Preparing your taxes early can help in alleviating last minute stressors and assist you in being better organized as you begin those first dreaded months of the year. Taxpayers experience dread as the new year approaches, but due to the global pandemic changing so many things, tax dread only seems to be getting worse. Due to these past two years having a significant toll on people’s finances, several things have changed, ranging from missed taxes, to unemployment, to people losing their crucial documents. However, getting ahead of the tax game can help and we have a few tips to get you on-track!
Gather Documents in Advance
Avoid the trouble of rushing for document collection at the last moment during the tax season by gathering important and necessary documents now. This will allow you to see what may be missing and give you ample time to locate the missing information or obtain it from the right people. Although this can still be stressful, your mind can be more at ease knowing you still have time to obtain the right documents.
Look Back at Last Year’s Return
Look back and think about areas that were problematic or extra stressful. Then think about how you can alleviate that stress for next year. For example, did you do your own taxes and run into any issues? Maybe consider hiring a professional to assist you this year or utilize a free tax-preparation service to avoid mishaps and stress for this coming year.
Consider Saving More
If you have a 401(k) or traditional IRA, you may get a tax break by contributing more money to your retirement account. That’s because contributions you make to these accounts are typically deductible on your tax return. Remember though, there are income restrictions and contribution limits that determine how much you can put in an IRA, and deferral limits on how much you can put into your 401(k).
Don’t Make Financial Decisions Based on Potential Tax Breaks
The IRS offers a plethora of tax credits and deductions that have the potential to reduce your tax liability. However, if you’re spending money strictly for the tax break, you may end up losing money. For example, if you donate $1,000 to a charitable organization solely to get a tax deduction, and don’t first ensure your contribution meets deduction requirements, you could be out $1,000 with no tax break to show for your donation.
Familiarize Yourself with Tax Rules
There have been an estimated 4,000 changes to tax codes in the past 10 years. Some tax breaks you have taken advantage of in the past may be gone now and there are likely new tax breaks you can now use when preparing your taxes. Even if you hire a professional, familiarizing yourself with tax rules can be beneficial and assist you in making the right choices.
Many taxpayers consider filing taxes a stressful experience, but it doesn’t have to be. Preparing for your taxes throughout the year can make the process of filing in April go much more smoothly. Ideally, you want to find an organization strategy that works best for you so you know when tax season comes everything you need is within reach. However, life does happen. We get busy and distracted, have major life events, and even natural disasters that can ruin our preparations. If these things do occur, know that there is still time if you start now. Go ahead and begin getting those documents in order so when next year comes (and it is coming!) you will be ready!
Accounting is the process of recording, assessing, and communicating financial transactions which helps individuals and organizations understand their financial health. This work is done by keeping track of expenses, profits, and losses. Effective accountants ensure clients understand their legal obligations, financial performance, and that they can develop budgets and plan for their future.
However, business owners need to also understand common accounting terms in order to fully grasp what their accountants are discussing. A broad understanding of the major principles of accounting can help business owners keep track of and analyze their business’s financial information. Below is a guide that includes some of the most basic accounting terms, their definitions, and industry acronyms. Business owners can use this accounting guide to better understand their accountant, financial records, and accounting software.
Accounts Payable
Accounts payable refers to the money a business owes to its suppliers, vendors, or creditors for goods or services bought on credit. A short-term debt that must be paid back quickly to avoid default, accounts payable shows up as a liability on an organization’s balance sheet. The sum of all outstanding amounts owed to vendors is shown as the accounts payable balance on the company’s balance sheet.
Accounts Receivable
Accounts receivable is opposite from accounts payable. Accounts receivable refers to the money owed to a business, typically by its customers, for goods or services delivered. For example, a distributor may buy a washing machine from a manufacturer, which creates an account payable to the manufacturer. The distributor then sells the washing machine to a customer on credit, which results in an account receivable from the customer.
Assets
Assets are resources with economic value which companies expect to provide future benefits. These can reduce expenses, generate cash flow, or improve sales for businesses. Companies report assets on their balance sheets. Asset types include fixed, current, liquid, and prepaid expenses. Assets may include long-term resources like buildings and equipment. Current assets include all assets a company expects to use or sell within one year. Liquid assets can easily convert to cash in a short timeframe. Prepaid expenses include advance payments for goods or services a company will use in the future.
Balance Sheet
Balance sheets are financial statements providing snapshots of organizations’ liabilities, assets, and shareholders’ equity at specific moments in time. Balance sheets represent one type of financial statement used to evaluate companies’ financial health and worth.
