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When initiating a business, you might decide to put off many operational aspects until a later date. However, it is never too early to set up an unpretentious accounting function. Whether you’re tracing your bootstrapped expenses or revenues, it is never a wise choice to go too far in the process without launching an accounting system. It does not have to be a complex system, however, excel sheets won’t cut it. It is valuable to institute an accounting system that supports your business model and unique business needs while keeping a focus on your future goals and ambitions for your business.

Here are few ways to manage your accounting needs in the best way possible.

Set Up a Simple Accounting Function

When you are just initiating your business, you don’t yet require something fancy for your bookkeeping. There are many good options out on the market that are simple and convenient for a new business. Systems like QuickBooks and Xero are user-friendly and inexpensive, which is exactly what a business such as yours requires at this point in time. There are also some free options for you if you are short on cash, however, they will only offer very limited features.

A simple accounting function will take care of everything related to your payroll, invoicing, bookkeeping, and payments, which takes care of most of your basic needs. Be sure to check all features before implementing a system and ask for a demo so that you get a fair idea about its functionality.

Set a Chart of Accounts

It will suffice to say that the chart of accounts would form the core of whatever accounting system you use. It is basically a listing of all of the accounts that are included in the general ledger of a business. It helps you to locate specific accounts quickly and conveniently. It must be created to cater to the unique needs of your business and track income and expenses appropriately.

Open a Business Account 

Irrespective of the fact that your business is bringing in any revenue, you must get a business account right at the start. Personal and business finances must be kept separate at all times as this will save you from many troubles later. Banks, these days, offer online portals that can be used to manage your finances as you please. You can authorize your bank to make certain automated payments that are of high priority so that you never miss them. Moreover, the newly established accounting function has the capacity to integrate with your bank account, which can be extremely efficient for all of your business operations.

Hold On to your Receipts and Invoices

All invoices and receipts must be held and stored in a suitable place for future reference. Whether they are paper or electronic, develop a bookkeeping habit of properly storing all information and proof of your transactions. This will ensure that you have a headache free tax season at the year-end because it will be easier for you to account for everything.

Stay on Top of your Tax Obligations

This might be surprising, but you need to think about taxes in your accounting function even before you start sales. Your business must develop a good standing in terms of both a provincial and federal tax standpoint, including all fees and registration requirements. Your taxable income is your net income, which is deduced after deducting all expenses. This is why it is important to keep a record of all important documentation as it will make the whole process easier.

Stay on top of your payroll taxes and 1099s because that is the government’s money which you are assigned the task to hold. Therefore, you are required to account for it. Find a reputable tax expert along with your accounting function that can help you stay in acquiescence with your tax responsibilities and preemptive preparations to curtail the tax bite.

Create an Effective Payment Collection Process

Every business has an accounts collection system installed that manages accounts receivables. Your bookkeeping system must guide you with the open invoices and balances. All payment terms must be clearly highlighted on invoices. When collecting payments from your customers, be sure to remind them on the due date as well as 2-3 days before. Your clients should be clear about your payment terms because you cannot afford a negative cash flow at such an early stage of your business. Start with a simple payment collection accounting function and gradually start accepting checks and other forms of online payments.

Forecast for the Future

Projecting expected expenses will help you deal with the cash burn. Tracking how much runway you have in terms of cash allows you to better anticipate and plan for the future. An accounting function that can help you develop better future projections is essential in this day and age.  

Check out America's Best Bookkeepers

About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

Office clerk searching for files into a filing cabinet drawer close up, business administration and data storage concept
It’s a common practice among accounting and bookkeeping departments to have multiple filing cabinets, including locked ones, to protect payroll and other private information. Access to financial files and data should be limited to certain key people in the company. To protect the information, it is critical to implement a file system in your accounting department; however, it can turn out to be a tricky task if not done correctly.

What causes a file system to collapse? It is highly likely that it was not much of a system to begin with. Chances are that you had assorted the files randomly without giving it much consideration at the beginning. Simply placing a label on your files will not turn it into an effective system. To implement a file system that can billet any type of paper, whether its at home or in the office, all you need are various colors of 2/5 cut tab colored folders and box bottom hanging folders.

