progress of various projects or invoices. Or an accounting team might help you find unnecessary costs that can be dropped so that you can minimize your overhead expenses.

Even though the changes might seem small, they can have a significant impact on the success of your company in the future. If you want to improve your results, then you need to improve the way you are managing all of the details in your company.

Practice #3: Be Clear about Bookkeeping Duties and Responsibilities

One of the most common reasons why important tasks are overlooked is that people don’t take responsibility for the things that might be handled by another employee. Don’t wait for employees to step up and take ownership for essential tasks, such as reconciling the books or sending invoices. Instead, you need to choose the people who should oversee the task and ensure that everyone takes personal responsibility for the areas where they are assigned.

You might have in-house employees who can help with bookkeeping, invoicing, and more. Or, you might choose to outsource these services so that a professional company takes responsibility for the tasks that need to be completed. It’s up to you to choose the system that will work best for your business. At the same time, be clear about expectations so that employees or contractors take the lead on their responsibilities.

Practice #4: Use the Latest Automation Features

Automation can have a transformational impact on your accounting and bookkeeping practices. If you are stuck in old habits and systems, then right now is the perfect opportunity to make the changes that are long overdue.

We live in a world of technology, which means that you need to be looking for options that fit your industry. There is no reason why your employees should be spending time on tasks that can be automated. For example, some businesses still practice data entry for every transaction that moves through the office. But, often these transactions can be automated by syncing the bank accounts and credit cards with the bookkeeping system.

A good bookkeeping system will pull in the transactions and even set up categories based on your predefined parameters. This automation reduces the need to spend valuable time on busy work. Instead, you can let the system handle the details so that you can focus on other aspects of growing your company.

Practice #5: Managing Inventory and Spending

It is common for businesses to get caught in the trap of overspending and poor management of cash flow. If you are spending too much on inventory and business management, then you will be able to see the trends in the reports. But, if you don’t have a good reporting system in place, then it means that these important details are probably slipping by without the attention they deserve.

Make sure that you always have the right amount of inventory on hand. Even though you want to bring in a large amount of inventory so that you never run out of products that can be sold, you might accidentally burn up your cash flow with products that won’t be sold for a while. So, it is important that you manage your spending by being careful with the amount of inventory that is purchased.

Also, look for other areas where you can reduce overall spending. Can you identify spending patterns that aren’t essential for business growth and management? There are often simple solutions that can be used to reduce overhead costs so that you can minimize your spending and maximize profit margins simultaneously.

Practice #6: Plan for Big Expenses

Even though business might be good right now, you never know when an unexpected expense will pop up. You can’t predict when an emergency might happen. But, you can always expect that something will happen eventually. So, you need to be sure that you are ready with money in the bank when these details need to be addressed.

Upcoming big expenses might be accrued for a variety of reasons, such as tax responsibilities, inventory purchasing, equipment and computers, employee payroll, and more. It takes money to run a business, so you need to think ahead to ensure that you always have the cash flow to keep things rolling. It is wise to have a few months of business expenses set aside as an emergency fund.

This emergency fund can be used for one-time costs that might come along. At the same time, the emergency money can also be helpful to get you through the lean times if things slow down in your industry.

Practice #7: Hire the Industry Experts

There’s no reason why you should reinvent the wheel when industry experts have already created and improved the systems that can be used for business bookkeeping and accounting. If you are looking for the right solutions to improve your company, then you need to turn your attention to the advice offered by the experts.

We’ve been offering these services for many years, giving us the experience and education to know the best ways to maximize the results from accounting and bookkeeping. When you choose our experienced team, you can tap into the knowledge that we will share about the options that are available for your company. As we have helped other small businesses, we’ve gained the knowledge and information required to ensure the long-term results that you deserve.

Why Easier Accounting?

Why should you enlist the services that are offered by our team at Easier Accounting? We know that you have many options for accounting and bookkeeping services. But, our team is working hard to provide the custom results that are best for small businesses and startups. If you are looking for assistance with payroll processing, bookkeeping, tax preparation, and more, then you need to contact us as soon as possible. We are here to help so that you have the best options available for your industry: (888) 620-0770

Accounting Trends that Need to be Incorporated into Your Small Business

Our business world is constantly changing, so it is essential that small business owners take a proactive approach to keeping up with the trends. Have you integrated modern practices into your business, or are you still stuck in the past?