Chart of Accounts (COA)
A COA provides a snapshot of all the financial transactions a company has conducted in a specific accounting period. COAs help companies organize their finances and provide insight into organizations’ financial health for investors and stakeholders. COAs can include assets, liabilities, and shareholders’ equity.
Cash Basis Accounting
Cash basis accounting is an accounting method that does not incorporate transactions until the business receives or pays cash for goods and services. This method focuses on immediate revenues and expenses. This contrasts accrual accounting, which recognizes income at the time the revenue is earned and records expenses when liabilities are incurred regardless of when cash is received or paid.
Gross Profit
Gross profit, also called gross income or sales profit, is the profit businesses make after subtracting the costs related to supplying their services or making and selling their products. Accountants calculate gross profit by subtracting the cost of goods sold from revenue. Gross profit considers variable costs, not fixed costs. Analysts can look at gross profit as indicative of a company’s efficiency at delivering services or producing goods.
Profit and Loss Statement (P&L)
A profit and loss statement, also called an income statement, shows the expenses, costs and revenues for a company during a specific time period. This financial statement, along with the cash flow statement and the balance sheet, provides information about a business’s financial health and ability to generate profit.
Net Income
Also called net earnings or net profit, net income is the amount an individual or business earns after subtracting deductions and taxes from gross income. To calculate the net income of a business, subtract all expenses and costs from revenue. Sometimes called the bottom line in business, net income appears as the last item in an income statement. Investors and shareholders look at net income to assess companies’ financial health and determine businesses’ loan eligibility.
Retained Earnings
Retained earnings, also called an earnings surplus, refers to the amount of net income left for a business to use after paying dividends to its shareholders. A company’s management typically decides whether to keep the earnings or give them to shareholders. Retained earnings carry over from the previous year if they are not exhausted and continue to be added to retained earnings statements in the future.
While this accounting terminology guide barely touches the surface of accounting terms, this guide may assist business owners in understanding their financial information. We do encourage you to become familiar with more than these 10 terms as there are many more, but we hope this will be a good starting point for important information.
A preliminary understanding of accounting may assist business owners in realizing the necessity or benefit in hiring professional accountants to help them with their business’s finances. Understanding your company’s financial statements will allow you to feel comfortable working with accounting professionals and asking them questions. Being able to interpret your financials can also help operationally by identifying areas that may need changes.
If you want to become more marketable you must commit to continually expanding your skills and knowledge. Becoming marketable is about making yourself indispensable to your current employer or irresistible to prospective employers. You will need to be current in your field so you stay competitive, this will put you in a strong position to compete for the job you want. The goal is to make yourself stand out in a crowd by promoting your own skills and experience. So, whether you are in the market for a new job or new position at your current job, you should be seizing every opportunity to show your current (or future) employers how amazing you are.
Tip #1-
Keep skills fresh, current, and relevant
Technology is constantly evolving and with that comes the need to stay current with those changes. It is important that you continuously learn and expand your education. Stay current on any changes made to necessary software, certifications, or even required degrees. This not only shows what you are capable of, but also shows employers that you are doing what it takes for the job. It can also lessen the amount of training you may need which can save your employer time and money.
Tip #2-
Expand your network
Effective networking can change your professional life tremendously. It is always beneficial to make connections with those in your industry. Attending professional events and meetings will broaden your links to those with knowledge in your market. Also, you can share your own advice with others which can lead to you earning information back when needed.
Tip #3-
Brand yourself
Branding is not only for companies. When you are in the workforce, you will want to present yourself, experience, and skills in the best possible light. You will want to remain consistent, professional, and create a brand to stand out among your competitors. Use social media for good and create a story to tell employers who you are, what your strengths are, and where you see yourself in the future. A great social media tool for this is LinkedIn.
Tip #4-
Create a portfolio
Creating an online portfolio of your best work is a great way to show future employers that you value your work. This portfolio will show-off the quality and depth of your work while showing that you take pride in what you do. You can provide a link on social media for potential employers, but also have a more in-depth portfolio available for interviews. Be sure to keep this up-to-date and have a hardcopy as well as a PDF version.
Tip #5-
Update your resume
As you gain new skills, certifications, achievements, etc., update your resume. Remove outdated information and skills from your resume so the rest can be highlighted and in the forefront. Don’t wait until you are searching for a job to update your resume, have it “at the ready” at all times so as soon as an opportunity arises you can provide exactly what you need. Then, be sure to follow up with anyone you have provided your resume to.
