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Why Tax and Accounting Services are Essential for Small Businesses

As a small business owner, you probably agree that dealing with taxes and accounting is at minimum a chore… and even a headache at times. It can be stressful to sift through tax paperwork and determine the right forms that need to be filled out. Plus, you need to worry about cash flow, tax payment deadlines and more. One of the best investments you can make is hiring tax and accounting services, so you don’t have to get caught in the busy work.

Today, we’re sharing detailed information that you need to know about tax filing for your business. If you have questions, you are always welcome to reach out to our team here at Easier Accounting. Our goal is to support your small business so you can focus on the processes and systems that will set you up for success in the future.

Hiring a pro team will take the stress off your shoulders. Not only will the accounting team do your taxes, but we can also support your business throughout the year by running financial reports and keeping up with transactions that are moving through your accounts.

Step-By-Step Guide for Small Businesses

Here is an overview of the step-by-step process that should be followed if you are setting up your financial system and preparing for taxes in the future.

How is Your Business Structured? The type of entity used for your business will impact the way your taxes are filed. It is important to know your entity in advance so that you can choose the right tax and accounting services to match your needs. The most common types of small businesses include a Sole Proprietorship, Partnership, S Corporation, or Limited Liability Company (LLC).

Record Your Transactions: Don’t wait until tax season before you start working on the preparation for the filing. The truth is that tax preparation should be happening throughout the year. As transactions come through your business, you need to be tracking the money that is flowing in and out of your accounts. Records are the foundation of a successful tax filing. You need to have these records ready to go when it is time to prepare your tax filing.

The specific records that are needed will vary depending on the business entity you are using. As a general rule, you need all information related to both income and expenses:

Income

  • Sales transactions (receipts)
  • Returns
  • Interest from bank accounts
  • Any other money that comes into your account throughout the year

Keep in mind that ALL income received needs to be reported. So, make sure that you are keeping detailed records as the business receives various forms of payment.

Expenses

At the same time, expenses need to be tracked and verified. While it might seem like a hassle to track every penny that is spent, these expenses can add up to big tax deductions. Not only do you need to know how the money was spent, but you need to be able to back up the transaction with documentation, such as a receipt or invoice.

  • Marketing costs
  • Vehicle expenses (mileage log)
  • Fees and commission paid out
  • Outsourced services, including Form W-9
  • Interest costs
  • Office supplies
  • Travel, including transportation, hotel, and food/entertainment
  • Rent or mortgage
  • Utilities, internet, and phone services
  • Maintenance or repair work
  • Insurance premiums
  • Inventory purchases
  • Business development costs
  • Employee salaries, including Form W-2, Form W-3, Form 940, and Form 941

Some of these forms need to be completed and distributed before it’s time to file your taxes. For example, employee tax forms and W-9’s for outsourced services need to be postmarked by January 31st for the previous calendar year. Make sure to hold onto copies of these forms, so they are ready for your tax and accounting services when it’s time to file your taxes a few months later.

Choosing the Right Tax Forms: One of the complicated aspects of tax preparation is the variety of tax forms used by the IRS. You don’t need to file every available form! Instead, talk to an experienced tax and accounting services provider so you can choose the forms that apply for your business entity.

For example, certain forms need to be filled out for an LLC that aren’t required for a Sole Proprietorship. Tax forms might include self-employment taxes, FUTA taxes, Individual Income Tax Return, Profit or Loss from Business, and more. If your business is set up as a Corporation, then you might need to file forms regarding Shareholders, Schedule E, among others.

Why DIY is a Problem

Choosing the applicable forms is just the first step. Once you know which forms are required for your business, then you need to fill out the necessary information. You can search online to find tutorials regarding the various fields and entries that need to be managed on each form. There are also software programs that walk you through the process of entering the information for the forms.

Even though a DIY approach for tax preparation and filing seems like an affordable solution, the truth is that you are likely leaving money on the table due to errors and overlooked deductions. One small change on a tax form can have a drastic impact on the amount of money that is paid each year.

If you don’t have formal training and experience with tax preparation, then the best solution is to hire experienced tax and accounting services to handle the paperwork on your behalf. All you need to do is provide the business and financial information to your accounting team. Then you can sit back and relax, knowing that your accountant will oversee every aspect of the tax filing. Business owners often find that professional tax filing services help to reduce overall costs by minimizing the tax burden each year. Our goal is to keep your tax preparation within the guidelines and bounds set by the IRS, while maximizing write-offs whenever possible.

What You Can Expect from Tax and Accounting Services

Choosing a full-service, outsourced accounting team means that you will talk to your accountant throughout the year. There is no reason to wait until tax season before having a conversation about your tax preparation. Good tax and accounting services provide support before, during, and after tax preparation.

Here is an overview of the year-round support available for your small business:

  • Before Tax Season: The goal is to create a strong, effective accounting system that makes it easy to track your expenses and income throughout the year. The right software will make it easy to gather the necessary information when it is time to file your taxes each year. Ongoing tracking enables you to take advantage of the available tax write-offs. Additionally, your accountant will provide information regarding how tax laws are changing each year, so you can keep up with the newest rates and other details that impact your business.
  • It’s Time to File Your Taxes: During tax season, your accountant will review the financial reports and other applicable information. If you need both a business tax return and a personal tax return, then it is best to have the same preparer handling both filings. These services are designed to maximize the overall tax benefits available for your personal and business needs.
  • After Tax Season: When things quiet down and tax season is over, it feels good to know that your accounting team is always just a phone call away if you need support. Many business owners find it beneficial to have an accounting team assisting with payroll processing and ongoing bookkeeping services. Additionally, it is important to call your accountant right away, so you have representation if an audit occurs.

Do You Need Small Business Tax Services?

How do you know when it is time to invest in small business tax services? In the beginning, paying for professional tax preparation support might seem like a big expense, especially if you are pinching pennies to get your new business venture off the ground. But it is worth the investment to hire an accounting team from the beginning.

Tax and accounting services for small businesses give you the foundation needed that will help your company flourish. A good financial and accounting system gives you a clear picture of the financial health of your company. This information is essential, helping you see potential areas of growth and other ways you might be spending in the wrong categories. An accountant can help with much more than basic tax preparation, which is why it makes sense to start with these services right away.

Our team at Easier Accounting offers years of experience helping small business owners like you. We have hands-on experience with various tax and accounting services, including tax preparation, payroll processing, and more. If you are considering the benefits of hiring an outsourced accounting team, then we’d love to have a conversation to see if our services are a good fit for what you need. Call us right away to learn more about the options for your business needs: (888) 620-0770.

Did You Know that Outsourced Accounting Can Boost Business Revenue?

When starting a business, outsourced accounting often falls to the backburner because most entrepreneurs are focused on the logistics of getting the company off the ground: product development, customer service, storefront design, payment processing, and more. It can be easy to get caught up in these logistics, causing you to overlook some of the most important paperwork and financial systems that need to be implemented to ensure your business starts with a strong foundation.

Whether you have big goals for the future or you are starting the business to bring in a little extra cash on the side, bookkeeping and accounting should never be pushed to the bottom of the priority list. In fact, there is a strong argument that outsourced accounting and bookkeeping might be the most important factor that will affect your success in the future. Without a good financial system, you can’t keep track of cash flow, profit margins, annual trends, and other data that will influence the decisions you are making each day.