Categorize the Files

The first thing that you need to do is sort the files into categories. Sort through your current pile of paperwork and arrange everything related to finances in one category, fixed assets into another, and so on. The focus at the moment is not on the detail, rather on assorting documents of similar nature together. Later, we will worry about sub-categorizing them. Credit card bills and bank statements all fall under finances in this step and will be separated in the next step.

Create Subcategories

Once you have arranged the documents according to their respective categories, it’s now time to subdivide them so that you exactly know where to search when looking for the respective information. Finances for an accounting department can be sub categorized into checking accounts, saving accounts, and credit card accounts. Be specific about your subcategories and don’t just use random words for labeling them. This kind of arrangement will help you clearly identify what you want to look into.

Color Coding

The major categories for all of the documents should be assigned different colors that will differentiate them from the rest. Put the files in hanging file folders together with their respective categories. If you have selected a green color for your accounting documents, the subcategories can be in other shades of green. While filing your retrieving papers, this will save you a huge amount of time. Your brain is better able to sort stuff out when things are highlighted by different colors. Implement the file system in your office which allows you to work effectively through each category without wasting time with mixed up information.

Make Labels

After coloring is done for each file, it is now time to label them. Advance from general to specific categories. For your accounting office, the general label can be credit cards while specific labels can be Visa, Master Card, etc. After labeling the files, try to arrange them alphabetically so that you can quickly move to your desired paperwork. The point is to arrange similar files together in close proximity.

Expenses should be filed distinctly from payroll and other accounting aspects. If certain transactions belong to more than one area, such as expenses and fixed assets, make copies of the paperwork and put the documentation in both files after labeling them. Implement a file system that categories expenses by vendors’ names and in alphabetical order. Fixed assets can be categorized by purchase dates.

Filling your Drawers

This will be the last step of your filing process. By now, you have almost sorted most of your accounting documents. All you need to do is put them in a place where you can easily access and identify them. Put everything in a drawer in alphabetical order and place the colored files in hanging box bottom folders to ensure that they stay upright within the drawer. The 2/5 cut tabs are places above the hanging files so that it is easy to decipher each category.

If you successfully implement the file system mentioned above, your accounting business will receive a major boost.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

 

 

 

 

 

Confused upset young man working on computer
With small businesses, resources are often in shortage. Reducing the time and effort you spend operationally on processes like accounting and financial management can help you save time and money in the long run. In an effort to save time and conserve resources, small business proprietors frequently overlook little things that can make a huge impact on their company. One such area is managing the business’ bookkeeping finances. If done right, it can give you the financial flexibility you need; done wrong and it can be a drain on the business operationally. Here are five common accounting mistakes that analysts make.

1.  Using Generalized Financial Statements

If analysts take the time to actually read the finances, it is likely that they digest them through a third-party provider. The problem with this approach is that each of these services modifies each company’s unique financial statements to fit into a pre-created template. These services do this to ensure comparability across companies, industries, and nations.

2.  Not Understanding the Reflexivity/Interactivity of the Three Major Financial Statements

Few analysts take the time to trace the dollar of capital raised within a company through the income statement to the bottom line and then back to the balance sheet again. Nor do they relate changes in the balance sheet accounts to the cash-flow statement to identify huge inconsistencies in either amounts or categorizations. Instead, most analysts investigate the statements in isolation from one another.

3.  Not Creating Apples-to-Apples Comparisons in Time

This particular accounting secret is one that people rarely discuss publicly. Specifically, have you ever noticed that the temporal dimension of the income statement, balance sheet, and cash-flow statement are all altered? The income statement is stated quarterly for the first three quarters of the year and then annually, however, the balance sheet is always reported as a quarterly snapshot — even when it is the fourth quarter. Last, the cash-flow statement is always shown as an accretion of cumulative cash for the year. Each of these is very different from one another and they only align in the first quarter for any company. Companies usually play games with these time dimension mismatches. Consequently, analysts must put all of the financial statements on the same temporal dimension.

4.  Not Adjusting Statements for Distortions

This is a classic problem in financial statement analysis. Despite this fact, most analysts do not amend financial statements to adjust for one-time items, including write-offs, sales of divisions, accounting revisions, and so forth. Precisely what to look for is outside the scope of this article, but most analysts simply do not take the time to do this. As a brief tip, if you ever see a write-off number that is a bit too round, such as $500 million or $75 million, you can bet that the amount is management’s estimate of a loss and not the actual loss. Consequently, you can expect future corrections to this initial write-off estimate.