Tip #6-
Be as flexible as possible
The job market is constantly changing and evolving, due to this it is important to be open minded and flexible concerning job positions and responsibilities you are willing to explore. Even temporary positions or travel assignments can lead to full-time positions which can lead to growing within the company. Be flexible and show initiative!
Tip #7-
Clean up/join social media
In today’s world of social media employers have and will view what you share online. It is important to view your social media account(s) through an employer’s eyes and clean up what may be viewed as inappropriate. A future employer may love your resume and interview skills, but they may not like how you present yourself on social media. Again, good branding is key!
Tip #8-
Stay Focused
It can be exhausting and stressful locating a new job and employer, however; staying focused and committing to your future can be very rewarding. Set your goals and remain focused, you will get to where you want to be. It may take some time, or you may luck out and it happen quickly…either way, determination and drive will help you get there. Set your focus on what you want and go for it!
These are eight ways to become more attractive to your current or future employer. It does take work and dedication, but if you have committed to the process results are sure to follow. You want employers to want you, and it will need to be targeted to employers that you will want to work for. Not every opportunity is the right fit, but with time and persistence you can find what best works for you. These tips will help you to create a strong presence and impactful first impression, exactly what it takes to become more marketable. So get started and make a positive impact in your field today!
Accounting is a lot of responsibility and can be monotonous. It is definitely not for everyone as accounting requires serious concentration, one small mistake can make for a huge error and possibly cost you your job. However, many individuals have all the important qualities that make for an amazing accountant. So if you wonder if accounting is right for you, read below and determine if you have what it takes to be an accountant.
As any accountant knows, you will want a good return on your money after graduation, so you will want to be sure an accounting degree is right for you before you commit to continuing your education. Dedication and integrity are two main qualities you will need to have so that you will embrace the educational side towards being an accountant and follow the rules of accounting after obtaining your degree. Numbers certainly never lie, so you must always be upfront and honest with your clients. Throughout your accounting career you must continue to learn tax codes and regulations while also abiding by all rules.
If you do not possess impeccable time management skills, accounting may not be the right choice for you. Knowing how to prioritize and having the ability to efficiently handle the workload of an accountant is an absolute must, especially in the first few months of each year (tax season). These first few months of every year can become insanely busy for accountants with A LOT of moving parts. Quality time management is crucial in getting everything completed on time.
Accuracy is a must for accountants. Accountants must always have the correct facts and accurately record them. Every small detail counts in accounting. As mentioned, the smallest mistake could cost you your job or a client. Accountants cannot afford distractions or mistakes, so attention to detail and being organized is vital.
Excellent communication skills will assist you greatly as an accountant. Your potential clients will need to trust you and know their finances are safe in your hands. Effective communication will help forge lasting relationships and give clients the confidence they need to place trust in your abilities. You will need to know how to communicate with clients so they can better understand their finances and taxes, but also know how to communicate in accounting terms when collaborating with other accounting professionals.
Technology, tax codes, regulations, etc. are constantly changing and many individuals do not adjust to changes well. If you want to be an accountant, you must be willing to easily accept change and adjust accordingly. Businesses are always updating software and changing layouts, a good accountant embraces these changes and can appreciate the value it brings. Accountants don’t have time to fall apart when changes are made, they must learn quickly what is needed of them and move forward.
A career in accounting can be very stressful, yet also extremely rewarding. Accountants need to have dedication and integrity, excellent time management skills with attention to detail, great communication skills, and the drive to stay up-to-date while quickly adjusting to change. Accountants will be in demand as long as money exists. So if you feel you have what it takes to be an accountant, you can look forward to a stable career. Just remember, be honest, be open to constantly learning, and know that tax season doesn’t last forever!
Business owners can take their company to the next level by simplifying employee payments, tax filing, and more when they choose the right payroll processing software. Your choice in payroll software should make it easy to manage your company’s payroll, benefits, human resources, etc. in an all-in-one modern platform. We have done the research on the top payroll services and included the top 5 below. Check out our top 5 payroll processing software below to help make the right decision for your business.
#1- ADP- our choice
This software is easy to use and has multiple reports for business insights. ADP has a knowledgeable and responsive support team if you do come across any issues, but users find this software simple to use and configure. ADP has time tracking and attendance for compliance with laws and integrations with 3rd party apps and service providers. When you sign up with ADP you get three months free, but their pricing structure is not publicly listed as their pricing structure is tailored to individual needs. On average you can expect to pay around $10/month/user; however, this price can considerably increase depending on add-ons and your contract structure. ADP is available in the cloud and through mobile apps to provide easy access from anywhere. Additionally, ADP offers robust reporting, automatic flags on possible errors, direct debit, check printing, state unemployment insurance management, debit cards, and much more. It is important to mention that the employee portal is different from the main payroll app and different logins are required for the time management and payroll portions of the app.