Accounting Doesn’t Need to Be a Burden

One of the reasons why many business owners don’t prioritize accounting and bookkeeping is because it feels like a burden to keep up with the transactions. If you are focused on business development, then it seems like a hassle to set aside a few hours each week to categorize transactions and reconcile the accounts. Too often, business owners let these tasks fall to the back burner and then eventually face bigger issues in the future when a financial mess occurs.

If you don’t have the time or desire or skills to work on the bookkeeping and accounting tasks for your business, then it is smart to let the pros take over. There is no reason for you to spend your limited time on tasks that aren’t within your specialized skill set. Just like you should schedule an appointment with a dentist when you have a problem with your tooth, it is smart to enlist the services of an accountant when you want to improve your financial systems.

The key is to take action as soon as possible. Don’t wait for a problem to occur before you call an outsourced accounting expert. Instead, you can be proactive in designing the right financial system that will support your bigger goals. Hiring accounting and bookkeeping experts will give you the information and skill set needed to oversee your spending and income, helping to maximize profit margins as much as possible.

Outsourced Accounting Can Boost Revenue

When most small business owners think about hiring an outsourced accountant, they only see the cost of paying for these services. Yes, you will have an expense to get the help that is needed. But instead of this cost being a liability to your company, the money spent is actually a great investment that can help to improve your results.

These are some of the financial benefits you can expect if you choose to hire an outsourced accounting team:

  • Team of Experts: Most small business owners don’t have formal training or experience with bookkeeping or accounting. As a result, a DIY attempt often results in problems and mistakes. Even a few small errors in your financial system can add up to significant problems in the future. Don’t let these issues hinder your success or progress. Hiring an experienced accounting team means that you can bring in the skillset that you need, without spending hours with your head in an accounting textbook.
  • Outsourcing is Affordable: Once you see that accounting skills are needed for your business; you might think about hiring another employee with an accounting background. There are some situations where it makes sense to bring on another full-time employee because of the massive need for skills and support needed in your company. But, more often than not, small business owners don’t require 40+ hours per week of accounting services. Instead, a few hours of outsourced accounting services will be sufficient for financial reporting and tracking. Compare the costs of hiring an outsourced accounting team vs. bringing on another employee, and you will see that it is much more affordable to skip the full-time salary and benefits.
  • Cash Flow Management: Problems with cash flow can bring a company down more quickly than you can imagine. Even if you have consistent income flowing into the bank account, you can still run into problems if there isn’t enough cash to cover the bills and expenses. Additionally, you need to think about the timing of the payments to make sure the money is available when your bills are due. An accounting team can help you in designing the right system for cash flow management. As you track, budget, and control the flow of money, you can reduce overall costs and increase profit margins at the same time.
  • Cutting Unneeded Expenses: One aspect of cash flow management is looking at the unnecessary expenses that might be cutting into your profit margins. How often do you have small (or large) bills moving through the account that aren’t worth the cost that you are paying? An accounting expert can help you evaluate your spending to identify any areas where you could potentially save money. At the same time, look at the activities and tasks that bring in the most money. Then find ways that you can expand your efforts with the things that are working best to increase revenues for your business.
  • Tax Strategy: Taxes can be a pain point for many business owners, especially when they don’t have the right strategies in place to set aside the right amount for the IRS. It can be a stressful time when tax deadlines approach, and you don’t have enough money in the bank. Not only will an outsourced accounting team help you create a system so that you have the taxes set aside in an account. But you can also create a safe, yet aggressive, tax strategy to leverage all of the write-offs and deductions that are available for your business. This strategy can be beneficial to minimize your tax burden and save you money each year.
  • Business Growth Opportunities: If you are currently spending time on bookkeeping and accounting tasks, what is the opportunity cost of those hours? Consider the way you could be using that time to boost your business efforts and increase revenue. Handing off the bookkeeping responsibilities to an accounting expert means that you can dedicate more of your week to business development, marketing, and client relationships. It’s hard to put an exact value on the potential growth that can come from these activities. But you will see how much these activities can add up over time.
  • Compliance and Regulations: Also consider the money that is saved due to compliance and legal regulations. For example, if you attempt a DIY approach for tax preparation and a mistake is made on the tax filing, then you could be facing a very expensive bill if the IRS finds the mistake. Not only do you have the pay the difference, but you will likely need to hand over the cash for late fees, interest costs, fines, and more. These unnecessary costs can easily be avoided by hiring an expert team to oversee tax preparation and anything else that might affect your company due to financial compliance, laws, and regulations.
  • Financial Reporting Accuracy: When you need to make significant decisions for your company, financial reports can be helpful so that you can see the trends, profit margins, and cash flow. For example, it is hard to know how much money can be put into business development if you don’t have a clear picture of the amount of money that is available. An outsourced accounting team will ensure that your financial reports are accurate. As a result, you can pull these reports on demand to get real-time information about the current financial health of your company. This information will improve your decisions and help with the overall management of spending, employees, and more.
  • Fraud Reduction: An in-house financial management system increases the risk of fraud, especially when you don’t have the right checks-and-balances in place. Even if you think that you can trust your team, there is always a risk that someone will try to skim a little off the top. Whether the employee tries to steal money, or they are taking some of the inventory home, it can hurt your profit margins. Hiring an outsourced accounting and bookkeeping team will give you peace of mind in knowing that you have good financial systems in place to catch fraud before it turns into a big problem.

At Easier Accounting, we offer the skills and services you need to build a solid financial system for your small business. If you are considering outsourced accounting services, then we invite you to contact our team right away to learn more about the available services. Call us at your convenience to see how these accounting and bookkeeping solutions can help to boost your business revenue: (888) 620-0770.

7 Effective Tips for Designing a Good Accounts Payable System

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

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

Accounts Payable System: What is it?

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

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

Accounts Payable vs. Accounts Receivable

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

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

Why Accounts Payable Matters

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

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

7 Tips to Improve Your Accounts Payable System

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

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

Is it Time to Upgrade Your Accounting System?

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

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

Tapping into Expert Advice

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

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

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

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

Choosing Business Accounting Services: Firm vs. Freelance Bookkeeper

One of the best stress-reducing decisions you can make for yourself is hiring an expert to help with business accounting services. You are already carrying enough stress as you are working through the details of employee management, marketing plans, and product development. Add the details of bookkeeping and accounting on top of your daily responsibilities, and it can be a lot to keep up with on an ongoing basis.

It’s understandable that the decision to outsource business accounting services can be a challenge. Not only do you need to hand over the keys to someone you don’t know, but some business owners aren’t sure if it is worth taking on another monthly cost. The truth is that you will receive countless benefits when you finally make the decision to work with an experienced financial pro. This one decision might be the turning point to help your business grow to higher levels of success.

Why Do You Need Business Accounting Services?

If you are getting your company off the ground, then it might seem like an unnecessary expense to hire a financial professional. Is it worth the cost when cash flow is tight? Yes! As you learn more about the benefits of working with an accountant and/or bookkeeper, you’ll see that this expense should be at the top of your priority list.

Many entrepreneurs thrive on DIY, especially when they are just getting started. While there are certain things that you can do for yourself, there are also appropriate times to bring in an expert who can assist with your needs. It can be a challenge to find the time required to keep up with ongoing bookkeeping and accounting responsibilities.