5.  Not Reading the Footnotes

Lastly, in spite of all of the warnings to pay attention to the information contained in footnotes, most analysts do not read them. Nor do most analysts take the numbers from the footnotes and put them into the main three bookkeeping financial statements.

An example of this would be to take the detailed property, plant, and equipment figures reported in the footnotes and incorporate these into the analysis of the entire balance sheet. It was once taught that a company was playing games with its useful expected lives figure because when looked at the common-size over assets financial ratios, it could see that one of their property, plant, and equipment numbers had gone down massively on a relative basis. This distortion, in turn, had big ramifications for the reported depreciation and hence net income, operating cash flow, and free cash flow.

Conclusion

While there are many other accounting mistakes that analysts can make, if you correct those highlighted above, it is believed that you will successfully separate yourself from your analyst peers and improve your returns.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

Person using a futuristic head up display (HUD) interface screen with data and key performance indicators (KPI) for business intelligence (BI) analytics, concept about financial dashboard, technology and virtual reality (VR)
Financial dashboards for businesses are essential for evaluating daily business operations on a regular basis. Financial dashboards guarantee to keep the business on the right track. It is one of the most vital elements of any business. Businesses may use various techniques to invest in a proficient financial management program to ensure that the best practices for proper inventory management are followed.

Financial management is a major part of any business’s supply chain management, manufacturing, customer relations and every business activity. The stock inventory management aims to have the correct products available for sale. Tracking inventory in real time is effective in streamlining the entire operations process.

The dashboards help the business to have the correct products available at the right time. It prevents out of stock products and funds from being tied up in surplus stock. Moreover, stock inventory management helps your business ensure that all products are sold in time to prevent spoilage. It also saves millions.

Benefits of a Financial Dashboard

Financial dashboards provide a complete and detailed overview of an income statement with net profit, revenue, and other relevant performance ratios. Each dashboard represents four crucial financial indicators such as the operating profit, net profit margin, OPEX ratio, and gross profit margin.

The revenue is found in determining the selling price by calculating the total cost of goods sold without including details considering any other taxes and expenditures. The dashboards allow businesses to consider certain costs associated with their operations on a daily basis for bookkeeping.

One of the main metrics for these dashboards is the inclusion of income before interest and taxes or EBIT. The dashboards consider calculating all expenses and costs before interests; then the applicable taxes are included in the overall cost to determine net profit.

Calculation of Gross Profit Margin by Dashboard

The Gross Profit Margin for any business is essential for determining the total sales percentage with the revenue that remains after the bookkeeping of all direct costs with goods and services. The gross profit margin is useful in estimating how much the company has to invest, determines spending on research and development, and how effectively they can contribute towards earning a profit.

Top 3 Financial Dashboards for Your Business

Entrepreneurs are preoccupied with daily business operations and, often, they do not have sufficient time left for handling their finances. Many financial dashboards are available to help business owners effectively handle their finances. Most dashboards offer easy to read charts with colorful graphics. The most effective step for start-ups is to use online dashboards that help them track their finances as they are unable to hire an expert bookkeeper to manage business finances.

Here are some affordable business dashboards that will determine how to handle the finances of any business.

inDinero

inDinero was launched in 2010. This financial dashboard is suitable for start-ups. inDinero gathers all business transactions from the bank history as well as credit cards details and other financial documents are efficiently organized. The business owner does not need to spend hours in data entry. Just save the account number and bank information and it automatically categorizes transactions. Some of the categories of transactions are:

  • Advertising
  • Payroll
  • Dining and refreshments
  • Another spending for every month
  • Accounting reports

BodeTree

BodeTree was introduced as a financial dashboard in 2011 in partnership with Intuit, the company that launched QuickBooks. BodeTree relies on QuickBooks to assess different financial information from those who rely on QuickBooks for bookkeeping. It needs to be connected to the QuickBooks account. Once the connection is complete, it categorizes and generates a breakdown of all activities and expenses associated with each operation.

The BodeTree dashboard is named after the legendary Bodhi Tree, where the Buddha reached nirvana. Similarly, the dashboard will be able to determine a benchmark for the business depending on their algorithm based on the transaction and expenses history.

