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.

Hiring an In-House vs. Outsourced Accounting Team

Bookkeeping and accounting are essential for every business, and there are many opinions on the right ways to find the services that are needed. If you are starting a business or you can see that your bookkeeping and accounting systems need a bit of TLC, what is the right approach? You can hire an in-house bookkeeper or accountant, or you might consider the benefits of choosing an outsourced accounting team.

The pros and cons of each option vary, especially based on the person or team that you choose to hire. Today, we are sharing a bit of information about hiring an in-house employee vs. an outsourced accounting team so you can the best way to meet the needs of your company.

Common Problems with In-House Employees

There are potential benefits that come with having a bookkeeper or accountant in-house. Many business owners choose this approach because they want to feel like they have control over the way the books are being run. While it is important for you to know what is happening in your business finances, one of the best things that you can do is hand the financial responsibilities over to an industry expert.

While benefits can be enjoyed if you hire an in-house bookkeeping or accounting team, you will also face serious issues that can arise. Here are some of the most common problems faced by businesses who choose in-house accounting and bookkeeping:

  1. High Costs: Look at the numbers, and you will see that it’s far more expensive to bring another full-time employee onto payroll. Not only do you need to pay for the person’s salary, but other overhead expenses should be considered as well. The fully-burdened cost of another employee includes insurance coverage, paid time off, office space, computer and office equipment, ongoing training, holiday pay, and more. When you compare these costs with the price of hiring an outsourced accounting team, you’ll find that it is much more affordable to choose outsourcing.
  2. Hiring, Onboarding, and Training: How much time and effort goes into the recruiting process when it’s time to hire a new employee? It can be a burden to go through the process of posting the job opening, interviewing candidates, bringing them into the company, and then training the person on systems and procedures. On the other hand, an outsourced team of accountants already has proven systems in place. When you choose these services, your business doesn’t need to worry about onboarding or ongoing training.
  3. Wasted Work Hours: The hope of every business owner is that employees will perform optimally throughout the day. But the truth is that water-cooler conversations are bound to happen, which means that you are paying someone even when they are on the clock and not choosing to be productive. On the other hand, outsourced accountants only charge for the billable time spent on your business, so you don’t need to worry about unnecessary costs for wasted time.
  4. Low Quality of Work: Accounting and bookkeeping aren’t simple tasks. The person needs to stay fresh with mathematical skills, attention to detail, and industry experience. A single in-house bookkeeper or accountant doesn’t have the vast amount of experience that comes from an outsourced accounting team. As a result, you could be facing quality issues and even costly mistakes, which often slip by unnoticed in the office. Outsourcing means that you have services from a team of experts with knowledge about accounting in a variety of situations.
  5. Right Workload for an Employee: In-house accountants or bookkeepers often face workload issues. Either there isn’t enough work to keep the person busy, which means that a lot of paid hours go to waste throughout the week. Or, the business is growing so quickly that the person is unable to keep up… and the only solution is to hire another employee. You need to be sure that your accounting services can adjust to the needs of your company, which is why it can be beneficial to hire an outsourced accounting team that can adjust as your business grows in the future.

As you can see, the time and money investment of hiring an in-house accountant can be a burden on your business. If you want to save money and optimize the quality of financial services you are receiving, then hiring an outsourced accounting team might be the right solution for your business.

Additional Benefits from an Outsourced Accounting Team

A few points were mentioned above to show how outsourcing can be a solution to solve common problems that occur with an in-house employee. The benefits of outsourcing go beyond the information already listed in this article. Here are some of the other benefits you can expect if you choose to invest in an outsourced accounting team:

  • Pay for What You Need: Instead of committing to the cost of a full-time salary, outsourced accounting allows you to pay for what you need. For example, you might choose a monthly service plan that includes bookkeeping, payroll processing, and more. Then, if you need additional accounting services outside of the standard offerings, you can pay for what is needed. The ala carte approach with outsourcing will save you thousands (or even tens of thousands) of dollars every year. When you outsource, you know exactly what you are paying for, and there is no reason to overpay for time or services that aren’t required each month.
  • Access to Systems and Tools: Also, consider the value that comes from working with an experienced accounting team that already has proven systems in place. You can have confidence knowing that your accounting team is familiar with the top tools in the financial industry. These software programs can be a great investment to streamline your bookkeeping, reporting, and tax preparation. Pairing good software with quality accounting services is the most effective way to streamline and organize your business.
  • Industry Knowledge and Expertise: When you are working with an outsourced accounting team, you have a team of specialists who have a wide variety of expertise in the industry. The many years of experience exceeds the expertise you can get from a single employee. Also, consider the cost and time required to gain these specialty skills. It can be a huge burden to train in-house staff to develop the financial skills that you need and want.
  • Option to Scale in the Future: You can have confidence knowing that your accounting system can be scaled as your company grows over time. An in-house employee only has so many hours in the day, which means that you will eventually reach the limits of what that person can offer. If you anticipate that your company will continue to grow, then it can be valuable to have a full team of accountants who can help with your business efforts.
  • No Down Time: When an in-house accountant is sick or leaves on vacation, it means that you no longer have the support of a financial expert for your business needs. On the other hand, you don’t have to worry about downtime when you are working with an outsourced accounting team. If one person is away from the computer for personal reasons, then there are always other team members who can assist with your financial reports and accounts.
  • Minimizing Risk: Team effort is essential if you want to minimize the risk of fraud and theft. Leaving one person in your company to oversee all of the financial details means that you could be exposed to undetected theft. The best way to avoid fraud and the chance of someone stealing money is to have multiple people overseeing the project, with proactive checks and balances in place to identify red flags. An accounting team uses accountability and built-in security with account reconciliation. Having multiple people looking at the financial accounts means that issues will be identified in the early stages, so you can fix the problem and mitigate risk.

Bookkeeping and Accounting are Essential for Your Business

In the day-to-day workflow, it often feels like bookkeeping and accounting are burdensome for your business. The truth is that these financial services shouldn’t be a nuisance. Quality, accurate, organized financial systems are key if you want to enjoy business growth and success in the future.

You need to find the right system to ensure that you are prepared for whatever may come into your business. A strong outsourced accounting team can be an invaluable resource so that you have a good financial foundation for your company. Most business owners don’t have formal accounting or bookkeeping training, which is why it makes sense to hire the experts.

If you are considering the benefit of outsourced accounting for your small business, then Easier Accounting just a phone call away. We provide full-service accounting that can be catered to the unique requirements of your business. You don’t have to carry the responsibility of financial tracking without the support of an experienced team. Call us to learn more about the ways your business will benefit from our services: (888) 620-0770.

Small Business Tips: How to Manage Your Money

The ultimate goal of running a business is to not only offer quality products and services, but also maximize profits at the same time. Even if you understand your ideal customer and have a great marketing strategy in place, your business will fail if you don’t know how to manage your money. Money management will make or break your company, which is why you need to be intentional about the way you are structuring your finances.

Freedom Through Money Management

Too often, people feel like money management is another to-do item that needs to be added to a never-ending list of responsibilities. How can you keep up with the books when you are worried about business development, employee reviews, customer service, and more?

The truth is that a good money management system actually frees up your time, allowing you to focus on other tasks within the company. When you are using the right software, paired with an experienced outsourced accounting team, you don’t have to focus your effort on busy work and tax calculations.

Learning how to manage your money gives you the freedom to run your business in the best way possible. You always have a clear picture of your accounts, including both income and liabilities. This information optimizes the business decisions you make each day, which has a domino effect on improving your long-term results.

Money Management Doesn’t Have to be Overwhelming

If you don’t know much about finances or money management, then you likely feel overwhelmed at the idea of implementing a new system. This process doesn’t need to be complicated. Instead of trying to reinvent the wheel, you should lean on the advice offered by an experienced accounting team.

Your accountant can do the heavy-lifting to design and implement a new financial system for money management. Then, you simply need to learn the right way to use this system to support your financial goals.

Be Proactive in the Way You Manage Your Money

The key is to take a proactive approach in the way you choose to manage your money. Instead of always stressing over immediate bills and trying to “put out fires” in your bank account, you need to be thinking ahead and anticipating the upcoming costs.

For example, sometimes business owners make the mistake of spending money that is available in the bank account, when that cash should have been set aside for an upcoming tax bill. Even though the money is in the account right now, it doesn’t mean that it can be used for extra expenses or a new project. It is important that you consider your cash flow and have a specific system in place, so the money is saved and ready to go when the payments come up in the future.