Plus, there is a good chance that you are making avoidable mistakes if you don’t have experience in the financial industry. You wouldn’t try to fill a cavity without visiting a dentist, so why would you try to analyze financial reports if you don’t have an accounting background? Failing to engage the services of a trusted accounting team means that you will be missing out on critical insights that are needed to help your business grow.

In fact, when business owners finally make the decision to hire someone to help with accounting and bookkeeping, these business owners often find that they weren’t doing nearly as well as they expected. Just because you are staying consistent with your DIY system, doesn’t mean you are covering all of the essential aspects required for your financial reporting.

It is common for a financial professional to uncover problems with transactional errors, poorly structured systems for paying bills, and even gross errors in the financial reports. If you want to make quality decisions for your business, then you need to lean on the services offered by an accounting professional.

Considerations: Bookkeeper vs. Accountant

The most important thing that should be considered as you are making this decision is regarding the type of services that are required for your company. Are you looking for someone to help with only tax strategy? Or, do you prefer a full-service approach that includes ongoing support with account reconciliation, financial report analysis, and more?

Even though the term “bookkeeper” and “accountant” are sometimes used as synonyms, there are distinct differences in the services that you will receive from these providers. You should never assume that a bookkeeper can provide all of the services available from a business accounting firm. As a result, you might be missing out on a few key services that are required to support your business needs.

A bookkeeper and accountant share common goals, and their roles often overlap. Here are a few details to help you distinguish the different types of services available:

  • Bookkeeping Services: A bookkeeper is responsible for overseeing the ongoing financial transactions, such as invoice payments, payroll, sales tracking, and more. These transactions need to be recorded, categorized, and reconciled to ensure that details aren’t overlooked in the bigger financial picture. Bookkeepers help with accurate recordkeeping, but the services don’t typically include analysis of financial reports.
  • Accounting Services: When a bookkeeper ensures the business is maintaining accurate record keeping, then the accountant can step in and build on the information that has been recorded by the bookkeeper. Accountants often help with financial statement reviews. The data is taken to the next level with detailed analysis, interpretation, and advice. The goal is to use reportable data in a way that helps with cash flow and business strategy.

So, do you need a bookkeeper or an accountant? In most cases, small business owners can benefit from both services. The benefit of choosing a bookkeeper is that the services are often less expensive, but you will be missing out on the financial analysis available from an experienced accountant. In fact, it often makes sense to spend the extra money on accounting services, because you will be able to recover those costs by reducing your tax load and maximizing your business strategy. Many business owners find the best solution is to choose a team that offers both bookkeeping and accounting services, such as the all-inclusive packages offered here at Easier Accounting.

Comparing Your Options: Firm vs. Freelancer

There’s no question that every business owner needs to tap into financial support. Most people begin with a startup idea, but they have no experience or knowledge regarding the business side of things. Just because you have a product that people are interested in buying, doesn’t mean you have the smarts to handle the books that support your business.

It is important that you understand a few distinctions between the services offered by an accounting firm vs. a freelance accountant:

  • Cost: If you are looking for the lowest price, you will often find the best value for your money by hiring a virtual team. Local accountants need to carry the expensive overhead costs of maintaining a building and other expenses. In comparison, an online team can keep prices low since these costs can be avoided.
  • Timeline: When you are working with a team, such as the services offered here at Easier Accounting, you don’t have to stress about deadlines being missed. Certain deadlines need to be met, such as payroll processing, account reconciliation, and tax payments. A single accountant will go out of town at times, which means that your deadlines might be overlooked since only one person is overseeing your financial needs. In comparison, a financial team ensures you will never miss a deadline, regardless of the personal schedules of the individuals on a team.
  • Experience: There’s no question that you are tapping into a broader range of experience when you choose to work with an accounting team. A local accountant will have knowledge about small businesses in your area, but that experience will be limited since the person is tied to a geographic location. In comparison, an online team has experience working with a full range of companies in many different locations. This spectrum of hands-on experience means they have more to bring to the table regarding the financial services needed for your company.
  • Access: One of the benefits of our digital age is the access to cloud-based software programs. Instead of the need to visit with your accountant in person, you now have the option to work with a team located anywhere in the world. Even if you are on the other side of the country, our team can offer high-quality services through digital access to your financial books. Your business can go paperless, and approved managers and financial pros can access your financial information at any time.

When to Hire Business Accounting Services

The truth is that it is never too early to bring in the experience of an accounting professional. Even if you are just getting started with your new business or you are in the early stages of growth, it is essential you have the support of a financial team that will help you get things off the ground. Business owners who make the decision to hire an accountant early in the game rarely regret their choice.

These services help to build a solid foundation that makes it easy to help your business grow in the future. When you have a solid financial system, then you can avoid common growing pains that occur when other business owners aren’t prepared.

A financial professional can help as you create a plan based on the needs of your company. This system will help you save time, which means that you will also be saving money in the process. You can hand the responsibility to an experienced business accounting service, allowing you to turn your focus to other responsibilities that are required to help your business grow.

If you are considering the option to hire business accounting services, then our team is here to assist. Easier Accounting knows what it takes to ensure financial clarity for your small business. We invite you to reach out to us any time to learn about the services that are provided by our team. We’re here to help with both bookkeeping and accounting services needed for your small business: (888) 620-0770.

How to Leverage Financial Mistakes to Build Your Small Business

It doesn’t matter if your startup efforts are home-based in the basement or if you’ve been in business for years, money management can be a concern for all business owners. Dealing with cash flow, expenses, and billing can be a challenge. In some cases, certain financial mistakes can be enough to force a company to close its doors.

Maybe you’ve identified financial mistakes that have affected your company. Or, there is a possibility that mistakes have slipped by undetected. Either way, it is essential that you have a good accounting system to help you stay on track. Just because financial missteps happen, doesn’t mean that it will be the closing chapter for your business efforts. Instead, these mistakes can often be used to identify weak points in your system, helping you strengthen your business strategy for the future.

Transparency is Key for Success

The most important thing that you need to do is to maintain transparency with your reporting and accounting practices. If a mistake happens, it might be tempting to “brush it under the rug” because you are embarrassed that you didn’t get it right. But we are all human, which means that mistakes happen. Instead of spending your time focusing on the problem, look at the overall picture and identify areas of improvement.

Transparency is the best thing you can do to keep your company moving forward. When you are consistent with financial tracking and reporting, then you can always get a good feel for the current positioning of your company. These details can be used to influence your business decisions, helping to propel your company forward in the future.

So, every business owner needs to look at the foundation of wise financial tracking: do you have a good accounting software and system to maintain transparency with every transaction that moves through your accounts? Creating this system is essential so you can leverage your mistakes for your advantage.