The digital world is always progressing, making it possible for businesses to innovate faster than before. You can reshape your company to set up for future success. The foundation of these efforts should be focused on financial and business systems. By implementing these systems, you create an environment that is conducive to growth and prosperity in the future.

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How do you keep up with the trends? The easiest solution is to have a trusted accounting team that stays up-to-date in the industry. These advisors can make recommendations about how you can improve your business practices. Here are a few suggestions that we would like to share, helping you to stay current with the trends in the accounting industry:

Implement Cloud-Based Accounting Software

Whether you are still working in physical ledgers, Excel spreadsheets, or a single-computer software, you are behind the times! These systems might have worked in past years, but better solutions are available to automate and improve your accounting system.

The problem with these outdated accounting practices is that everything needs to be managed by hand. Without the advantage of cloud storage and data syncing, you are stuck with manual updates every day. In comparison, cloud-based accounting software is always current. You will see accurate numbers across the board, no matter where you are accessing the information. As an added bonus you can view your accounting details from anywhere in the world!

If you aren’t already using a cloud-based accounting software, then right now is the time to make the change. An experienced accounting team can support with the transition, making it easier than ever to improve your financial system.

Accountants Offer More than Just Tax Preparation

Too often, business owners get stuck in the thinking that they only need to talk to their accountant once a year: when it is time to file their taxes. It is important to have the support of an accounting team for tax preparation, but you should also use the services of your accountant during other times of the year as well.

For example, your accountant can help with ongoing payroll processing, estimated tax payments, financial advising, and more. By outsourcing the financial details to an experienced accounting team, you will have full access to detailed information that will help your business grow. As a result, you can focus on making the management decisions instead of spending your valuable time crunching numbers.

Take control of your time by hiring a great accounting team to help. By using an experienced accountant in conjunction with cloud-based software, you can outsource the busy work and still have real-time access to financial reports and other information throughout the year.

Outsourced Accounting Instead of an In-House Employee

How much does it cost to hire an employee to manage your financial details? Tally the expenses of office space, equipment, salary, benefits, taxes, and more. You will see that the cost of these accounting services can really add up!

Instead of spending your business profits on a full-time employee, consider the benefits of outsourced accounting services. As a result, you will have access to a full team of accounting professionals. This choice gives you the ability to tap into real-world experience since the accountants are also working with other small businesses.

What types of tasks should be outsourced? The possibilities are endless! Don’t overlook the benefits of hiring a business bookkeeping service, a team to help with tax planning, and small business accounting and financial advice.

By outsourcing your accounting needs, you can save money and have access to better knowledge and experience compared to hiring a single employee. The digital world has removed the barrier of location, giving you access to the best talent located anywhere in the country.

Take Advantage of the Millennial Mindset

As you are transforming your accounting system or any other aspects of your business, consider the benefits of taking advantage of the millennial mindset. What does that mean? Hire employees and outsourced teams that are approaching business in a modern, unique way. The millennial generation has radically changed the business industry, creating an environment where the possibilities are limitless.

If you choose to only work with the older generations, then you might be missing out on some of the technology trends that could be incorporated into your company. Make sure that every team is staying connected with the digital world so that you can use these tools as much as possible to promote the future growth of your company.

Working with an accounting team that has a millennial mindset can be beneficial so that you can see the financial future of your company in a different way. As a result, you can make better decisions about the spending and investments of your small business.

Focus on Specialization

Instead of trying to offer something for everyone, consider the advantages of specialization in your company. You can hire specialized outsourcers who offer unique perspectives and experience to add to your company. At that same time, consider your own products and services to see how you can specialize your offerings.

In the past, companies would often hire one employee who would manage a variety of tasks throughout the day. For example, a general employee might be handling payroll, product ordering, office logistics, and a variety of other duties. This lack of specialization often has a negative impact on overall results. Instead of asking individuals to be proficient in 10 different things you can boost performance by hiring specialists that are experts in one skill.

