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Small Business Accounting: What You Need to Know

Every small business owner needs to understand the basics of accounting, because the financial tracking system is the foundation to help the company succeed. If you own a small business or you are putting together a start-up, then it is essential that you talk with a small business accountant to learn more about the financial systems that need to be in place. These are some of the most common topics that you need to consider:

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Use a Trusted Accounting System

It is essential that you use a high quality accounting system, because the software provides the framework that you need to stay ahead of the financial tracking for your company. Don’t make the mistake of using Excel or an outdated system that requires manual tracking and calculations.

You will find a number of cloud-based software programs that can be accessed from anywhere, making it easier than ever to keep up with the financial details for your company. Using a cloud-based accounting system is beneficial, especially if you decide to hire a small business bookkeeper to help with payroll, accounts payable, accounts receivable, and any other accounting support that your business needs.

Stay Current with Invoicing and Payments

Even though it can be a lot of work to keep up with the transactions, it is essential that you stay up-to-date with essential tasks such as invoicing, payroll, and payments. These tasks can easily be outsourced to an online bookkeeper, which is a great way that you can keep up with the financial tracking without dedicating your time to the tasks.

Most small business owners don’t have the time to manage financial transactions, but they don’t want to hire a full-time employee either. Instead of putting money into another employee, consider the benefits of hiring an online bookkeeping service that can help you keep up with invoicing and payments.

Monitor Financial Performance

Once you have a good financial tracking system in place, your small business accountant can help you run reports and decipher the information that is coming through. These reports are critical to help you assess the health of your company, so that you can make informed decisions about the management of the business. Run these reports regularly, so that you can stay current with the cash flow and profitability of the business.

Here at Easier Accounting, our team is ready to help you manage the financial details for your small business. We invite you to contact us anytime to learn more about the accounting and bookkeeping services that are available: (888) 620-0770

Hiring Independent Contractors? Don’t Forget These Important Steps

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

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

Ask for a Signed W9

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

Submit a 1099

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

Maintain Good Records

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

Have a Signed Agreement

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

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

Simple Strategies to Reduce Stress during Tax Season

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

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Gather Information about Expenses and Profits

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

Double Check Employee and Contractor Info

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

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

Evaluate Employee Benefits

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

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