Turning Financial Mistakes into Advantages

How do you put this principle into action? It can be difficult to see where you can make changes after a mistake so that the situation is a positive support for your company. Here are a few examples to help you create the mindset of learning from your mistakes:

  • Cash Flow Complications: When the overhead costs and bills come due, you need to be sure that there is enough money in the bank to cover these expenses. The truth is that most business owners experience challenges with operating capital. Regardless of the size of your business, cash flow is something that needs to be addressed and prioritized. All it takes is one big client who is late with a payment to result in a situation where you need to get creative to come up with cash for payroll or an upcoming tax bill. If you encounter cash flow issues, then it means you aren’t being careful enough in your project estimates. Rework your business plan so that you are more conservative with the monthly estimates. Also, make sure you always have at least 3 months of operating expenses in an emergency savings account.
  • Lack of Diversification: Do you have all your eggs in one basket? Without client diversification, you could be facing issues if the industry shifts. Don’t allow your cash flow to be dependent on a single client. This mistake could leave you in a pinch, but it is also a good motivation to change your processes to ensure it doesn’t happen again in the future. Going forward, be deliberate about reaching out to new, potential clients before the other contracts end. You need to be sure that you have enough in the pipeline to stay busy, even when things change with your current workload.
  • Skipping Project Milestones: When you have a lot of cash tied into one client or customer, you might make the mistake of waiting for a lump sum payment at the end of the project. Unfortunately, payment delays and schedule slippage could result in late payments, which will have a domino effect on other aspects of your business. Learn from your mistake: Instead of aiming for one big payment at the end of the project, set up projects with milestones and incremental invoicing to ensure that the cash flow is still coming through.
  • Business Growth Happens Too Quickly: It doesn’t sound like a bad thing to have your business growing so quickly that you can’t keep up. But, if important details are overlooked, then it could show your company in poor light in the industry. There is a fine balance to ensure that you are keeping up with the growth without leveraging yourself too quickly. For example, not only do you need to ensure you have the inventory to keep up with an increase in product demand, but you also need to be careful to avoid leveraging up the overhead expenses if your cash flow can’t handle it yet. Always be conservative in your forecasts and be careful to manage expansion according to the timeline that your business can carry.
  • Not Following Through on Outstanding Invoices: Consistency with follow-through is essential when it is time to collect payments from your customers. If you aren’t diligent with touching base about the outstanding payments, then it’s likely you won’t receive timely payments. Avoid these financial mistakes by committing to a good accounting system going forward. Organization, consistency, and the right software program can help you identify the outstanding payments so you can be sure that nothing slips through the cracks.
  • Competing on Price: If sales are slow, then it might be tempting to lower your prices so you can bring in more customers. Unfortunately, many business owners find that it’s a race to the bottom if you are only competing on price. Slashing the price of your products or services is only a temporary fix to bring in immediate cash flow. But this decision harms your profit margins, which means you will have less cash to work with for business growth in the future. If you’ve made this mistake, then it is time to redefine your marketing and branding strategy. It is essential you differentiate in the industry based on value for the customers. People will be willing to pay more money if they can see the benefits that will be gained from your product or service.
  • Data Entry Inaccuracies: There is always the risk of mistakes happening on the project. Whether an employee entered a few inaccuracies on the transactions in the accounting software, or someone overlooked a transaction altogether, it can have an impact on the accuracy of your reports. When inaccuracies happen, it means you are making decisions using wrong information. As a result, it could harm your cash flow, potentially resulting in late fees and legal ramifications if payments are missed. This problem can be solved by creating a system of checks and balances. In the future, you can rest assured knowing that nothing is overlooked when you are consistent with monthly reconciliations.

How to Handle the Situation When Mistakes Happen

What is your automatic response when a mistake is discovered in your business? Some people get upset; while other people want to ignore the problem. Before another mistake happens in the future, it is smart to evaluate how you will handle the situation going forward.

Failing fast is key when mistakes happen. Don’t let yourself get so caught up in the moment that you have a hard time moving forward. If money was lost, then view the situation as “tuition” for the education that you learned. Allow yourself to learn from the mistake so you can implement changes that will move your company forward in the right direction. A few small changes can be put into operation, making it possible to avoid running into the same mistake again in the future.

Tapping into Professional Services

The most common reason why financial mistakes happen is that business owners fail to utilize professional services that are available. Even though it might seem smart to save a little cash with a DIY approach, you could be facing a loss of thousands of dollars in the future with a big mistake. It’s worth the expense to bring in an industry professional so you can avoid some of the most common errors in the industry.

One great example is in the accounting industry. As a small business owner, you might try a do-it-yourself approach for tax preparation and filing. But you need to consider the hours and hours that will be required so you can figure out the tax forms and understand the best way to leverage your deductions. Plus, it is likely you could be missing out on thousands of dollars in tax write-offs because you didn’t understand the law. If a mistake is made, then you could be facing fines and fees from the IRS.

Instead, spending a little money for ongoing accounting services can be invaluable to help you avoid the common mistakes made by small business owners. If you are looking for financial support for your company, then Easier Accounting. Is here to assist. Call us at (888) 620-0770.

Why Should You Choose Outsourced Accounting Services?

Solid financial strategies are key to the success that is possible in your business efforts. Are you setting your company up for future growth and expansion by implementing an effective accounting system? Most small businesses are coming up short when it comes to financial reporting. If it is time to improve your current system or you need to implement a new financial software, then outsourced accounting services might be the right answer.

Strategic Alignment for Your Financial Goals

It’s easy to get caught up in the current responsibilities of running a company: employee management, inventory restocking, product development, and marketing campaigns. These tasks are essential to keep your business going through all of the ups and downs along the way.

Unfortunately, many business owners come up short in one important aspect: financial reporting and strategy. You might be too stressed right now trying to pay overhead expenses and keep up with current costs that you overlook the strategy needed for the future. But looking ahead is one of the best things you can do to set yourself up for success. If you don’t have experience in financial management and business strategy, then hiring an outsourced accountant can be a great solution.

Staying consistent with financial tracking and reporting will give you a clear picture of the financial health of your company. This information can influence the decisions that are made along the way, helping you optimize the current efforts to build for the future. Having a big-picture mindset ensures you will be ready to face anything that might affect your business.

Accounting and bookkeeping services can help you implement an ongoing tracking system that reports details about your spending, income, and movement of the cash through your accounts. Even if your company is profitable, you could face issues if you don’t have enough cash flow to cover overhead expenses. So, it is important you are looking at these financial reports regularly, giving you the option to make small changes and adjustments along the way as needed.

Consequences of Poor Accounting and Bookkeeping Practices

It’s easy to be lulled into a false sense of security if you have money coming into your bank accounts through the sale of products and services. But, one of the most common issues we see among small businesses owners is that they are lacking foundational principles for good bookkeeping and accounting practices.

We understand how overwhelming it can be to set up and maintain a comprehensive system that includes all accounting processes, bookkeeping tasks, and financial administrative responsibilities. You are already carrying enough responsibility in the daily management of your company. Do you feel burdened by adding more to your to-do list with bookkeeping busy work, such as bank account reconciliations?

Most startups and small businesses are facing the challenge of limited staff and no hands-on experience in process management. Your employees are already tasked with ongoing job duties. They don’t have the time or experience to take on complicated responsibilities such as accounting systems and financial reporting. As a result, implementing a good accounting and bookkeeping system often feels impossible for small business owners.

Without the right system, you will see problems start to arise. For example, if you are receiving past-due notifications on accounts payable and you don’t have a good system in place to track client payments, then there’s a pretty good chance that you’re running into cash flow issues. Seemingly small problems right now add up to major issues in the future. Eventually, poor financial reporting and planning could be the downfall of your company.

Are Poor Accounting Practices Hurting Your Company?