Outsourcing makes it possible for you to build a team of specialists. For example, you might have an accounting team that handles the financials for your company, a customer service team to work on client relationships, a product management team that focused on production, etc. By creating a system, these specializations can work together to create better results compared to a handful of employees trying to handle everything.

A one-size-fits-all approach doesn’t work anymore. If you are stuck in the cookie-cutter way of building your business, then you will be missing out on innovative options that can help with the transformation of your company.

Prepare Your Exit Plan

Building a business seems like an option to create a long-term income for your family. After the hard work and sweat equity, many small business owners have an emotional attachment to the company they have built.

While it is important to stay involved in your company, you also need to look for options to build in an exit plan. In many situations, the most profitable solution is to build a company that can be sold. Technology and web-based companies have made it easier than ever to connect with a potential buyer. Timing the sale of your company can be the best way to maximize your investment.

After the company is sold, you might choose to invest the money into other business opportunities. Or, the money could be invested into retirement funds or other options to plan for the future.

Having a trusted accounting team by your side is one of the most effective ways to build an exit plan. Your accountant can offer logical advice based on the numbers. Since your accountant doesn’t have the same emotional attachment to the company, you can tap into their perspective to improve the results from your efforts.

Talk to an Experienced Accounting Team

Here at Easier Accounting, we work hard to keep you ahead of the trends in the business, accounting, and financial industries. Our team specializes in small business accounting services, so we know the best practices to help your company prepare for the future.

As these changes happen in the accounting industry and the business world, you need to be sure that you are prepared to keep up with the trends. Failing to take a proactive approach could potentially leave you in the dust, with your competitors thriving as they made the necessary changes to adapt.

Our team at Easier Accounting wants to help you stay relevant in your industry. We are always working to stay ahead of financial and accounting trends, giving you access to the best solutions and tools that are available in the industry.

These services can be catered to match your individual needs. If you are looking for help with the financial management of your company, then we invite you to contact us right away to learn more about how we can help. You will see that we have a wide range of services for your company. When you contact our team, we will discuss your individual needs to help you identify the best solutions to move your business forward.

Do you have any questions? Feel free to contact us anytime for more information about the small business accounting services that we offer: (888) 620-0770

My Business Books are a Mess! How to Get Back on Track

Every small business owner starts out with the best of intentions, but heavy responsibilities and busy schedules often cause important tasks to fall to the backburner. Do you feel like you are drowning in paperwork and emails that need your attention? If you are unable to keep up with everything, then you need to make sure that you find the right business professionals to help.

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Big Business Mistake: Procrastinating Bookkeeping and Accounting

One area that is often neglected is the financial tracking of a company. You might be paying a monthly or annual fee for a high-quality accounting software program. But, that system isn’t effective unless you are using it right.

The most common reason these tasks are procrastinated is that there are other responsibilities that are more demanding of your time. You only have so many hours in a day, which means that the highest priority tasks will take over your focus. If you are dealing with product management and immediate customer service needs, then the data entry and busy work will naturally fall to the backburner.

But, failing to keep up with these important tasks is a big mistake! Letting your financial tracking slip can cause compounding problems in the future. Without detailed information about the financial health of your company, you won’t be able to make informed decisions for your company.

These are a few signs that it might be time for you to hire a small business accounting team to help:

  • Your monthly reconciliations aren’t happening
  • You have a big folder or box of unsorted receipts that need to be entered and filed
  • You never know the exact standing of your bank accounts
  • You have a hard time paying bills because of cash flow issues
  • You are scrambling at tax time to prepare all of the necessary information for tax filing
  • You have a backlog of data entry for expenses and income received
  • You don’t bother running financial reports because you know the numbers will be off

Can you relate to any of these issues? If these things apply to your current situation, then it is time for you to be proactive in hiring an experienced accounting team to help!

Where to Start: Reclaiming Control of Your Accounting System

You can spend a few hours sorting through paperwork and line items, but your progress will be limited if you aren’t tapping into the experience of an accounting professional. Without an accounting background, you won’t have the knowledge to effectively implement a system that is built to last.

Instead of wasting your time trying to reinvent the wheel, why not hire someone who knows what they are doing? Their experience can bring a system that will be transformative for your small business. It is much more effective to implement a proven accounting system, rather than trying to build it from scratch.