Being proactive means that you aren’t making decisions based on a quick, limited snapshot of your current bank account. Instead, you are evaluating financial trends, looking at the way the cash usually flows through your account, and preparing for unexpected things that might come up in the future.

How to Improve Your Money Management Strategies

Here are a few simple steps you can follow to improve the systems you are using to manage your money. While these tips are geared for business money management, don’t overlook the benefits you can enjoy by also applying these tips in your personal finances as well.

  • Debt Evaluation: It is difficult to keep a business going without good debt, but the debt burden can become too heavy and eventually take down the company. How much debt are you carrying right now? What are your debt ratios? If the credit cards and lines of credit are creeping up, then it means that you are spending more than you are bringing in. Look for ways that you can cut costs, so you have more cash to pay down the credit lines as quickly as possible. Not only are these accounts demanding cash flow each month, but the balances are going up due to interest costs and fees.
  • Cut Unnecessary Costs: Take a real, honest look at how you are spending your money to find ways that you can reduce unnecessary line items. Don’t underestimate the power of trimming your expenses. Even the smallest monthly costs can add up over time, resulting in hundreds or thousands of dollars spent over the course of a year. Sometimes you can reduce unnecessary costs, such as switching service providers or eliminating monthly subscriptions that aren’t being used. Go through your expenses line-by-line and consider the value each expense is bringing to your company. Then cut anything that isn’t contributing to your business goals so that you can reduce your spending.
  • Create a Rainy-Day Fund: It is normal for all businesses to have busy and slow seasons. When sales are up and the cash is flowing, it is the perfect time to ensure that you are ready for the rainy days that are sure to come in the future. Creating an emergency fund means that you will be prepared if something goes wrong with a product shipment or you are facing repair work on your building. Having a 6-month emergency fund will give you peace of mind to know that you are prepared for whatever might happen in the future.
  • Separate Business and Personal Expenses: It’s easy to let the personal spending get mixed in with business expenses. Unfortunately, things get complicated if you don’t have a clear line drawn with your accounts. Make sure you have separate accounts and credit cards. Be deliberate in the way expenses are paid so that your bank statements are accurate in reflecting the money spent on the business. If you have disorganized records, then it means that you could be missing tax deductions and potential business growth opportunities in the future.
  • Purchases and Inventory Timing: When big expenses are coming up, such as inventory restocking, consider the way you can time the purchases to ensure there is enough money in the bank. For example, if you can avoid restocking inventory in the same month that a tax payment is due, then it helps to balance out your cash flow for the month. Don’t tie your cash up in too much inventory that just sits on the shelf and collects dust throughout the year.
  • Set Financial Goals: These goals need to be realistic and achievable. How much do you think you can bring in this year? What are your anticipated costs? Design a budget based on these financial goals. Remember to be conservative in your estimates so you have room for mistakes and issues that might pop up. Not only do you need to work through the numbers, but you also need to be sure that you have action steps to follow that will support future growth.
  • Don’t Miss Payments: Even when cash flow is tight, it is important to make sure that you are keeping up with all payments. Your budget and emergency fund will help by ensuring that you have money available when the bills are due. Be strategic and determined never to miss a payment! It might seem like a small thing to be late on a payment, but you need to consider the consequences that can occur if you aren’t diligent about payments that are owed. For example, missing vendor payments means that they might not be willing to work with you in the future, which could potentially hurt your ability to provide the products your customers desire. Additionally, on-time payments help you avoid costs due to late fees and interest expenses.
  • Ongoing Financial Strategy: After reviewing your current financial situation, the next step is to ensure that you have a plan in place so you are prepared for the future. This ongoing financial strategy should include details such as the use of a good accounting software, services from an experienced accountant, and daily/weekly/monthly tasks, so you don’t fall behind on your financial tracking and reporting. The easiest way to ensure that you are consistent you’re your financial strategy is by enlisting the services of an outsourced accounting team that offers full services throughout the year.

It’s never too early to get started on your new financial strategy. If you are struggling with money management, then the first step is to talk to an accounting team for assistance. Don’t be embarrassed about the current state of your business finances. Instead, be willing to ask for help so that you can improve your results and ensure that you are prepared for the future.