How do you know if your lack of accounting organization and structure is hurting your business? If you can answer “yes” to any of these questions, then it’s a sign you need to call an outsourced accounting team right away:

  • Do the accounting and bookkeeping tracking tasks fall to the back burner because you are too busy with other responsibilities throughout the day?
  • If your bookkeeping employee left the company, would you be lost trying to figure out where to pick up the pieces?
  • Have you assigned bookkeeping responsibilities to an employee who doesn’t have formal training or hands-on experience in accounting and bookkeeping?
  • Do you feel like you can never rely on financial reports since the transactions aren’t up-to-date?
  • Is it difficult to identify your exact profit margin without extensive manual work and calculations?
  • Are you using a manual entry system for tracking, such as an Excel spreadsheet?
  • Do you find it difficult to keep up with big payments, such as taxes and payroll, because cash flow is too tight?
  • Are employees using multiple software programs and computer systems without synchronization or tech integration?
  • Is it common that you are always pushing up against tax deadlines and other financial reporting dates because the work was procrastinated?
  • Is it difficult to maintain a consistent schedule with closing and reconciling the books each month?

Don’t beat yourself up or feel overly guilty if you can answer “yes” to one or more of these questions. Instead, recognize that it’s a good indication your business needs more professional support. Now that you recognize the gaps that are occurring in your bookkeeping and accounting system, the next step is to bring in an outsourced accounting pro who can help you get your business finances back on track again.

In-House Employee vs. Outsourced Accounting Services

Now that you can see the need to bring in an expert to help with your accounting systems, it’s time to act to resolve the financial issues you are facing. The most common assumption is that you need to hire an in-house accounting expert. While there is nothing wrong with bringing in another employee when needed, don’t overlook the other options that are available.

Before you hire an employee, you need to understand the burden you are taking on. Not only are you responsible for that person’s training and performance, but you also need to think about the overhead costs that will be incurred. For example, you need to pay for office space to accommodate the new employee’s desk. Additional costs add up for recruiting, hiring, and onboarding. Plus, you have other expenses for computer equipment, office supplies, employee benefits, and more. You aren’t only paying for the person’s wage; you need to carry the financial expense of bringing another fully-burdened check onto the payroll each month.

On the other hand, it is possible to save thousands of dollars every month by leveraging the services of an outsourced accounting team. Instead of paying for an expensive salary and benefits for an in-house accountant, you can only pay for the financial services that are required. Outsourced accounting is significantly cheaper than the overhead costs of an in-house employee.

Industry Experience from a Knowledgeable Team

There’s no reason for you to reinvent the wheel by starting a new accounting system from scratch. One of the biggest mistakes made by small business owners is attempting a DIY approach when it comes to financial reporting. Yes, you can find information online about setting up a bookkeeping system or how to compare various accounting software programs. But these online tutorials don’t compare to the services available from someone working “in the trenches” in the accounting industry.

Choosing outsourced accounting and bookkeeping services can be a valuable way to tap into the knowledge and experience of someone who is working with other companies. This real-world experience with small businesses and start-ups can be a great way to infuse your business with tools and strategies that work. Our accounting team has already built accounting and bookkeeping systems that work. You can rest assured knowing that your business doesn’t need to be the testing ground to find new solutions in the bookkeeping and accounting industry.

Hiring Small Business Accounting Services

Now the question at the top of mind is: where should I go to hire an outsourced accounting service? You might be able to find a local accountant that offers business services. But does that person have a wide range of experience that comes from a company who specializes in small business accounting?

We live in a digital world, which means you have access to some of the best accounting services with the click of a button. An online search can uncover options for your accounting needs, helping you tap into a proven system created for small businesses like yours.

If you are going to hire an outsourced accounting service, then it makes sense to research the company’s reputation. Learn more about the business and their experience before jumping into the services that are offered by them. For more information about quality services for bookkeeping and accounting, our team at Easier Accounting is available to help.

We are proud of the unblemished track record we’ve built with our customers. Over the years, we have worked with many small business owners, helping to create systems that address common concerns such as tax strategy and cash flow management. You can learn more about the services that are available by calling Easier Accounting at (888) 620-0770.

Bad Habits that are Sabotaging Your Business Finances

Even if you have the best intentions for your business, it is likely that bad habits (both big and small) are sabotaging your efforts. Have you identified habits that might be impacting your bookkeeping practices, business finances, cash flow, and more?

Small Habits are Worse Than You Think

Some of these habits might be obviously bad, but they don’t seem to be impacting your business in a terrible way. But, don’t let yourself be fooled. The smallest habits can have a compound effect over time. In fact, your daily, weekly, and monthly habits are key indicators that will affect your business success in the future.

For example, an overflowing filing cabinet with poor organization might seem like a nuisance. But the lack of organization with your paperwork could have a domino effect on your tax deductions, customer billing practices, and more. Not only will important information be overlooked along the way, but you will also spend an unnecessary amount of time sifting through papers when you need to find a specific document.

Instead of letting these small habits take away from the more important business tasks that need to be addressed, it is time to make a change that will improve your practices.

Important Bookkeeping Practices that Need to Be Fixed

Here are some of the worst bookkeeping and accounting habits that are causing problems for your company. You need to be aware of these problems, then commit to making the change that will turn things around for your business going forward:

  1. Messy Paperwork: Invoices, bills, contracts, and random paperwork can make you feel like you are buried in stacks of nonsense when you are sitting in your office. If you aren’t organized with the paperwork, then it will have a domino effect on all aspects of your business. A lack of organization with the paperwork means that you are likely missing deadlines and paying late fees because you can’t keep track of the necessary information. Put together a filing system and set aside time in your schedule to ensure that you are keeping up with the filing throughout the year. Your accountant can offer information and advice about the information that should be kept in your filing cabinet.
  2. Poor Deadline Management: Regardless of your industry, you always have deadlines and due dates that need to be managed. Failing to set these deadlines and adhere to them means that you could be missing key points along the way. For example, do you have a schedule to manage the frequency of when reports are run and analyzed for your business finances? If you are only looking at these reports once a year at tax time, then you are missing out on opportunities to improve your business strategy throughout the year.
  3. Not Saving for Taxes: One of the most stressful things that you can face as a business owner is a hefty tax bill that can’t be paid because you don’t have the cash flow when the deadline comes up. It’s no surprise that taxes need to be paid… you can count on it happening every year. Make sure that you are prepared by setting aside a specific amount of money so the cash is available when the taxes are due. Also, keep track of quarterly estimates and payroll tax deadlines to ensure that you are meeting the tax payment schedule based on the requirements of the IRS. Tax calculations and payroll management can be confusing and stressful, which is why it is important for every business owner to invest in professional financial services.
  4. DIY Financial Management: Just because you know how to balance a checkbook doesn’t mean that you have the bookkeeping and accounting skills for DIY business calculations. Working through tax laws, cash/accrual accounting systems, profit and loss reports, and other requirements for business accounting can be problematic. If you aren’t professionally trained in bookkeeping and accounting, then there is no question that you will benefit from professional support.
  5. Cutting Corners on Bookkeeping and Accounting: Yes, it is smart to save money whenever possible. But you will be making a big mistake if you cut corners by hiring a newbie instead of an industry professional. Even though you can find someone with basic secretarial skills which only costs $15/hour, it’s hard to calculate the opportunity cost of the services that come from a professional accountant. Whether you are hiring an employee or an outsourced contractor, make sure that you are paying the right amount to work with a professional. It’s worth the extra cost to ensure that things are done the right way. In fact, you will likely save money because you can avoid mistakes that could cost you in the future.
  6. Ignoring Software Solutions: There is always a learning curve when implementing a new software program for your business efforts. Even though it takes a little bit of effort to implement these systems, it is important if you want to set yourself up for the future. Talk to your accounting and bookkeeping team to determine the right software solutions that will be best for your industry. Once the software is up and running, you will benefit from the integration that simplifies your life and ensures that everything is running smoothly together. Data synchronization helps to reduce errors that pop up due to manual calculations and will improve efficiencies as well.
  7. Standardizing Business Financial Systems: Failing to have standardizations in place for your ongoing systems is a mistake that could take a toll on your success. Do you have a set schedule and standard practices in place for client billing and management? Consider the ongoing systems that affect the money that flows in and out of your business. Then, create a standardized system so that all employees, managers, and contractors are on the same page with expectations going forward.
  8. Ignoring Financial Reports: When you are busy managing employees, working on business development, and coordinating the new marketing plan, it probably feels like financial reports are low on your priority list. Don’t make the mistake of assuming that you only need to look at business finances at tax time. The most important thing you can do as a business owner is to understand key accounting metrics so you can track this information throughout the year.

