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Accounting Trends that Need to be Incorporated into Your Small Business

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

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

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

Implement Cloud-Based Accounting Software

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

The problem with these outdated accounting practices is that everything needs to be managed by hand.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

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

Accountants Offer More than Just Tax Preparation

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

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

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

Outsourced Accounting Instead of an In-House Employee

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

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

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

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

Take Advantage of the Millennial Mindset

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

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

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

Focus on Specialization

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

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

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

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

Prepare Your Exit Plan

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

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

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

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

Talk to an Experienced Accounting Team

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

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

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

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

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

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

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

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Big Business Mistake: Procrastinating Bookkeeping and Accounting

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

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

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

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

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

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

Where to Start: Reclaiming Control of Your Accounting System

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

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

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

Employee vs. Outsourced Accountant

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

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

Dedicating Time and Resources to Get Back on Track

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

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

Prioritize Your Business Financials

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

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

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

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

Expanding Business Success with Accounting Services

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

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

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

Easier Accounting: The Best Accounting Team for Your Small Business

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

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

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

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

7 Biggest Financial Mistakes Made by Small Business Owners

The financial health of your business is a strong predictor to help you determine potential success in the future. Are you creating the foundation to grow and expand your company? A few simple accounting and bookkeeping mistakes might bring your hard work crumbling down.

Instead of reactively dealing with problems as they arise, right now is a great opportunity to make the commitment to proactively protect the financial interests of yourself and your company. Watch out for common pitfalls at the same time; it is important that you implement good financial systems that are built to last.

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Here at Easier Accounting, our goal is to keep you updated about the financial management of your small business. Here are a few small business accounting tips to help you avoid the common financial mistakes:

Mistake #1: Do-It-Yourself Tax Filing

Tax season can be stressful, and many small business owners make it worse by trying to handle their own taxes without talking to a professional. Even if you have experience with tax filing, you should still consider the benefits of tax services. You are already juggling enough to manage your other responsibilities, and tax paperwork will just pile on the work that needs to be completed.

To make things worse, some small business owners attempt to handle their taxes without any previous experience. Tax law can be confusing, and it changes every year. Instead of wasting your time trying to decipher the newest laws, it is essential that you have a professional who understands the nuances of your paperwork.

In serious situations, you might make a mistake on the paperwork… resulting in an audit or problems later on. Avoid these issues by hiring a small business accountant who can help you maximize your deductions and optimize your profitability for the year.

Hiring someone to help with tax services, such as quarterly and annual paperwork and filing, will reduce your stress levels and help you focus on the activities where you shine. It is worth the investment to enjoy the many benefits that are available.

Mistake #2: Failing to Hire a Bookkeeper

How can you manage the financial health of your company if the books aren’t up-to-date? Ongoing bookkeeping services are essential to help you manage outgoing expenses and income received. This tracking ensures that you are keeping up with important payments and staying ahead of the cash flow so that you can pay your employees each month.

Most of the time, small business owners get behind on their books because they are attempting to handle the bookkeeping on their own. Then, they find it hard to carve time out of their busy schedule to sort through receipts and balance the accounts each month.

Instead of over-committing your daily activities, find an accounting team that can offer the ongoing bookkeeping and tax planning services that will help you stay ahead of these tasks.

Mistake #3: Hiring the Wrong Financial Professional

Once you have made the decision that you want to hire a financial professional to help with bookkeeping and accounting, take your time to assess your options to hire the right person. For example, some business owners choose to hire a secretary-level employee to handle the bookkeeping instead of investing in professional accounting services. Even though the secretary might be able to keep up with some of the busy work, there is a higher possibility of error since that employee doesn’t have any experience with accounting.

Make sure that you choose a financial professional with previous related experience. It makes sense that you should pick someone who knows the ins-and-outs of small business accounting since you have a small business! Tap into their expertise to boost your numbers and maximize company profits each year.

Instead of bringing in an employee, you should think about outsourcing these tasks to an experienced team. Many business owners find that it is cheaper to hire an outsourcer compared to a full-time employee. At the same time, you are tapping into many years of experience that can be used to improve the financial outlook for your company.

Mistake #4: Overspending on Unnecessary Tools and Equipment

When was the last time you audited your spending to cut expenses? Even if you are bringing in a lot of money, you won’t be getting ahead if your expenses are high. These expenses can quickly add up over time, especially if you have ongoing monthly payments or annual overhead costs.

Look at your expenses to determine whether each line item is essential. Then, get rid of anything that isn’t being used or might not be unnecessary. For example, you might be able to get rid of an outdated software and upgrade to a cheaper solution that offers better efficiency.