Talk to the Small Business Accounting Pros

Easier Accounting is leading the industry with personalized tax services for small business owners. We understand the challenges you are facing with cash flow, profit margins, and other financial aspects of running a company. You don’t need to carry the responsibility without support from an experienced, knowledgeable team. For more information about the quality outsourced accounting services that are offered, you are welcome to call us at any time: (888) 620-0770.

What to Look for When Hiring Outsourced Accounting Services

It’s no surprise to hear that good financial tracking will have an impact on the success of your company. Managing the way the money is flowing in and out of your business will affect cash flow and other important aspects of running a company. Too often, entrepreneurs don’t have the necessary professional training, which is why they turn to outsourced accounting services for assistance.

How You Will Benefit from Outsourced Accounting Services

Is it the right choice for you to hire an outsourced accounting team? Most business owners don’t take this decision lightly. Not only will you be spending money on the services, but you are handing over sensitive financial information to the accounting team.

Even though it takes trust to bring in an accounting team for help, you won’t regret this decision. Here are some of the benefits you can expect when you find the right outsourced accountant to help with your financial tracking and strategy:

  • Expert Advice: You didn’t spend years in college studying accounting and bookkeeping, and it isn’t likely that you have years of hands-on experience in the industry. One of the greatest benefits of an outsourced accounting team is that they bring industry experience to the table. You can team up with the financial pros to leverage this experience in a way that helps your company grow. Outsourced accountants know the right way to set up your systems. They can implement effective processes to improve the efficiency of your financial reporting. Also, an expert outsourced accounting team will tailor your services to meet your needs, helping you create a system that is scalable to help with future growth.
  • Compliance, Regulations, and Laws: Most people are bored out of their minds when digging into details about tax laws and financial regulations. In addition to the Federal requirements for tax filing, you also need to pay attention to local regulations for the city and state where your business is located. These laws change each year, which can make it a challenge to stay current. The easiest and most effective way to ensure that your business is in compliance is by hiring outsourced accounting services for assistance. Your accounting team is immersed in these laws and regulations each day, and they understand the ins-and-outs of implementation for your company.
  • Manage Cashflow: One of the biggest challenges you will face is managing cash flow to ensure there is enough money in the bank to cover upcoming expenses. Even though money is coming in through sales and transactions, there can sometimes be a gap between the time when the money is received and when your expenses need to be paid. You can be bringing in a significant amount of money and still feel the financial stress if you are leveraged to the point where you don’t have the cash flow available for expenses. Outsourced accounting services can be beneficial to help you with the implementation of an effective strategy to anticipate upcoming expenses and ensure that you have cash in the bank account for those needs.
  • Boost Productivity: How many hours per week are you spending on bookkeeping and accounting tasks? Taking a DIY approach for your business accounting means that you are burning precious hours that could be spent on other responsibilities. For example, if you are spending 10 hours per week on bookkeeping, then it means that you are missing out on 10 hours per week that could be dedicated to business development, customer acquisition, and more. Pass off the accounting and bookkeeping responsibilities to an experienced team so that you can focus your efforts on other important tasks.
  • Reducing Business Expenses: Tracking your transactions is one of the first (and most important) steps in managing your budget. When you can see where the money is being spent, it is easier to adjust your spending habits so that you can be in control of your business finances. Every penny spent on business expenses cuts into your profit margins. An outsourced accounting team can help you with the tracking and budgeting implementation to support your long-term goals.
  • Minimize Overhead: Also, consider the way outsourced accounting services can be used to minimize your overhead costs. When you can see that accounting skills are needed in your company, it is easy to mistakenly think that you need to bring in another employee to help. But adding another employee to payroll can be a heavy financial burden, especially for small businesses and startups. Instead of taking on the fully burdened cost of a salary and benefits, you can invest a smaller amount in outsourced accounting. These services give you access to the full range of skills that are needed, at a much lower cost.

As you look through this list, are you seeing why it is worth the cost to invest in accounting services? Now it’s time to make the investment in an accounting team that can help with your business goals.