Tapping into Professional Support to Change Bad Habits

Now that you’ve identified some of the bad habits that are affecting your business, it is time to make a change. But the best of intentions won’t make a difference if you aren’t willing to change ongoing actions and practices. Without the right systems, you will be facing ongoing problems in the future that will impact the success of your company.

As a business owner, the best thing you can do is tap into the professional support that is available to change your bad habits. Spend the money on services to ensure that your bookkeeping and accounting systems are set up in a way that will support your success going forward. Even though it costs a bit of money for the setup and ongoing maintenance, view this spending as an investment for all of the benefits that are available for you in the future. There’s no question that the right bookkeeping and accounting services can optimize your spending, increase profit margins, and maximize tax deductions that are available.

Let the Pros Fix Your Bad Habits

Often, the worse accounting and bookkeeping habits pop up when business owners attempt a DIY approach with their business finances. You need to be willing to let go of these habits, which means that it is time to implement the advice that comes from an industry professional. Tapping into the expertise that comes from an accounting team means you can get rid of these bad habits. Trust that your financial tracking and reports are in good hands, then turn your attention to other business responsibilities that need to be handled throughout the year.

As you are choosing an accounting team, make sure you find a contractor with experience helping small business owners. This ongoing expertise gives you the benefit of tapping into proven systems and strategies. You don’t need to reinvent the wheel when we already have formulated the best practices that can be implemented into your business.

Will You Benefit from Outsourced Accounting Services?

Right now is a great time to evaluate your business finances and determine the areas that need improvement. As you look at the weak points in your business, you will find that outsourced accounting services can be the perfect solution to fill in the gaps.

Look for experienced contractors that offer a variety of accounting services. It is essential that you find a team for ongoing accounting support, instead of only talking to your accountant at tax time.

Easier Accounting is available to offer the support that you need. Contact us any time to learn about the accounting packages and small business services that match the needs of your business. We will personalize the services based on your preferences and needs: (888) 620-0770.

Bookkeeping and Accounting Trends to Watch for in 2019

Now that we are a few weeks into the new year and the dust has settled after a busy holiday season, it’s time to look forward to the future. As a small business owner, you should be paying attention to bookkeeping and accounting trends that might impact your company.

Are there any changes or adjustments that you need to make this year? As you evaluate the industry trends, these things will help you be sure that you have the best bookkeeping and accounting system to support the needs of your company.

Why Bookkeeping and Accounting Trends Matter

Why does it matter if you are staying up to date in the industry? The truth is that your company will get left behind if you don’t stay current with the latest technology and services. It is important that you are aware of the changes that are happening so that you can stay up with the things that will help your business succeed in the future.

Most business owners know that bookkeeping and accounting are important. But it is unfortunate that these tasks often fall to the back burner because of other priorities that come up in the day to day responsibilities of running a company. If you want to keep your business on the path to success, then you need to be sure that you have a good financial system in place so that you are prepared for the future.

Consider this thought: if you aren’t keeping up with financial tracking and reporting right now, then you will run into problems in the future as your business begins to grow. Failing to have a good accounting or bookkeeping system in place means that your growth and expansion could be stunted because of poor decisions that are made along the way. Each time you consider a significant change in the company, such as hiring an employee or investing in business development, you need to be able to run the reports that show the current situation for your business. This information will help you make accurate decisions that match the needs of your company.

Predicting the Future with a Good Accounting System

Everyone wants to know what the future holds in store. Business owners would love to have a crystal ball that shows the future of the company and product development that needs to be addressed to stay ahead of the competition.

While it’s not possible to see into the future, the right accounting system can help you understand current numbers and projections, giving you a good idea of what you can expect in the future. Implementing the latest accounting services and systems means that you will be ready for whatever may come.

The right accountant will help you manage cash flow and expenses. At the same time, you can look for areas where profit margins could be improved. All of these services add up to the long-term success that you desire. So, the best thing that you can do is ensure that you are staying current with the trends so that you can build a solid foundation on which your company can grow.

Bookkeeping and Accounting Trends in 2019

Here are some of the accounting trends that we anticipate this year. Time will tell if our predictions come true. We are suggesting these potential trends based on the way the industry has changed in recent years:

  • Better Accounting Software: Computer technology is advancing, which means that software continues to improve. Gone are the days of recording hand-written transactions on a leger with a pen or pencil. Additionally, software has moved away from an on-computer installation to cloud-based services. This smarter software gives you the benefit of accessing your accounting information from anywhere in the world, as long as you have a good internet connection. As a result, you can improve your work processes and offer increased value for your clients.
  • Automation: One of the benefits of improved software systems is better automation for ongoing tasks. Keep in mind that it isn’t possible to automate all aspects of your financial management. But some of the busy work can be automated, helping to decrease the amount of time required to manage your accounting and bookkeeping. This automation is beneficial since you can save money instead of spending a lot on a full-time accountant employed by your company. The tools continue to get better with time, making accounting software more intuitive and easier to use.
  • Improved Partnership with Your Accountant: In the past, many business owners talked to their accountant once a year… at tax time. While it is important to utilize the services from a tax preparation expert, don’t overlook the benefit of ongoing communication with someone who can offer advice for your company. Even if you are working with an outsourced accountant, your provider can take a proactive approach to help with payroll processing, tax strategy, cash flow planning, and more. Ongoing services throughout the year will improve the overall benefits that are available for your business.
  • Millennial Workforce: It is interesting to see how the workforce is changing with time, especially as the millennials reach career age. According to INC.com, 25% of the workforce is the millennial generation. As a result, new ways of thinking are being brought to the industry. This generation leverages technology to create results that weren’t available in the past, giving you more of an edge when working with an accounting team that understands the latest trends and changes.
  • More Outsourcing and Gig Work: As the workforce changes, many companies are choosing to hire freelancers for contract work. It can be a burden for a business to bring on a full-time employee. Not only does the person’s salary need to be paid, but other expenses are incurred for office space, benefits, and more. Business owners are turning to freelancers as a way to cut overhead expenses and maximize the skill set that is required. As a result, there are more options for outsourced accounting and bookkeeping services. You can take advantage of the experience of a knowledgeable accountant while minimizing your cost at the same time.
  • Bookkeeping to Accommodate Cryptocurrency: Another thing that is shifting in the industry is the implementation of practices to record and track cryptocurrency. While it seems as though cryptocurrency is still an online fad, don’t overlook the importance of being ready with accounting systems if a large portion of the population starts using these currencies. “Triple entry bookkeeping” is required instead of the standard double-entry bookkeeping since three parties are involved in the transaction: two strangers as well as a third party that issued the cryptocurrency.