Corelytics

The Corelytics financial dashboard was launched in 2005; this dashboard works by importing all of the financial information associated with the business. It gathers information from different accounting programs including Sage, PeachTree, MYOB, and QuickBooks, among others, for the financial dashboard. After all of the information from each accounting platform is collected, Corelytics will get to work by categorizing every metric. These metrics, once generated, can monitor every transaction. Some of the metrics are:

  • Expenses
  • Gross margin
  • Revenue
  • Receivables
  • Owner compensation
  • Profits

Financial dashboards allow setting goals and objectives for each of the metrics above. The Corelytics financial dashboard highlights every single metric with different colors. The colors determine when each metric is not performing according to the standards of the business. This financial dashboard is one of the most useful for every business. It comes with a mobile application, allowing the business owner to monitor the activities on the move for better bookkeeping. It also won the Showcase award for the best dashboard.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

Rear view at two businessmen analyzing stats financial data on pc laptop, pointing at screen with rising graph and charts, discussing company growth, using easy accounting software for small business
Small business owners face the job of making sure that all of their accounting procedures are conducted as efficiently and accurately as possible. On the whole, company owners have to make a choice between a manual accounting method or accounting software programs. An accounting software system has many major advantages towards achieving faster growth in a company. More and more companies are choosing to use this method for the following reasons.

  1. Time Saving

One of the most important advantages provided by computerized accounting software is that it can save huge amounts of time for small business owners. They can easily make calculations for operations such as billing and payroll performed efficiently and quickly just by using accounting software programs intended for small businesses. They can also have access to their accounting records swiftly without having to go through huge files of paper. Businesses can give more time to their customers and focus more on their marketing functions which will help their business grow further.

  1. Reduced Errors

Manually “number crunching” presents opportunity for human error. This error can be costly for any small company owner who happens to be in a rush to finish an accounting task. Calculation errors can occur due to inaccurate inventory counts, incorrect total sales receipts, along with many other reasons.

With the help of computerized accounting programs and software, there is a drastic reduction in calculation errors. If you have accurate accounting information, it will also help you escape any tax blunders that could possibly lead to complications and difficulties with the Internal Revenue Service.

  1. Centralization

Using an accounting software in a business helps centralize and unify many aspects of the business’s financial management. A small business owner will easily be able to undertake tasks such as payroll, invoicing, inventory management, and some sides of customer relationship management, all from an accounting software program. A business owner will save money and time because of centralization as long as the owner does not need to buy separate software programs in order to perform operations such as invoicing customers.

  1. Makes Tax Compliance Straightforward and Easier

Besides presenting the amount of tax that is to be paid on particular invoices, accounting software also aids the business owner in preparing reports. An example of this scenario can be the amount of a particular tax the business owner has been paying during the course of a certain period. Also, accounting software makes it a lot easier to collect the information needed to complete and apply for essential government tax forms.

  1. Provides Tools for Analysis

If a business owner uses an accounting software, it will be just like having their own in-house financial consultant. The customizable reports will allow the owner to analyze and examine various aspects of the business as well as provide the information and statistics needed to make better and more informed financial judgments. Reports, such as a balance sheet, help summarize exactly just how well the business is doing.

Check out America's Best Bookkeepers


About Complete Controller® – America’s Bookkeeping Experts
 Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

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QuickBooks is a complex accounting software that requires proper knowledge and training. The nature of the application is quite multifarious which can create problems for users with little or no prior training.

Every department of business has multiple software for managing their workload online.  A sales force of a business uses a CRM system (Customer Relationship Management) to manage their customer feedback, connectivity, customer complaints and all other customer-related tasks. Similarly, to manage accounting and bookkeeping related tasks of a company, businesses often use proper systematic software that can help them in managing their finances. QuickBooks is one such amazing accounting tool that is mostly adopted by small to medium scale businesses.

What is QuickBooks Software?

QuickBooks is an accounting software designed by Intuit Inc. The software provides a set of accounting solutions to businesses which help in managing the payroll, inventory, sales volume and multiple other small business functions. The software’s key features are:

  1. Marketing based tools
  2. Products and supplies
  3. Services for the merchant
  4. Training solutions

However, every solution is designed in accordance with the needs of the business and industry they are operating in. The best thing about Intuit’s business solutions is that they have customized products for every contractor. For example, construction contractors get:

  1. A QuickBooks Enterprise solution for contractors
  2. A QuickBooks Premier contractor
  3. A QuickBooks Pro
  4. A simple starter plus pack

All of these products are specifically designed to meet the needs of the contractor to small to medium-sized companies. This makes QuickBooks the most powerful software which cannot be learned by using a trial and error method. Learning this software requires extreme practice and proper training. However, even trained QuickBooks users skip a few essential tips and tricks that can help in making the accounting and bookkeeping processes easy.

