By Cody McBride
How to Improve Business Bookkeeping
Managing accounting functions are part of small business ownership, and fortunately, different types of technology have made it easier than ever to keep accurate books. This, in turn, makes it simple to create and stick to budgets, have complete financial transparency in your organization, and make it easier to file your taxes accurately, and on time. Visser Analytics can be your partner in developing tools and utilizing systems to not only identify problems, but create solutions.
Why Financial Management Is Important
While you already know managing money is important in a startup, it’s good to recognize all of the ways good accounting practices can help your business. For starters, having an operating budget and a system for tracking money helps you stay on track with your financial goals and your business objectives. It also ensures you’re getting paid on time, and paying others on time. According to the U.S. Small Business Administration, good financial practices will help you identify problematic areas before they get out of hand. Perhaps most importantly, you’ll have your books in order when it’s time to file taxes, meaning you won’t be faced with any surprises or penalties. The SBA offers resources with tips for fiscal management.
Setting Up Your Books
If you’re just launching your small business, you’ll want to set up a financial management system prior to start-up. This includes ensuring your business is registered, you have a business account established, a budget created, and that all hires have filled out the appropriate tax forms. Remember, according to the U.S. Internal Revenue Service, employees and freelancers/independent contractors have different classifications. Small businesses can also have fluctuating income and expenditures during the early days, so carefully tracking accounts payable and receivable will be important for evaluating revenue trends and making adjustments accordingly.
Use Tech To Your Benefit
Technology can help you manage the financial elements of your business in numerous ways. According to Tech Radar, deciding which software program to use depends on your business needs. For example, Sage Accounting accommodates multiple users, but has a bit of a steep learning curve. Kashoo, on the other hand, is ideal for companies that service clients on a global scale, and need multi-currency support. A program like Wave comes with tech support, and allows for free production of receipts, accounting, and invoicing functions, but is basic in other areas. Your best bet is to identify the features you need from an accounting software program, then read reviews and compare prices to select the best fit. If possible, consider a trial offer to ensure a program works for you.
Use Apps For Money Management
According to National Funding, apps can allow you to easily access your company’s financial data from any location, at any time. Much like software, you’ll want to select apps that help you achieve your accounting goals. An app like Expensify will allow you to take photos of receipts and then auto-log them; Square is well known for making it easy to take payment from customers using your smartphone; InDierno is a robust program that’s a bit pricier, but handles myriad financial services, like linking business accounts and tax prep programs. It can even generate financial statements and find ways to improve finances.
Hiring an Accountant
While there are a number of exceptional software programs and applications that can streamline and improve your company’s financial functions, an accounting professional may be the better choice in some situations. Even when utilized in conjunction with financial management software, accountants understand continually changing tax codes and can help ensure you are appropriately classifying exempt and nonexempt employees. They may also be able to spot red flags faster than a program can, which can help you avoid fines and other hassles. Even if you don’t need a full-time accountant on staff, having one on retainer can be well worth the investment.
Small businesses often operate on tight budgets, where every penny counts. Utilize
your resources wisely, track all financial transactions, and you’ll be on the right path to
About the Author
Cody McBride is an excellent content creator, working with TechDeck.
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