#2- OnPay
This software is loved by many small businesses due to its large range of services included in the basic cost. OnPay has a fast and courteous customer support team and the 30 day trial period with no long-term contract commitment makes deciding on a software even easier. Everything you need to do with the monthly payroll seems to be covered with services offered. These services include full service payroll, human resources, benefits, paid time off, and COVID-19 support. OnPay has an accuracy guarantee in regards to automated tax filings, payments, and older records. This software has a one tier pricing package of $36/month plus $4/month/user. Unfortunately, OnPay does not have an auto payroll option or international service available so this should be considered when making a decision for your company’s payroll processing software.
#3- Paychex
This software is an all-in-one easy to use platform and although it is one of the oldest companies of its type, it is modern and efficient. Paychex offers basic features and add-on features for a customized experience. Paychex has tools such as wage garnishment, time and attendance tracking, employee benefits, human resource solutions, and more. Limited pricing information is listed as business owners can tailor their needs; however, entry-level pricing is $59/month plus $4/month/user. This software also has 24/7 customer support, but is unique as when you register for an account you are assigned a personal account representative. Having your own representative allows Paychex to deliver better support, which comes in handy if you experience any user issues along the way. Also, they offer multiple training resources for business owners to take advantage of.
#4- Gusto
This software was designed for small business owners who wish to automate their payroll process. Gusto provides all of the features business owners need such as flexible payroll schedules, direct deposit, new hire reporting, healthcare and retirement plan administration, and more. This payroll processing software also assists with payroll taxes, including 1099s for any contract employees. Gusto offers four plans with the basic plan priced at $19/month plus $6/month/user. However, if your business has more than 20 employees, the fee structure can become expensive as their largest plan is $149/month plus $12/month/user. Furthermore, you will be charged for all active employees whether that employee is paid or not. Regardless, Gusto is easy to use and provides step-by-step instructions for a variety of topics. While they do not offer 24/7 support, Gusto offers telephone, email, and chat support during business hours.
#5- Deluxe
This software is enjoyed by many, mostly for the 100% tax penalty protection and free setup and data transfer from other providers. Deluxe offers features such as a customizable pay grid, payroll reporting, intuitive dashboard, and more. While Deluxe offers a lot of features, it is easy to use and states there are just three simple steps involved to enter payroll. This software also includes customer support via phone, email, or live chat. Plus, support staff have training on business finance topics. Additionally, you can link your Deluxe data to several accounting software solutions. If you don’t see the software on the Deluxe site, you can contact them to see if any tool not listed is available for integration. If not, Deluxe states they can let you know if they’re able to create an integration for you. Deluxe also does not show exact pricing on their website, but does offer a 90-day money back guarantee.
While many business owners struggle with payroll, the right payroll processing software can ease the struggle and free up a lot of time. Navigating the nuances of payroll and tax compliances isn’t easy and doing it wrong or late can cause legal issues and unhappy employees. However, there are plenty of payroll processing software to choose from regardless of your company size and price point. Thanks to advances in integration and cloud technology, payroll software has flourished and provides all the features your business needs.
Accounting is an essential requirement for any business and the hospitality industry is no exception when it comes to this requirement. Accounting for the hospitality industry requires specialized accounting management skills to avoid an entire system of mismanagement and inefficiency. Even the basic principles of accounting can assist you in obtaining the information required to improve every aspect of the hospitality industry. With useful data available, owners are able to make more proactive decisions and improve the profitability of their business while providing excellent accommodations for their guests.
Every successful venture needs solid financial management to ensure growth. In the hospitality industry, guests must be accommodated, staff needs to be paid, total sales must be reported, transactions have to be recorded, there are profits to analyze, etc. All of this is why accounting is crucial to the hospitality industry. It enables you to gain deep insights into the financial status of your business, and without this knowledge, growth cannot occur.
You need an accurate understanding of how much money was spent, how much was received, and what the spendings went to. An accounting expert can assist you in knowing all of the financial ins and outs of your hospitality business, which can alleviate the added burden of financial management. Owning a hospitality business can be tremendous pressure when managing the day-to-day operations; however, an expert accountant can simplify accounting while also saving you precious time and resources. If you want to grow and excel in the hospitality industry, professional accounting is an essential element.