Tips for Hiring Outsourced Accounting Services

Instead of hiring the first accounting team that you can find, it is beneficial to be strategic in the way you choose outsourced accounting services. Here are a few things that you should be looking for when you are comparing service providers in the accounting and bookkeeping industry:

  • Licensing and Certifications: Does the team that you are hiring hold the right certifications and licensing? Holding an accounting degree means that your accountant is a true professional. Many people can say they are experienced in financial strategy, but the certifications show the years of training and education that went into the accountant’s development.
  • Reputation: You are entrusting your financial information to the accounting team, so it is important that you can trust the company. Investigate the reputation of the company to be sure that you are bringing in a team that holds the highest levels of accountability when it comes to protecting your information. Reputation is a non-negotiable when hiring an accountant because the provider will have access to your financial information and sensitive details about your business.
  • Scope of Services: What services are needed for your company? You need to have clarity about the financial services that will support your goals, to ensure that you are hiring a team that provides the skills that are needed. You might have a handle on the ongoing bookkeeping tasks, so you just need an accounting team to fill in the gaps with tax strategy, tax preparation, and filing services. Or, you might be looking for full-service solutions that include payroll processing, bookkeeping, account reconciliations, financial strategy, and more. Find a team that fits your individual needs.
  • Experience and Specialties: For example, it can be beneficial to choose an outsourced accounting team that specializes in small business services if you are an entrepreneur or a startup company. Experience with larger corporate entities differs from the services needed for a small business.
  • Accounting Tools and Technology: Be cautious if an accounting team wants to implement a system that relies on manual calculations. We live in a modern business world with many online tools to support automation. A good accounting team will implement a proven software program that streamlines your transactions as much as possible, paired with professional services for bank account reconciliation, strategy, and more.
  • Pricing: Also, consider the amount of money that you will be spending on the services. Not only do you need to look at the price tag, but it is important that you consider the value and services provided for that cost. Remember that outsourced accounting services are an investment for your business. While it is important to be careful about the amount of money spent on the services, you also need to identify the way these services will boost profitability and help you save money.
  • Customer Focus: It is important that you can get someone on the phone if you have questions about your business finances. When you are hiring an outsourced accountant, ask about questions and ongoing support through the year. One of the biggest mistakes you can make is only talking to your accountant once a year… at tax time. You will gain the most value through working with an accounting team that provides communication, support, and strategy implementation all year long.

Is the Timing Right to Hire an Outsourced Accountant?

How do you know when you should make the investment in an outsourced accountant? Timing is important, so you should always consider the needs of your company.

The truth is that it is never too early to invest in accounting services. Even if you are in the earliest stages of launching your new startup, an accounting team can be invaluable to help you get started on the right foot.

Our team at Easier Accounting specializes in small business accounting services. We’d love to talk to you about the way our services can be used to support your business needs. If you are considering the option to hire an outsourced accounting team, then we invite you to contact us to learn more. Call right away: (888) 620-0770.

Modern Accounting: How to Ensure Your Business is Staying Current

Technology has improved the way business is done, making it possible to connect with customers and business contacts through the internet. If you want to maximize the success of your business, then you need to be sure that you are using modern accounting tools to support your financial tracking. What resources are used in your business systems? It’s a great time to talk to an outsourced accounting team to learn more about the processes that can be used to improve your business systems.

Whether you are looking for options to improve your tax strategy or you need to systematize payment collection from your customers, a few good accounting tools can go a long way to improve your results. Investing in the right accounting and bookkeeping software will help you tap into the resources that can be used to amp up your financial systems.

What is Modern Accounting?

Before the invention of computers and the internet, business owners tracked their transactions by hand. These accounting ledgers were used to record money/products that moved in and out of the business account, and most of the transactions were paid in cash. If you go back thousands of years in history, it is possible to find ancient records that show accounting and business tracking in the most basic forms.

Now, the business world has changed. Technology is a foundational aspect of supporting the needs of a company. If you don’t accept digital payments, then it means that your customers are likely going to head to your competitors. Not only do you need to integrate technology into your business systems, but you need to be sure that you are using the tools that are the right fit for your industry and individual needs.

Modern accounting means that you are using technology and accounting software programs to systematize your financial tracking. Every transaction that moves in and out of your account needs to be recorded. There’s no need to write these things down by hand. Instead, you can leverage the automation of modern accounting software programs that take care of the tracking for you.

Even the accounting systems that use the most advanced technology available in the accounting industry are designed with double-entry bookkeeping systems. This approach means that there are always two entries for every transaction: debits and credits. Double-entry accounting dates as far back as 1494, but it’s only been in recent years that these systems have been automated through software programs.

