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How to Avoid the Headache of Small Business Accounting

How do you feel when it is time to manage the accounting tasks for your business? Most small business owners don’t have experience with financial management, and they dread the thought of tracking financial details, reconciling the accounts, or preparing tax paperwork.

If you get a headache just thinking about these accounting tasks, then right now is the perfect time to hire an experienced accounting team to help. By outsourcing the accounting, you can focus your time and efforts on other responsibilities within the company instead.

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Here are a few things that you need to do to avoid some of the common problems that cause accounting headaches:

Outsource the Accounting Tasks

There is no reason that you need to handle the accounting on your own! Hiring an experienced team can make a big difference to free up your time. At the same time, you will have higher quality financial reports and details about the health of your company. This information can be very important when you are making big financial decisions.

Get Rid of the Papers

Is your filing cabinet overflowing with old papers like bank statements and invoices? This information can be a hassle to keep up with, especially if you have a lot of paperwork moving through your office each day. Consider implementing a digital system to keep track of all of the transactions using technology. Then, certain invoices, receipts, and other documents can be printed if you need to keep a physical file on hand.

Ignoring Cash Flow

What do you do when it is time to cut paychecks, and there isn’t enough cash in the bank? If you aren’t proactive to manage the financial health of your company, then you might be facing big cash flow problems. These moments can be stressful! Even if you have payments coming in later this month, it won’t help at the moment when employees want to deposit their paychecks. Talk with an accounting team to learn more about cash flow management so that you can avoid these stressful situations.

Manual Accounting

Spreadsheets and handwritten books are a thing of the past. Instead of manually entering each line item, it is better to have a good system in place that will digitally track your expenses and income. There are many software programs designed to help small business owners, and you can talk with your accounting team about the right software program for your company.

Right now is a great time to put away the headache medicine and call an accountant instead. Contact us at Easier Accounting to learn more about how we can help your small business: (888) 620-0770

Avoid These Common Financial Mistakes Made By Small Business Owners

Starting a small business is exciting and stressful at the same time, and some people compare it to a roller coaster ride. When you start a new venture you can expect to experience some great opportunities, but there are some common mistakes that might pop up along the way as well.

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Since the stakes are high, it is essential that you are careful to avoid these common mistakes so that you can create long-term growth for your company. Here are the 3 biggest mistakes that you can avoid:

Classifying Employees Incorrectly

Do you know the difference between an employee and a contractor? It is essential that you talk with an accountant to understand these differences, because the classification impacts the way the payments are handled. If you classify an employee incorrectly as a contractor, then it is possible that you might have to pay back wages and penalties.

Lack of Automation

Are you still trying to do everything by hand, because you don’t have a good financial system in place? It might not seem like a big deal to track payroll, invoices, and other financial information in a spreadsheet. But, these activities are eating away at your productive time each day. Instead of trying to track everything by hand, it is better to implement a good financial system from the beginning. It’s much easier to use automated systems right now, rather than wasting time with manual tracking and then trying to transition everything to an automated system later on.

Cash Flow Problems

It is common for a small business to be over-extended, making it hard to come up with the cash flow that is needed to keep the business running. If you aren’t staying up-to-date with finances, invoices, and bank account balances, then you might find yourself in a world of hurt when you need cash to restock inventory or pay your employees. Instead of making knee-jerk reactions every time you need to make a financial decision, it is better to stay current with your financial tracking systems so that you always have current financial information about your company.

The easiest way to stay current with your small business finances is to hire a professional to help. In fact, many business owners find that hiring an accountant or bookkeeper to assist with financial tracking is a way to decrease costs and boost the success of the business. Here at Easier Accounting, we offer the accounting and bookkeeping services that you need. Call us to learn more: (888) 620-0770