The accuracy of a hospitality business account has a direct impact on the profitability and viability of the entire business. No organization can succeed without flawless accounting standards- the more accurate, the easier it is to maximize revenues and minimize expense.
Accounting in hospitality has great significance amongst owners because it enables them to gain deep insights into their financial happenings. Financial reporting keeps them regularly updated, which ultimately helps business owners make the best decisions and achieve great outcomes.
Every day individuals become inspired to develop a nonprofit organization to help serve their communities. While we applaud your commitment, starting and sustaining a nonprofit aren’t easy tasks and they can take a lot of work. While you should still consult with an expert (ie. attorney, accountant, etc.) to ensure your nonprofit complies with state and local requirements and federal laws, we have a list of 6 steps to follow when beginning your nonprofit journey.
Six Steps to Get You Going
Step #1- Research
We first recommend our key component that we regularly mention in our blog and newsletters- Do your research! You should first start with a lot of research. You will want to research registration requirements for fundraising, determine laws at the state, local, and federal levels, identify the need for your nonprofit, and ensure starting a new nonprofit is the right solution.
There are more than one million charitable nonprofits in the United States, and unfortunately many of them struggle to attract funding. This is why it is crucial to identify and quantify the need for your specific nonprofit. Before starting out, research whether other individuals or groups are already engaged in the same or similar services, this will assist in ensuring your new nonprofit is the right decision. You will also want to clearly understand the costs of starting your organization and follow the laws in place. We recommend becoming familiar with laws and other requirements.
Step #2- Building a solid foundation
You have now determined a need in your area and decided a new nonprofit is for you. Hopefully, you have the perfect name for your organization and are ready to begin building a solid foundation. After thoroughly researching nonprofits and their laws, a solid foundation starts with building on your knowledge. It is helpful during this step to determine who will be involved, what you need to do, when paperwork should be filed, and how you will create and sustain your organization while adhering to your mission statement and values.
It will take more than you to keep your nonprofit alive. Volunteers, board members, etc. will offer support and allow for a better chance of success. You will want to consider community partnerships and skills you may need from volunteers and paid staff. Continue developing your business plan during this step, focusing on your mission and values, organizational structure, marketing and fundraising plans, and a monthly, yearly, or bi-annual budget. We also recommend speaking with an expert concerning reporting on an annual basis and filing for tax exempt status and recognition of that status.
Step #3- Building your identity
Once you have pinpointed your nonprofit name, mission, vision and values you will want to develop strategies that communicate these outwardly. When building your identity is not simply the visual aspects of your organization, you will want volunteers and your paid staff to have a clear understanding of what your nonprofit stands for and why. This ensures a consistent brand identity. Furthermore, refer to your demographic region so your communication skills are tailored to meet the communities needs- this is also important for your brand.
While your nonprofit organization’s visual identity is crucial (name, logo, graphic designs, etc.), your brand identity as a whole assists in uniting all of your nonprofit stakeholders. You want to stand out and bring forth a clear message. You want to be simple, but compelling, relatable, and memorable across the entire organization. Consistency is key to successful branding- you may even consider developing a guide to outline your main elements to include rules, design elements, typography, and what may and may not be allowed when your logo is in use.
Step #4- Legally incorporate
Once you have a solid foundation and strong brand identity, it is time to begin the process of incorporation. Again, you may choose to hire an expert for this step or connect with your local state association of nonprofits for state-specific resources. However, you can do-it-yourself- but we recommend an expert to ensure you follow the proper process for starting your organization.
Although states vary on regulations, you will need to register your nonprofit’s name, file Articles of Incorporation, and pay all applicable filing fees. Once incorporated you can file for Federal Tax-Exempt status. Typically, state law will provide specific guidelines as there are various types of nonprofits, so you want to explore state regulations to get your legal structure right. You will also need to consider how those specifics of your structure will impact your tax status.
Step #5- Secure startup funding
A nonprofit organization with weak funding starting out is unlikely to sustain itself long. Identifying funding sources and deciding on a funding model for your organization can be one of your most challenging tasks. However, the most common way to secure startup funding is applying for grants. Securing initial funding to startup your nonprofit is the best way to begin pursuing your nonprofit’s mission.
Applying for grants can be very time consuming and takes superb grant-writing skills to win a grant proposal, but grants can fuel your nonprofit organization at the start more easily than many other funding sources. Before applying for a grant it is important to think about a few things:
Consider if you truly meet the requirements of the grant
Apply for the grants whose values align with your organization’s
Start small to build up your writing skills
Research!