Accounting is the Language of Business

The best way to communicate detailed information about your business is to have the option to run financial reports regarding the profitability of the company. These financial details are required if you are looking for investment money or partnering with other businesses. At the same time, these modern accounting reports can also be used to assess the current snapshot, giving you information that will support decisions that are made regarding cash flow, spending, and hiring.

As the accounting industry continues to evolve through technology, it is impossible to know how these business practices will change in the future. We can’t even imagine the possibilities that lie in the future! The most important thing that can be done is to ensure that you are keeping up with current accounting trends so that you are on track with the way systems are changing with time.

Using a modern accounting approach for your business doesn’t mean that you are on the cutting-edge of all payment technologies. Sometimes, being the first to implement new technology might not be the best investment if others aren’t using the new systems yet. So, the best thing you can do is work with an experienced accounting team and payment processing service to ensure that you have the right balance between staying current without leading out too far in the industry.

Digital Accounting: Key to Business Tracking

When the term “digital accounting” is used, it refers to the electronic format of the formation, data, and transmission of financial information for your business. The math is always the same: money coming in will increase your account balance, and payables decrease your account balance. But you don’t need to balance the checkbook in the way that was done 30 years ago. Now these modern accounting systems automate the math and calculations.

This automation is key to free up your time. There’s no reason to spend hours of your day doing manual calculations. Instead, you can lean on the support that comes through the right accounting software. These programs are beneficial for improving accuracy and optimizing productivity for your team. When digital transactions are moving through your account, you can rest assured to know that everything is recorded because you are using a digital accounting system to record the information.

In addition to the basic bookkeeping and tracking required for every business, digital accounting also offers powerful solutions for data analysis. Collecting financial information doesn’t mean anything unless you have reports that showcase the financial health of the company. These digital, modern accounting systems have enhanced the reporting options. For example, the technology can report and interpret data more quickly than ever before. Plus, the information is more effective and efficient, giving you hands-on application that can have a dynamic impact on your business decisions.

Taking it to the Cloud

When digital accounting first started, there were still manual aspects required for calculations. For example, using a 10-key calculator allowed faster computing, but the numbers were still limited because of the possibility of typos or human error.

Then, the digital tracking moved to computers. Software programs could be installed on computer systems, giving business owners the option to enter transactions and track results. This step upgraded the digital accounting industry because the history could be stored digitally. The main weakness was that the accounting system was limited to a single computer, or an elaborate networking system needed to be implemented to share information on multiple devices. If the local hardware malfunctioned, then the accounting information would be lost.

One of the greatest benefits of our current, modern accounting systems is that information can be stored in the cloud. When transactions move through the accounting software, the data can be viewed on your computer. At the same time, all information is stored securely on an off-site computer. This cloud-based accounting solution minimizes the risk of losing all of the accounting data due to a system malfunction.

Another benefit of modern accounting is that multiple devices can access the financial reports from any location. Storing the data and systems in the cloud means that the information can be reviewed from any location, as long as the person has permissions and access to look at the reporting. For example, a business owner can see the business transactions in real-time, even when located in another part of the country or on the other side of the world. The internet allows the information to be shared and distributed, giving full access to anyone on your team. You can decide who is collaborating in the accounting and bookkeeping systems.

One Hub for All Financial Needs

A modern accounting system makes it easier than ever to keep up with financial responsibilities. Since your business records and financial information are stored in one location that is easy to access, you can view your accounts with the touch of a button. You can be on the road for a business meeting, and keep up with invoicing and payments from any location.

Additionally, digital accounting opens up opportunities for you to hire outsourced bookkeeping and accounting teams. There’s no need to have an accountant in your office when an outsourced accounting team can access your business financial information from their own office. Many businesses are moving to outsourced accounting solutions to save money and improve overall results, without the need to have a full-time accountant on the payroll.

As you can see, the internet has opened up many options that can improve your business systems. If you haven’t implemented modern accounting in your business, then it’s time to take action so that you can upgrade your financial tracking and improve overall results for the company.

Talk to Our Team About Modern Accounting Solutions

Are you exploring options to improve your business accounting systems? Our experienced team is here to answer your questions and assist with anything that you need. Working with an experienced, outsourced accounting team means that you can hand over the financial tasks that need to be addressed. Outsourcing bookkeeping and accounting can be an effective way to free up your time so that you can focus on other business responsibilities. There is no reason for you to spend your time on busy work when you can let the pros take responsibility for accounting support instead.