It might be fun to invest in the latest-and-greatest computer systems or brand new office furniture. But, these expenses aren’t a good choice if your business doesn’t have the cash flow to support the purchases.

On the other hand, the right tax strategy can help you learn when to make these purchases to manage your tax burden in a given year. Sometimes, it might make sense to purchase equipment or furniture that is needed before the end of a calendar year, so that you can use the deductions to manage your tax bracket. These factors vary each year, which is why you need to make sure that you have an experienced accountant who can offer personalized advice for your tax strategy throughout the year.

Mistake #5: Mixing Personal and Business Finances

Even if you have a home based business, you need to be careful about keeping the expenses separate. It is common for small business owners to use the same credit card and checking account to pay for business costs and buy groceries for the family. These co-mingled expenses can muddy up the books and make it difficult to sort through business write-offs when it is tax time.

Set clear boundaries to make sure that you know the line between business and personal spending. This approach will help you to leverage your business write-offs as much as possible while maintaining documentation for all of the business expenses.

The IRS doesn’t like to see the mix of personal and business expenses. If they identify signs that your family vacation was mixed in with your business spending, then they could take an aggressive stance by auditing your company and charging fees for overdue taxes.

Mistake #6: Skipping Tax Payments

It might be surprising to learn that you need to make quarterly tax payments or bi-weekly employment tax deposits. Most people without a financial background mistakenly assume that they only need to address tax payments and paperwork once a year.

Missed payments could result in penalties and problems later on. Talk to your accountant to learn about the ongoing payments that need to be made. Your accounting team can handle the paperwork and simplify the process so that you don’t have to stress about anything.

The goal with these tax payments is to estimate the amount of money that will be due for the year, then break it into smaller payments. The right accounting system can help you track current numbers so that you always know how much needs to be paid when it is time to send a quarterly tax payment.

Mistake #7: Misunderstanding Credit Agreements

If you have a small business loan or company credit card, then you need to make sure that you understand the agreements for each line of credit. Even though you are making payments on time, your credit position might not be optimized if you don’t understand the interest costs and fees that you are paying. Look at the agreements and read the fine print to know what to expect if you carry a balance on that card.

There are situations where you might already be tied into high-interest rate cards or unreasonable fees for the money that has been borrowed. In these scenarios, consider contacting the credit company to find out about payment options or interest-lowering steps that can be used. Sometimes a simple phone call can go a long way to help you save money by reducing credit-related costs.

Remember, there is a wide range of financial services that are available. So, if you aren’t satisfied with your current credit card or business account, then you might make the switch to something that is a better fit for your company.

Hire the Best Small Business Accounting Team

Here at Easier Accounting, we offer the services that you need to help your company succeed. We know that small business owners are juggling many responsibilities, and our goal is to help by simplifying the financial strategy so that you can maximize profits.

Accounting services are more than just basic tax filing and income reports. We will strategize with you to show solutions that will improve the financial health of your company. Our services can be catered to match your needs.

Learn more about how you can benefit from small business accounting services by contacting us to schedule a consultation: (888) 620-0770

Why You Need to Worry about Business Taxes in July

July isn’t tax season, so why do you need to think about your tax strategy during this time of year? It is common for business owners to make the mistake of ignoring their taxes until tax season rolls around. At that point, it is too late to change tax strategy to minimize tax burden. So, if you want to maximize cash flow and take advantage of all of the deductions that are available, then you need to be sure that you are looking at your tax strategy throughout the year.

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Tax Strategy All Year Long

The way your business is structured and the decisions that you make throughout the year can impact the amount of taxes that you will pay when it is tax season. If you want to improve your tax return, then it is essential that you are working with a small business accountant all year long.

When you understand more about your tax strategy, then you can adjust your ongoing financial decisions to be sure that they match up with your long-term goals for the company. Even small decisions can have a bigger impact long term because these small decisions can add up over time.

Leveraging Deductions that are Available

An experienced accountant will have a thorough knowledge of tax law, helping you to understand more about the types of write-offs that can be used for your company. It is inevitable that you will have ongoing expenses and costs to keep the business running, and these costs can be used as write-offs and deductions to reduce tax liability.

In some situations, it might make sense for you to invest in equipment and software at certain times. For example, your accountant might make the suggestion to purchase these items before the end of the year to increase spending a little more for this year.

The advantage of working with an experienced tax accountant is that you will have the peace of mind to know that they are familiar with the tax laws. You don’t have to waste your time learning about how tax laws impact your company. Let the professional handle these details for you, so that you can focus on the management tasks that are needed to help your business grow.

Here at Easier Accounting, we offer a wide range of accounting services to help your company. Contact our experienced team today to learn more about the services that are available. We are here to help! (888) 620-0770