Step #6- The start of early operations
Your passion and dedication has led you through a time-consuming and tedious process, but you should now be official and can start working on your passion. In this step you will want to focus more on networking, creating a website, and working on your marketing- which should include social media, it’s free! You will also want to begin hiring staff, familiarize yourself with systems to include email, design, donation software, and more. Plus! If you have yet to do so, you can also decide/locate where your physical space will be.
Networking is essential as it helps in connecting your nonprofit with the resources it needs to get started. Networking will help to increase donors, bring in volunteers, and increase visibility for your organization. One place to start- other nonprofits! Connecting with other nonprofits in your area can assist you greatly!
At this point, you should be sure your social media and website outlets are informative, active, and up-to-date. This will assist you tremendously with marketing and you definitely want a strong marketing strategy. Consider how you will communicate with your audiences and develop a strong marketing plan to help avoid constantly dealing with difficulties in fundraising and possibly inconsistent public perception.
Familiarizing yourself with software and tools is also important during this step. Don’t get too involved with multiple systems, as it can become overwhelming, but research a few key needed tools and learn how to utilize them. Some tools you may want to look into are donation software, social media management, task management, design software, and email software. Just remember, don’t overwhelm yourself with multiple platforms, you don’t want to add more stress or spend too heavily on technology you don’t use.
Starting a nonprofit can be a complex endeavor with a lot of work and moving parts; however, with a firm foundation and strategic planning, your goals can become reality. Follow all of the necessary steps, maintain compliance, and get those donations! Make sure you continuously review your business plan and keep your mission at the forefront in all you do. The role of your nonprofit organization is to create social change and lead the way to a better future- you can do this!
Lately, we have all learned to expect the unexpected, especially when 2020 came around. For the year ahead, it is important to consider making a budget with that in mind. You really don’t even need to make a budget for the entire year, you could try structuring your spending and saving plan using a micro-budget. A micro-budget is a microscopic look at your finances. Typically, you decide a time-frame that works for your budget which could be on a daily, weekly, or monthly basis. This budget is similar to being a micromanager, you basically just watch and make plans for each dollar of income.
Creating a budget brings your finances to the front rather than in the back of your mind. Micro-budgeting has great potential to improve your financial situation, regardless if it is in good shape or poor shape. This budgeting approach is an effective tool for your family and even for some small businesses.
In order to get you started with micro-budgeting, we have compiled a few easy-to-follow steps, these are based on a time-frame of one month:
#1- Determine all household income and expenses for the month.
This includes EVERY dollar coming in and should include estimates for expenses such as fuel. It is also beneficial to view your previous month’s checking account transactions, this will help you to visualize if you are spending more than you earned in a month’s time and also help you plan accordingly for the month ahead.
#2- Plug in all numbers.
This step is crucial so you have the ability to check your budget as you proceed through the month. You can plug these numbers into an app, a spreadsheet, or just pen and paper will do. Regardless of which method you choose, be sure to keep it updated.
#3- Ensure every dollar of income has a purposeful expense and you are purposefully spending.
Purposeful spending means every dollar you make and save actively funds your overall life plan while every dollar you don’t spend is considered a victory.
#4- Check your budget often.
Checking your budget often will ensure you are not overspending and straying from your budget. You can check your budget daily or weekly, just be sure to check it and keep it updated. You may have to alter your spending if you stray too far from the plan you set-forth.
#5- Identify your successes and failures.
At the end of each month be sure to identify your successes and failures. Starting out can bring failures; however, you can also find success! Celebrate what you did accomplish and learn from any shortcomings. Then plan out your next month and try again!
Micro-budgeting can be intimidating at first, but maximizing your money requires mindfulness. Being mindful of your finances and altering spending habits will help to change negative financial situations and help create savings for unexpected curve balls that may come your way. If you have the tools and information available, you can micro-budget in minutes. Planning for your future at a higher-level will assist you in identifying your successes and shortcomings leading you to a sustainable budget.
While we did discuss tips and tricks for QuickBooks in our May blog post, there are other highly rated accounting softwares available. QuickBooks is the top-rated accounting software, but there are other names you may not recognize that also provide excellent features. Really the choice on softwares should be what suits your business the best and which you prefer at a price you are comfortable with. In this month’s blog we will bring the top 5 accounting softwares to your attention and summarize them to assist you in making an informed decision.