There’s no question that the accounting and bookkeeping industry is being shaped each year by the different software advances and the economic changes that are happening. While we can’t predict the future with accuracy, you can look forward to the years to come knowing that you are prepared when you have a good accounting system in place.

Protect Your Company with Accounting and Bookkeeping

Bookkeeping and accounting might seem like a chore, but there’s no question that these tasks are essential to protect your company for the future. If you don’t already have a good system in place, then right now is the best time to get started. Talk to an accounting team about the options that are available to match the needs of your business. Make sure that the accountant is considering all aspects of the industry, including anticipated bookkeeping and accounting trends this year.

If you already have a bookkeeping and accounting system in place, then you need to evaluate the effectiveness of the current system. It is a good time to optimize your processes so that you are ready for the changes that might come.

Choosing an Accounting Service

Is it time for you to hire an outsourced accountant? Here are a few things to consider as you are making this decision for your business needs:

  • Experience: Choose an accounting team that has industry experience related to your company. Previous experience with other similar businesses means that you can rest assured knowing that your financial needs are in good hands.
  • Flexibility: Every company is unique, which is why it is important to choose an accountant that understands your unique preferences and requirements. Your accounting services should be customized to cater to the requirements that match your business flow and industry.
  • Reputation: Also, don’t overlook the importance of hiring an accounting team that you can trust. You are handing over sensitive information about the financial health of your company. As a result, you need to be sure that you are protected by working with a reputable team. Look online to find information about the outsourced accounting team that you are planning to hire.

Are you interested in learning more about the bookkeeping and accounting trends for 2019? We are here to assist! Our team at Easier Accounting is happy to answer your questions and help you evaluate the accounting services that are available. You are welcome to call us at: (888) 620-0770.

New Year’s Resolutions for a Business

The end of December is usually the time when people set goals and intentions for the New Year. The ending of a year can be a symbolic time to let go of old habits and implement new practices that will set you up for success. What are your New Year’s resolutions this year?

It is common for people to have personal goals, such as weight loss, organization, relationships, and more. People want to improve and grow each year, and these goals can help you achieve the growth that is needed.

At the same time, business owners have the unique opportunity to set company resolutions as well. As you are determining your personal goals, don’t overlook this chance to identify new goals for your business efforts.

Reflection and Forward Motion

There are two important aspects that need to be addressed as you are identifying your New Year’s resolutions. First, you need to start by reflecting on the things that happened in 2018. Identifying your current position will give you the reference point to know where you are starting. Look at 2018 with transparency and an open mind. This reflection will help you see the things that are working and the areas of improvement.

While it is easy to focus on the areas of improvement and build goals around these topics, don’t forget to identify the things that have been working. When you see the systems that are effective in your business, then you can set goals to build upon the successes and boost the progress of your company.

Next, you need to determine where you want to be in the future. It is important that you “put a stake in the road” so that you can see where you are headed. Identifying where you want to be in a few months and a few years is necessary. This vision will help you identify goals that will lead you to the overall success that you desire.

For example, if you are looking to improve your business profits by 5% this year, then you need to set business New Year’s resolutions that support this effort. These resolutions might be focused on decreasing spending, increasing receivables, and optimizing systems to improve productivity.

New Year’s Resolutions to Consider for 2019

If you are a small business owner and you need help setting your goals for the New Year, then we would like to offer a few suggestions to support your efforts. Here are some business New Year’s resolutions that you might consider:

  • Improve Work-Life Balance: It is easy to get wrapped up in business tasks, causing your family to be neglected. Instead of spending all of your waking time in the office, you need to find balance in the activities of the week. While it is important to keep up with business responsibilities, you shouldn’t overlook the most important reason why you are building a business: to have more freedom and spend more time with the people that you love. Set a goal to optimize your schedule so that you can improve your work-life balance in the New Year.
  • Delegate Busy Work: In the beginning, many new business owners carry a full range of responsibilities. Not only are you focused on business development, but you are also involved in employee hiring and management, inventory stocking, marketing, customer service, and more. It’s easy to see how your schedule quickly fills up with business-related activities! If you want to enjoy 2019, then set a goal to delegate some of the busy work. You are overseeing the workings of the company, which means that you shouldn’t be spending your precious time on tasks that can be outsourced to others. Assign internal employees to take over tasks such as filing or bookkeeping. Or, look for outsourced services to support with these tasks, such as an accounting and bookkeeping service.
  • Improve Business Promotions: If you feel like you are stuck in a rut when it comes to bringing in new customers, then it’s time to add a fresh twist to your promotion and marketing efforts. You want your business to grow, which means that you need to bring in more customers and increase the sales that happen with current customers. Create a marketing plan that boosts repeat sales and helps you promote your business more effectively throughout the year.
  • Implement an Online Marketing Campaign: The internet has become an essential part of business marketing and promotions. If you don’t have a business presence online, then right now is the time to start with your website and social media profiles. Even though it might seem a little overwhelming, a little bit of effort can go a long way to help you connect with the right customers. Most business owners don’t have the time or knowledge to implement an effective online marketing campaign. So, the best strategy is to hire a company that understands your industry and offers the services that will support your needs.
  • Hire a Business Coach: Many people start a small business or entrepreneur efforts without experience or education with business topics. While you can offer products and make a few sales, your overall progress will be hindered if you don’t know how to change your current situation. Hiring a business coach can be one of the most effective things that you can do to bring in a fresh perspective for your company. Find someone who understands your industry and can offer solid advice to improve your results. Then, take accountability so that you implement the recommendations that are offered by your coach.
  • Find Local Networking Groups: It can be helpful to have local connections in the business industry. Networking groups and business organizations offer opportunities for you to find new clients and make business-to-business connections. Attend these events and gatherings with a sincere intention to meet new people without pushing your product or service too much. Build the relationships first, and then the business growth will naturally follow.
  • Improve Cash Flow Management: Cash flow will make-or-break your company. Even if you have a great inventory and money coming in, you won’t be successful if you are spending more than you are earning. If you can’t create enough capital to invest back into the company, then you need to make a few changes with the day-to-day finances of the business.
  • Boost Productivity: Not only do you need to evaluate your own productivity, but you should also look at strategies that can be implemented to improve employee productivity as well. It is surprising to see how a few small changes can have a domino effective to improve overall results in the company. Look for ways that you can improve internal systems to support employees and management in productivity improvements.

Setting the Right Business Goals

The most important thing that you can do is make sure that your New Year’s resolutions align with the vision that you are holding for your business. You need to consider the possibilities that could happen in the future. Observe the things that are happening in the industry, and then choose proactive goals so that you are staying ahead of your competition.