4 Things that you Didn’t Know you could do with QuickBooks Data

  1. QuickBooks is a gold data miner with different versions with different prices and features

As you already know, QuickBooks does not only come with one single software to fit every industry. Rather, it provides multiple solutions to its customers according to their needs. The features available in QuickBooks depend on your business type and the growth of your business. The data you will record through QuickBooks will be all yours. Once your data file is created, you have free access to all of the data which can be later used in a business analysis for your customer survey.

  1. Integration with other business applications that can indicate critical information about your business

Most small-scale businesses have multiple desktop or cloud-based software that help them in carrying out their business operations. By integrating this software with QuickBooks, you will be able to utilize your QuickBooks data with other business software. There are many other business applications that are now providing QuickBooks built-in integration.

  1. Utilizing QuickBooks Data

QuickBooks data has all of the major information about a business’s customers, products, employees, productivity level of employees and the volume of business sales. To best use this data:

  • You have to eradicate the data from QuickBooks and place it in the analysis database.
  • Then, you will need the tool for reporting and analysis process which is properly integrated with QuickBooks data. It will then allow you to see any type of data you need.
  • For bookkeeping purposes, you will be required to create a QuickBooks report that will help you in visualizing the data on a regular basis.

  1. It helps in decision making

As you save and monitor the data of QuickBooks in the shape of reporting files, your company will make more accurate decisions. You will be provided a clear picture of your business that will allow you to make wise decisions for your company’s success.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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In order for small businesses to manage and run their business expenses smoothly, it is essential to keep tabs on your cash inflows and outflows. No question about it, the significance of proper expense administration for any magnitude of business is huge. The execution of the best businesses practices is a giant factor towards the revenue, growth, and, eventually, success and achievement of the business.

Bookkeeping is an excellent way for small and medium-sized businesses to manage their business expenses. The concept of bookkeeping cannot be stressed enough, be it in any kind of occupation or any kind of management. By efficiently handling and keeping tabs on business expenses, owners can gain a multitude of advantages:

Block Unseen Sinkholes

At times, your money is lost in places it should not be. By managing your business expenses well, you will easily be able to find those unseen sinkholes.

Maximize Income

By getting rid of wasteful expenditures and making the best use of items that are considered tax deductible, business owners have a chance to achieve a noteworthy aggregate of revenue.

Generate Prospects For Growth 

For businesses owners, it can be a huge deal if they are aware of where their money is being spent. Not just that, it also makes a big difference in finding out how effectively that money is being spent. These two aspects are a big factor in the preparation and accomplishment of future growth of the business.

In order to improve your business expense tracking technique, business owners should implement the below practices in their business:

Be Certain That Business Expense Policy Is Firm, Clear, And Fair

The business expense policy of your company needs to be well-founded, fair, and unambiguous. If there are any exceptions, they should be set aside for exceptional situations. The organization should make sure their managers, employees, and clients are familiar and well-aware of the policies set in place.

When formulating a business expense policy, the one thing that should remain a priority is ease of communication. After all, you don’t want your employees to go through the company textbook every time they have a question just to understand the business expense policy. The key here is simplicity.

Keep Your Business Expense Reporting Procedures Clear And Simple

Keeping the importance of simplicity in mind, we will further elaborate with the next point. When we talk of simplicity, it has its benefits and advantages. The first point is, the simpler you keep your business process and procedures, the more your employees will be able to comply. The more simplified the procedure is, the more your employees will stick to it.

Secondly, if the procedures are complex in nature, it will increase the chances of inaccuracy in managing the business expenses. The more administrative boxes and excel spreadsheets you have that need to be entered, the more chances there will be a blunder made somewhere. These are blunders that could possibly end in forfeiture of an expense entitlement.

Finally, and most significant of all, simplicity means speed and swiftness. If the system is simpler, your clients and employees will spend less time on the business operations.

Gather Relevant And Required Information For All Business Expenses

When it is time to file tax returns, the one factor that can immediately kill the likelihood of you getting your hands on any money is non-compliant invoices.