At Easier Accounting, we offer high-quality, personalized business accounting services. Our team specializes in small business solutions. We invite you to call at your convenience to learn more about the support that is available for your company: (888) 620-0770.

Warning Signs It’s Time to Hire an Outsourced Accountant or Bookkeeper

Are you carrying more responsibility than you need to within your small business? As a business owner, it can be hard to let go of the control of certain tasks that need to be done. Too often, business owners spend their time on busy work, resulting in a situation where there isn’t enough time left for some of the most important activities to help the business grow. Right now is a great time to consider the support available to help your company. For example, there are many benefits to hiring an outsourced accountant or bookkeeper.

Strain of Accounting and Bookkeeping on a Business Owner

You are already carrying the stress of business development, employee hiring, management, and more. Why overwhelm yourself with the added strain of accounting and bookkeeping as well? Instead of spending your free time with your head buried in the financial records, you can hire an outsourced accountant or bookkeeper for assistance. It is amazing to see how much your stress levels drop when you can lean on the services offered by an industry professional.

There’s no question that maintaining an organized set of books for your business can be both confusing and time-consuming. Not only do you need to track the numbers that are moving in an out of your accounts, but you also need a way to keep track of receivables and payables. If you don’t know much about accounting, it is likely you will waste hours of time searching the internet trying to find tutorials or information. Even with the best of systems, business accounting and bookkeeping can turn into a full-time job that is hard to manage.

Some business owners try to solve this problem by hiring an in-house accountant or bookkeeper. But you will likely encounter problems with this solution. For example, you still hold the overall responsibility to ensure the employee is doing what needs to be done. Plus, you are carrying the added burden of paying for their salary and overhead costs that come from another employee in the office.

Hiring an Outsourced Accountant or Bookkeeper

Most clients reach out to us at Easier Accounting because they are overwhelmed with everything it takes to manage bookkeeping tasks. When the business is growing, business owners don’t often have the patience or time to keep up with these bookkeeping and accounting requirements. Instead of beating yourself up because you are behind with your bookkeeping, remind yourself that this process is a normal part of business growth.

It’s a good sign because it means that your business efforts are expanding and moving forward! This overwhelm also means it is the perfect time to reach out to an outsourced accountant or bookkeeper for the assistance that is needed.

The truth is tapping into the expertise offered by a financial professional might be one of the most effective decisions you could make for your company. Your accounting team can provide recommendations that will propel your business efforts forward and help you reach higher levels of success.

Warning Signs that You Need Accounting and Bookkeeping Help

How do you know when it is time to finally hire an outsourced accountant or bookkeeper? Here are some of the warning signs that indicate you need to hire the help that is needed for your business finances:

  • Working Too Much: Do you find yourself doing bookkeeping date entry or tallying tax deductions late into the night? If your business efforts are cutting into family time or personal hobbies, then it means you need to bring in extra support. You work hard throughout the day on business development, brand strategy, client relations, and more. These daily activities should take priority, often causing the busy work to fall to the backburner. Working late to the point where it cuts into your sleep means you are on the fast-track to burnout. Instead of spending your nights trying to stay current with the bookkeeping tasks, bring in the experts so you can turn your attention to your services and customers.
  • Behind on the Paperwork: A quick glance at your desk can be revealing about your ability to keep up with the bookkeeping tasks. If you have a stack of paperwork that needs to be addressed, then you should find expert help to get ahead. Staying current with Accounts Payable and Accounts Receivable are essential so you keep the money coming into your business, and you don’t fall behind on the payments that are owed. Be realistic about your efforts and ask yourself if your books are currently at this moment. If you know that the reports would be inaccurate due to inaccuracies with the transactions, then the best thing you can do is call an accounting team right away.
  • Outdated Financial Systems: Even if you have an accounting or bookkeeping system in place, you need to evaluate whether you are keeping up with industry trends. Accounting technology can be used to simplify your processes and optimize the reports that are available. If you are still tracking your business expenses manually on a spreadsheet or notebook, then you are leaving benefits on the table. Hire an outsourced accountant to get support with setting up your new system and implementing the right technology that can support your business growth.
  • Taking Time Away from Customers: Another warning sign you need an outsourced accountant or bookkeeper is that the paperwork is taking up so much time you no longer have enough time in the day to offer to your customers. When the accounting and financial reports take precedence over your clients or customers, it is a sure sign you need expert assistance.
  • Starting a New Company: Even though you have positive expectations about a DIY approach for the first few years of your new startup, you need to consider the potential consequences of skipping professional accounting services from the beginning. The best thing you can do when starting a new company is to ensure you have a solid foundation and a good financial system in place. Starting on the right foot means you are setting yourself up for success in the future. An experienced accounting team will offer advice and suggestions to help you avoid common pitfalls and problems encountered by other business owners.
  • Lack of Compliance Understanding: When it comes to tax calculations and business write-offs, it is essential you have a clear understanding of IRS requirements, as well as state and local laws. Maintaining compliance for your business efforts is not only time consuming, but it can be stressful if you don’t understand these laws. In fact, the laws often change, which means it is more effective to lean on the services of someone who truly understands the financial industry. Making a mistake could be costly, resulting in hundreds or even thousands of dollars in fines and penalties. These issues can be easily avoided by hiring an industry professional for assistance.
  • Missing Payments from Customers: Without money coming in from your customers, your business won’t be able to keep going each month. Unfortunately, it is common for businesses to have overdue payments from customers. You need to have a system in place to follow up on these payments to ensure you have the cash flow to keep up with your business expenses. There’s no doubt outstanding payments can result in a domino effect that could topple your business in the future. If you aren’t consistent about tracking and following up with payments that are due, then it is best to let someone else handle this aspect of your business. Hire a bookkeeping or accounting professional for assistance.
  • Mixing Personal and Business Finances: It is a huge mistake to be using the same bank accounts and credit cards for both personal and business transactions. Not only is it complicated to extrapolate the transactions, but you might find yourself tapping into personal finances when business operational costs need to be covered. Using the same accounts for business and personal spending is a sign you don’t have a good tracking system in place for your business. The best thing that you can do is hire an accounting team to get your business system set up so you can create clear boundaries with your spending.

As a business owner, it can be a relief to know you don’t have to carry this financial burden without support from an experienced team. If you are ready to hire an outsourced accountant or bookkeeper, then we are here to help. Not only can we assist with the ongoing tracking and financial reports for your business, but our services can also include essential tasks such as tax calculations, payroll, and more.

You deserve to have a proven accounting system to support your business needs. So, it is time to call the experts at Easier Accounting. Contact us right away to learn about the services that are available for your business needs: (888) 620-0770

Overlooked Benefits of Hiring an Outsourced Accounting Team

It can be a challenge to decide if you should hire an outsourcer or employee to help with the accounting needs of your company. If you want to improve financial systems and set your company up for future success, then you need to be sure that you have the right financial professional to help.

As you compare the options, you will see that an outsourced accountant is often the best choice. These are a few of the benefits you will enjoy when you hire an outsourced team to help with accounting for your company:

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1. Working with a Team

Hiring an employee means that you will have a single individual handling your business financials. On the other hand, an outsourced accounting team can give you access to multiple accounting professionals. The combined experience is much more powerful than one person.

2. Efficiency of Workflow

Some small business owners make the mistake of trying to handle many different tasks on their own. If you are juggling different responsibilities throughout the day, then it likely means that you are wearing yourself thin. Hire an outsourcing team to handle some of the work, which in turn will allow you to improve your workflow and efficiency during the day.

3. Focused Expertise

A reputable accounting firm can offer invaluable experience, especially when they have been working with many other companies that are similar to yours. It is much better to hire a seasoned professional instead of trying to save money by bringing in a low-salary employee fresh out of college.

4. Proven Systems

There’s no reason to re-invent the wheel! An experienced accountant can make recommendations about the financial systems that should be used for your company. Investing in the right systems can make a big difference to help you have access to the best financial reports. These details will make it easier for you to make the right decisions throughout the year.

5. Scale for the Future

As a business owner, you are likely focused on the tasks that will help your company grow. To scale the company, you need to make sure that you have the right financial systems in place. An outsourced accounting team can offer the support that you need to prepare for the future.

Here at Easier Accounting, we are here to assist with the financial needs of your small business. We offer expert accounting services that can be catered to match your individual needs. Call us right away for more information about the services that are available: (888) 620-0770