When you are setting new goals, make sure that these resolutions are measurable, achievable, and relevant:

  • Measurable: Most business owners have the intention to increase profits. But setting a goal to “increase business revenue” isn’t clear enough to help you determine whether the goal was reached. Put a number on the goal and make sure that you can measure the progress. For example, you might set the goal that you want to increase revenue by $24,000 this year, which means that you need an average increase in monthly profits that is at least $2,000. Identify your numbers, then find the action steps that need to happen so that you can hit the desired milestones.
  • Achievable: You might love the idea of hitting $1 million in sales this year. But, it’s a stretch to hit that number if you barely made it to $100,000 in 2018. Instead of setting an impossible goal, look for ways that you can implement incremental steps that will move your business in the right direction. Consider your current progress and identify a stretch goal that can be reached if you put in the effort that is needed.
  • Relevant: How does your goal line up with your overall mission and vision for your company? Relevancy means that you are choosing the New Year’s resolutions that align with the long-term results that you are trying to achieve. For example, a good example is to connect with 50 new customers each month, which will help to increase revenue and build your warm market for the future. The goal should make sense for your company and improve the business in some way.

Setting New Year’s resolutions for your business can help you build momentum in the New Year and set your company up for success. If you are thinking about outsourcing options as one of your goals, then our team is here to assist. Easier Accounting specializes in small business finances. We offer a variety of services to support your financial goals and keep you on track throughout the year. Learn more by calling us at (888) 620-0770.

Essential Factors to Consider When Choosing an Outsourced Accounting Team

If you need accounting support, then the most common approach is to find an accountant in your local area. There is nothing wrong with working with a team that is close to home. But, you shouldn’t overlook the other options that are available in the industry. Before you rush into this decision, the best thing that you can do is learn more about the benefits of outsourced accounting.

Employee, Local, or Outsourced Accounting Services

There’s no question that you need accounting support, especially if you don’t have much experience with financial reporting and bookkeeping. Don’t waste your time on tasks that could be assigned to an industry expert. Instead, you need to look for the right services that will match the needs of your business.

One of the most common mistakes made by new homeowners is that they hang onto many of the responsibilities that could be outsourced. You don’t need to manage control over the busy work. Instead, find the right team to support your efforts so that you can focus on the business building tasks that are required. There’s no reason why you should be sending invoices or managing the bookkeeping transactions that are moving through your company. A better solution is to create the right system to outsource these tasks so that you have the necessary support for the overall efforts and vision of the company.

Bookkeeping and accounting should be the first thing that should be handed off to an experienced team. Here are a few options if you are looking for assistance with your financial tracking and reporting:

  • Employee: You have the option to hire an employee with a background in finance. If you want to have someone in-house, then make sure to choose an employee with experience in the industry. You need to hire someone who can take responsibility for the tasks and ensure the quality of work that is completed. But, you need to understand the drawbacks that come from hiring an employee. If you hire someone, you need to pay the salary as well as the cost of benefits that are required. Plus, employment taxes can add up over time. Most businesses find that an employee is more expensive compared to outsourced accounting services.
  • Local Contractor: You can see that hiring an employee isn’t always the best solution. So, you might turn to the local business results to see if you can find an accountant to help with the services that you need. A local contractor can be helpful in many ways, and some business owners like the comfort of meeting with someone face-to-face. But, if you limit your options to local services, then you might miss out on the benefits available from working with a team in a different location. There’s no reason to limit your choices, especially when the local services are more expensive compared to the outsourced options that are offered
  • Outsourced Accounting Team: Finally, the most popular choice is to choose an outsourced accounting team to assist with your books. Looking online will open up many windows of opportunity. This process allows you to choose a team the provides more than basic accounting services. You can find a company that specializes in small business accounting services to match the needs of your company.

Hiring an outsourced accounting team is one of the best ways to keep your costs low and maximize the benefits that are available. These services are catered to match the needs of your company while ensuring the long-term results that you deserve. We live in a digital world, which means that there is no reason why you need to have someone in your office or down the street. Instead, you can tap into the automation and cloud-based accounting that can improve your business systems with the support of a team offering these services online. If you are interested in learning more, then you need to talk to our experienced team at Easier Accounting for the full details about the ways our services will support your business goals.

Hiring an Accounting Team? Consider These Factors

Now that you can see the benefits of hiring help for bookkeeping and accounting, it is time to hire the experts who are a good fit for your business goals. Here are a few factors that should always be considered before you move forward with the decision:

  • Size of Your Business: It is essential that you consider the size of your business and the volume of transactions that are moving through the company. It is probably unnecessary to hire a full-time employee if you only have a few or a moderate number of transactions that are recorded in the books. This work won’t be enough to keep a full-time employee busy. At the same time, the size of your company should influence the team that you hire. If you are a startup or small business, then you need to pick a team that specializes in small business services (and skip a company that offers big corporate services).
  • Needs for Your Financial Goals: Identify the areas where you need the most support for your business goals. Are you looking for an accountant who only talks to you once a year to complete your annual taxes? Or, do you want a team that will take a proactive approach throughout the year to ensure the long-term results for your company? A variety of accounting services are available, including payroll processing, tax preparation and filing, long-term tax strategy, bookkeeping, invoicing, and more. Find a company that can support your goals with all of the work that needs to be completed throughout the year.
  • Qualifications of the Team: Your financial details contain sensitive information, which is why you need to be cautious about hiring an accounting team that you can trust. Learn about the qualifications, education, and experience of the accountant so that you understand the quality of services that are available. It might seem like a good idea to hire your niece to take care of the bookkeeping at a low hourly rate. But, many potential issues will arise if mistakes are made with the books. Never cut corners on the quality of bookkeeping and accounting services that are used for your business efforts! Instead, choose an accounting team that has hands-on experience with the services that are required for your business.
  • Cost of the Accounting Services: Finally, don’t overlook the price of the services that are available. The goal of outsourcing these services is that you can improve your profit margins, decrease spending, and maximize revenue as much as possible. Consider the cost of the accounting services to be an investment for your company. You need to understand the scope of work that will be provided as well as the cost that you will need to pay for the services. Then, compare this price with the expenses that would be required to support a full-time employee. You will see that it is usually more affordable to outsource these services instead of bringing on another employee.

Remember, that a big price tag doesn’t mean that you will receive the best accounting services. It is important that you hire an accounting team based on reputation, experience, and the scope of work that is provided to support your company. Evaluate the needs of your business and then find an accounting team to match.

You’ll Love the Services from Easier Accounting

At Easier Accounting, we understand that you have many options when it is time to hire the services of a company in the industry. We are here to support your goals and offer the advice that you need, without making you feel pressured into the services that we provide.

The best thing that you can do is have a conversation with our team. We invite you to discuss your needs with us so that we can determine if these services are a good fit for your company. If we discover that we can support your needs, then we can work together to design a custom plan that will ensure the long-term results that you desire.

We are striving to show you how affordable and easy it can be to hire an outsourced accounting team. We offer the full range of accounting services that are required, without the expensive price tag that is usually associated with hiring an accounting. By keeping our business online, we can minimize the overhead expenses so that these savings are passed onto our customers.

Are you interested in learning more about the ways that your company will benefit from outsourced accounting services? Then it is a great time to reach out to our team so that you can have a conversation. We offer information about the accounting packages that are available, so you can take some time to read through our website. Then, call us at your convenience when you are ready to learn more about the ways that our accounting services are transforming the industry. Easier Accounting is always here to help! Call today so that you can see if our services are a good fit for your company: (888) 620-0770