Business News Daily recommends the following as the best accounting software and invoice generators of 2021:
Best for small businesses- Intuit QuickBooks Online
Best ERP tools- Oracle NetSuite
Best for invoicing- FreshBooks
Best for microbusinesses- Zoho Books
Best for transparent pricing- Zarmoney
While Business News Daily did categorize each of these, their top 5 picks for best accounting software providers include:
QuickBooks Online
Plooto
Oracle NetSuite
FreshBooks
Zoho Books
An accounting software is one of the first business tools you should acquire when starting a business. This software should allow you to create invoices, record incoming and outgoing payments, run reports, and help you identify and follow-up on past due receivables. However, you may also find the need for advanced features like tax integration, payroll management, business insights, free support, and more! Accounting software puts all your financial information in one place, making your accounting needs easier and more efficient.
Top 5 Accounting Softwares
#1- Quickbooks Online
QuickBooks Online is an extremely popular accounting software used by small businesses across the country. QBO has accounting features to meet the needs of businesses of all sizes, including the ability to create invoices, send and accept payments, and manage and track expenses. Accountants praise this software for its affordability, ease of use, and effectiveness. Depending on the plan you choose, QBO can also allow you to batch invoices, engage in deep analytics, and even access an accounting team for professional assistance when needed. Also, if you already have an accountant, this software allows your accountant access for free. QBO’s reputation stands out in the accounting software industry.
#2- Plooto
Plooto gives small businesses a lot of automotive options to save on time and frustration. With Plooto’s payment platform you can manage payments, approvals, reconciliation, and reporting from one central location. Having these features unified gives business owners control with a clear picture of their financials. This software includes smart approval workflows and secure electronic payments which assists in reducing errors while speeding up the accounts payable process. While other softwares offer the same features, Plooto stands out due to the affordability and ability to automate all accounts payable tasks.
#3- Oracle NetSuite
Oracle’s NetSuite offers a variety of features, including enterprise resource planning tools. NetSuite focuses on automation which makes it simple to send and collect invoices. This software is a full-featured accounting and ERP program geared toward companies with more complex needs. Plus, if you have international sales, NetSuite has robust tax management tools that supports all currencies and exchange rates. This software also helps business owners meet accounting standards and report financial results in a timely manner.
#4- FreshBooks
FreshBooks is incredibly easy to use, letting you easily create invoices, accept invoice payments, track expenses, and send automatic reminders. FreshBooks also allows you to track time spent on projects, load pictures of receipts from your mobile device, and has a double-entry accounting feature to help avoid mistakes. This software effectively combines accounting software tools and invoicing tools which makes it valuable. FreshBooks is also affordable, with multiple plans available to suit the needs of different sized businesses.
#5- Zoho Books
Zoho Books is perfect for microbusinesses as it offers all of the basic features needed, plus advanced tools such as time tracking. Zoho Books has an easy to use platform with apps for a large variety of devices, including smartwatches. This software also includes a company’s client portal which makes Zoho stand out from other rival softwares. This client portal allows your customer’s access to view invoices, make comments, and pay online. Plus, Zoho has integrations so you can continue to use the software as your company grows.
When researching accounting software, it is important to find a software that not only offers all the features and tools your company needs but also fits within the budget. As with everything, there are some drawbacks to each of these software, but that doesn’t change the value they can bring to your company. Despite the COVID-19 pandemic, the accounting software market has continued to grow. This growth is expected to continue as businesses of all sizes look for ways to reduce costs and the complexity that can come with bookkeeping and accounting.
You are most likely to think of QuickBooks if someone mentions accounting software for small businesses as QuickBooks is servicing 4.5 million global customers online, per Intuit Investor Day 2019. Forty percent of that number are small businesses, out of which 30% are product-based businesses. Learning and becoming familiar with QuickBooks should definitely be on the list of your priorities if you are searching for simple solutions for your accounting matters; however, it can also become overwhelming…especially for the non-tech-savvy. But, don’t fret, we have a few tips and tricks to assist you in becoming more knowledgeable. You will be a QuickBooks professional (or can at least act like it) in no time!
QuickBooks- A Real Game-Changer
QuickBooks offers many services that can help you save a lot of time. This tool has an element for almost all of your accounting needs and it truly can be simple to understand. Below are just a few services QuickBooks offer:
Tracking your expenses
Controlling cash flow
Business performance
Creating and sending business forms
Multiple ways to supervise your business (mobile, tablet, computer)
These features allow you to keep up with your accounting needs while offering the freedom business owners require. There are customizable dashboards and even the option to take photos of receipts and quittances so you are sure to stay on track while also being professional and timely with payments.