So, the first place to start is by hiring an accounting team to help with your business. Here at Easier Accounting, we focus specifically on small business accounting services. We have worked with many clients, giving us the hands-on experience to know what works. So, we can make suggestions about the best solutions to get your company back on track again.

Employee vs. Outsourced Accountant

Now that you know that you need to hire someone to help, does it make sense to hire an employee or to choose outsourced accounting services? If you aren’t familiar with outsourcing, then you might be tempted to go with what you know and hire an employee. But, you need to understand the financial burden that you could be facing with a full-time employee. Outsourced accounting can help you save money and maximize the experience of your new team at the same time.

Most accounting software programs are cloud-based systems. So, you are no longer limited by geographical location. Regardless of your business location, you can work with an accounting team located anywhere in the world. Without the barrier of in-office support, you can choose the team that is the perfect fit for your company.

Dedicating Time and Resources to Get Back on Track

Once you have hired an outsourced accounting team, you will need to spend a little time to provide the necessary information for your company. Your accountant will request details about your bank accounts, credit cards, transactions, and more. This information needs to be sorted into an organized system, and your new accountant won’t be able to get it done without your help.

So, make it a point to spend a little time gathering the requested information. After you have handed off the details, then you can focus on other responsibilities within your company.

Prioritize Your Business Financials

Going forward, it is essential that you make bookkeeping and accounting a big priority for your small business. Failing to hold these tasks as priorities means that you could quickly fall behind again and end up in the same mess in the future.

Most business owners have too much to do, making it difficult for them to prioritize financial tracking on their own. So, the best solution is to have ongoing accounting and bookkeeping services that can help you stay current at all times. These experts will make it possible for you to always have accurate financial information without the need for you to find time for the busy work on your own schedule.

Having the right maintenance system in place is essential for the long-term success of your company. It is important that your books are maintained on a weekly, monthly, quarterly, and annual basis. If you have a lot of transactions moving through, then you might need to manage your accounting system on a daily basis. Once the system is in place, then these ongoing services will be easier to manage going forward, helping you to avoid falling behind on the books again.

Why are these tasks so important to the success if your company? Cash flow is critical to keep your business running so that you can stay ahead of payroll, expenses, and other requirements. Without a good accounting system, you won’t know the current cash flow of your company. As a result, you might be facing big issues in the future!

Expanding Business Success with Accounting Services

Not only will an experienced accounting team help you clean up your books and offer ongoing services, but you can also tap into their experience to expand the success of your company in the future. You will begin to see the value in consistent accounting management, helping you to make better decisions based on the financial projects for your company.

A financial forecast can be worth its weight in gold. By staying ahead of the bookkeeping busy work, you can move from “reactive” mode to being “proactive” to help your business grow. Messy books will put you in a situation where you are always working to put out the fires that come up. On the other hand, an organized accounting system will help you proactively plan for the future. When the current financial details are handled, then you can focus your efforts on the forward movement of your company.

How much of a financial forecast do you need? The requirements change depending on your individual situation. These reports will allow you to identify potential cash flow pitfalls in the future. At the same time, you can also make adjustments that will fast-track the success of your business. A solid accounting team can help you reach your goals and plan for big investments that will be needed in the future.

Easier Accounting: The Best Accounting Team for Your Small Business

Here at Easier Accounting, our team works hard to stay ahead of the trends in the industry. We specialize in small business accounting services, giving you access to the financial experience that you need to help your business succeed.

We are more than just a basic team of number crunchers. Instead, we are looking for ways that will support the growth of your company, offering advice and suggestions along the way. Our goal is to design an effective system that is catered to your individual needs. Then, we can implement ongoing accounting services that will keep you ahead of the financial stress related to owning a small business.

Instead of spending your valuable time on bookkeeping and accounting busy work, consider the benefits of the services that we offer. We will gladly offer that support that you need so that you can focus on growing your business without the stress of daily busy work. Our full-service accounting and bookkeeping team is a great solution to help you get back on track and stay ahead of the financial management for your small business.

Whether you are behind on your books or you are ready to improve the financial success of your company, we are here to help! Contact us at Easier Accounting for more information about the services that are available for you: (888) 620-0770