Whenever a reclaimable expenditure is incurred, the associated invoices and receipts will guarantee you of getting your money back. This is why it is extremely important to save those invoices and receipts so that they can be accepted for a tax refund by the appropriate taxation office.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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As an owner of a small business, there undoubtedly a lot on your plate…maybe even more than you can handle. From generating ideas to executing them and from following up and organizing meetings, there are a lot of things that you have to take care of. There are professional accountants and bookkeepers that you can find to take control of your business finances. However, it is very important that, as a business owner, you too understand the accounts of your company. Following are 5 business accounting tips for business owners to run a successful business that is financially secure.

1. Review the Accounts on a Regular Basis

When you leave your finances to be handled by your employees, you will start trusting the account handler blindly. That being said, it is not advised to leave your accounts solely on any one person. As the business owner, you should have a clear picture of what is going on in your accounts department to make sure you know everything and can pull strings, when needed.

2. Cash Flow

In today’s fast-paced business world, as a business owner, you must be aware of your cash flow. This should be taken care of both annually and seasonally. In-depth knowledge regarding the highs and lows of your cash flow cycle is going to help in providing you with a clear understanding on whether or not you need to expand and when to do it.

3. Tax Details

The tax details are something that you should definitely keep a check on. When it comes to small businesses, the business tax is sometimes also your personal tax. This is why you should be well aware of the details and amounts you have to pay in taxes. This helps you understand the expenses which you can and should deduct along with all of the various different types of taxes you are paying. When you have a clear knowledge of your annual taxes, you will have a better understanding regarding how you can file advance taxes and the number of resources that need to be set aside in order to cover the government taxes.

4. Frequency of Bookkeeping

Oftentimes, if you are the one who is undertaking the accounting for your business, bookkeeping might be the lowest on your priority list. However, it is very important that you maintain your books on a day to day basis. By doing this, you ensure that the accounting of your business does not pile up and that the important data is not lost or forgotten.

5. Accounting Checklist

The business books along with the accounting details can sometimes seem very difficult to understand and maintain. This is why it is very important that you keep in mind the numerous things which need to be included. For this, you can always design an accounting checklist for yourself.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

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When you start a business, you do not necessarily consider the need to grow your company’s accounting functions. Accounting is a vital task that is performed by companies to record, gather and analyze financial data. This information is useful in performing daily business operations effectively. Historical financial information can also be used to come up with new ways to expand your business operations. A growth strategy that is based on the available financial information helps business managers make important decisions in their current business scenario as well as for future endeavors.

Based on experience, the accounting functions for a business tend to progress step by step. You will most likely not need a Chief Financial Officer on the very first day of business, however, there is always a need to grow your company’s accounting functions as the scale of your business widens. Some of the guidelines mentioned below will assist you in deciding when it’s time to really put your foot on the gas.

Part-Time Services or Outsourcing

At the time that your business starts operating, you are probably not in a position to hire a full-time finance professional. However, it is indispensable to keep accurate financial records from day one. In case you do not have the expertise to perform this task on your own, a part-time professional or an external service provider can do the job for you. Below are some of the tasks that are needed to be looked after.

Setting Up an Accounting System – Grow your Company’s Accounting

QuickBooks is an accounting tool that is preferred by many new businesses as it’s easy to operate. Your company needs to set up the format of your financial reports and decide on SOP’s to be followed by the accounting practices. During your initial phase, you will encounter many issues regarding the handling of accounts, however, the situation can be avoided through better organization of the work.

Bookkeeping

The day to day accounting functions need to be recorded in your books, as soon as they occur. It is not something that requires a lot of expertise and anyone with basic financial knowledge can do this. You can even handle it yourself or hire someone for the preparation of checks, invoices, or any other issues related to them. However, as your business operations foster, you will need to grow your company’s accounting management which is best handled by a professional and you should consider outsourcing the bookkeeping.

Another useful way to manage your books is by avoiding cash and running all of your transactions through a bank account. This way, you will be able to get a record of every transaction you made and it will also help you to cross check all of your entries.

Protection Against Fraud

In the earlier stages of any business, it is more susceptible to frauds and theft because there are no defined Standard Operating Procedures and you are also getting familiar with how to manage your accounting efficiently. When you decide to grow your company’s accounting functions, it helps you against these frauds and thefts because you will be better equipped to manage your money. It has been proven from research that almost half of small businesses are affected by such fraudulent activities, either by employees or external factors.