Advantages and Disadvantages
As with anything, there are some drawbacks to go along with the benefits. We suggest you conduct your own research to dig deeper into these advantages and disadvantages, but we will list a few for you that are worth mentioning. The ones listed are for QuickBooks Online:
Disadvantages-
Limitations on file size and data
Limitations on number of users allowed
Outages and instability
Upgrade fees
Lack of a fixed-asset section
There are other drawbacks and limitations, but as suggested, be sure to conduct your own research before making a decision.
Advantages-
Easy to use and learn
Good accounting reports
Affordable
Easily accessible from multiple devices
Easy customer information look-up
Again, there are plenty more benefits to using QuickBooks, but we want to get to the tips and tricks!
Tips & Tricks for the Technologically Challenged
Tip #1- This tip is so simple, yet many skip right by it! However, we suggest utilizing QuickBooks’ Getting Started Tutorials. These tutorials are well-constructed and practical, so take the time (once familiarized with the basics) and utilize this section to help navigate the learning curve.
Tip #2- Triple check yourself! Your business structure, reporting forms, Tax ID number, etc. is critical; therefore, be sure to triple check that all of your information is entered in correctly. This assists you in avoiding any future problems and gets you the best results and recommendations from the software.
Tip #3- Inputting customers and doing so accurately- again, triple check your work. Click on the Customers Tab at the top of your screen and input each customer as a new customer. Be sure to correctly add all customer details and customize their payment methods.
Tip #4- Reconcile, reconcile, reconcile! Constant reconciliation will change your life as you will always have a high-level picture of your business. When you receive a statement or payment remittance, be sure it reconciles with your QuickBooks.
Tip #5- Automatic back up. Backing up your QuickBooks is as integral as operating your company. If you’re using QuickBooks Online, then your data is automatically backed up to the cloud. However, if using the desktop version you will want to schedule an automatic backup that occurs regularly. Otherwise, your information will be lost if it crashes.
Tip #6- Customization for easy navigation. With QuickBooks you can customize your taskbar so you can navigate the software with ease and efficiency. In order to customize your Icon Bar click view/customize icon bar and keep what you frequently use.
Tip #7- Automotive memorized transactions. By using this tool you can pay bills or send monthly invoices that follow the same pattern. We all need life simpler, and making regular transactions automatic definitely helps. To enable this, click on lists/memorized transaction list/memorized transaction/new group.
Tip #8- Turn off spellcheck! Spellcheck on QuickBooks can be a bit strange when dealing with certain company or individual names, so we recommend turning this feature off. Simply click on edit/preferences/speller and uncheck the box.
Tip #9- Locating the history of a transaction. Don’t waste time searching for related invoices, credit memos, and payments, to locate what you need go to reports/transaction history and easily find what you are looking for,
Tip #10- Batch invoice printing. Sometimes you may need to print multiple invoices at a time. In order to do this, create your invoices, click the arrow next to Print, and then click Batch Print. This feature allows for you to choose invoice numbers for printing.
Tip #11- Staring reports. If you go to the reports tab, you can click on the star next to the report name. You can “star” reports that are often used so the report will show up at the top in your favorites section. This saves time from scrolling through multiple reports.
Tip #12- Filtering by dates, vendor, memo, etc. When viewing a report or account register you can filter it by a specific transaction type, customer, account, etc. Just click on customize.
Tip #13- Recommended Browsers:
Google Chrome- all platforms
Firefox- all platforms
Safari- available on Mac. Not fully supported.
Microsoft Edge/ Internet Explorer- not fully supported
Tip #14- Give me more! The ‘more menu’ is available on any saved transaction. This menu allows access to additional information and tools to work with the transaction. Click ‘more’ to view:
Copy- beneficial with duplicating entries.
Void
Delete
Tip #15- Uploading and saving attachments. With QuickBooks Online you can upload and save attachments on any transaction. This creates ease when referencing source documents. To add an attachment open an invoice, click attachment icon, browse for your attachment, and click save.
There are TONS more, but these tips and tricks should help you get started and have you well on your way! Whether you are just starting out or expanding and have more advanced accounting needs, QuickBooks offers an array of solutions to fit your business. Plus, it doesn’t have to be difficult to operate. Once you learn tricks to help you along the way, you’ll be able to see QuickBooks spares you the trouble of confusion and provides easily manageable tools and services so your business can grow.
TK Accounting & Consulting 