Tax Preparation

As your business grows, you will need to prepare yourself to pay all taxes. Depending on the type of your business, you may need to pay sales tax, property tax, payroll tax and so on. It is best to consult an expert to file your taxes as there are many complications which require a deep understanding of the taxation system. The outsourcing agency handling your books may also provide taxing services, so it’s better to consult them first before moving on.

Grow your Company’s Accounting with Full-Time Professionals

With time, your company will grow and you will realize that your accounting tasks are far more complicated now. This is an ideal time to either convert your part-time employee to full time or hire permanent employees for the task. You may not only require a bookkeeper but a CFO or a professional who can oversee the completed work. A CFO must be capable enough to handle all questions and must be able to work with you to construe the financial statements, deal with banks and investors, confront taxation issues, forecast future budgets and protect your company’s assets.

Once your business is at a scale that outsourcing professional services and hiring an internal CFO would cost you the same, then it’s better to do the job internally. A CFO is an employee of the company and will sincerely make an effort for its success as your interests are aligned. To grow your company’s accounting functions, this is the right time to hire a full-time CFO.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

 

 

 

 

 

 

 

 


QuickBooks Accountant and Tax Reports provides you with financial and tax information in the form of reports that contain adjusted journal entries, trial balances, listings of fixed assets and income tax details. You can save a considerable amount of time and effort through the use of bookkeeping tools such as QuickBooks. If you would rather have an expert opinion on the matter, QuickBooks offers you a way to prepare a copy of your data for your accountant or bookkeeper. You can limit the amount of access you want to offer using the customization tools in the software.

Accountant Only Reports

This kind of report would contain information for your accounting employees. Adjusted trial balances and journal entries are the main features of such reports. Entries that are posted to the general ledger are fully detailed in the report.

Account Activity Reports

All of the transactions and activities that took place related to your account are the highlights of such reports. Some of the major reports to be included are mentioned below.

General Ledger

The General Ledger is basically a list of all of the transactions that are posted to the respective accounts. It is the job of an accountant or bookkeeper to keep track of beginning and ending balances and include them in the general ledger.

Trial Balance

The ending balance for each account is highlighted in this report. These reports give you a clear picture of your current financial position. This information is important in terms of your future strategy for the business.

Journal

A journal report highlights all of your recent transactions in the form of a listing. The listing is always in chronological order.

Audit Trail

All changes that are going to affect your company books after a specific date are shown in the audit trail.

Voided Transactions

This is a report that consists of all null and voided transactions. An accountant gets the report ready in the accounting software, along with its history. The history is a detail of why the specific transaction was canceled or called void.

Listings

QuickBooks is also quite efficient in providing you the detail of all of your accounting lists. The name of every company related account, along with its remaining balance, formulates an account list. The fixed asset listing, which is a detailed description of an organization’s fixed assets along with their date of purchase and cost, helps the accountant make informed decisions.

Income Tax Reports

Filing an income tax return that is error free and on time is imperative for any business. The process must be completed by a professional or someone who has a complete understanding of IRS rules and regulations. QuickBooks allows you to make a variety of income tax reports for multiple purposes.

Income Tax Preparation

You have a chart of accounts and an assigned tax line specific to each account. The preparation reports give you a complete picture of your finances and taxes associated.

Income Tax Summary

The amount that has to be reported on the income tax form, as well as information about how it was determined, forms the essence of an income tax summary. You can either include the detailed description in the summary or form a separate report for that. It is completely at an accountant’s digression.

Some other reports that can help accountants in better decision making are as follows.

Financial Reports

Financial reports include your balance sheet, cash flows, and income statement. These are vital to decision making. Details about your accounts payables and receivables can be gathered from these reports. Knowing what you owe or others owe you is critical in terms of your future strategy.

Sales Reports

Sales made, orders placed, and pending orders are included in the sales reports. The sales team hands over the information to the accountant, which is then converted into readable information that makes sense. Sales are usually raw numbers, therefore, to make sense out of the data, you have to make the report in a way that is easy to comprehend.

Other types of reports include vendor and payable reports, payroll reports, budgets and forecasts. All are vital to the success of any organization.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.