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Accounting basics for the entrepreneur – brought to you by FreshBooks accounting software solutions

April 26th, 2017 12:36 am

At FreshBooks, part our aim is to help small business owners and entrepreneurs to manage their finances easily and accurately with the aid of our expertly-designed accounting software. But more than that, we want to help you understand exactly how your finances operate, in order for you to control them as effectively as possible.

Sure, our accounting programs will do all the hard work for you, but we also know that you want to take charge of all aspects of your business, regardless of how effective your accounting software may be.

Below, we’ve provided some tips for business owners and entrepreneurs who are eager to manage their own finances. By following the advice below while utilising FreshBooks’ accounting software, you’ll acquire a clearer understanding of your company’s finances without wasting valuable time.

Explore the tips below, and browse FreshBooks’ range of easy-to-use accounting software programmes to gain control of your business finances today.
Accounting tips for entrepreneurs

The good news for small business owners is that there is no set, legal way to do your books – they must simply reflect the business’s earnings and expenditure as accurately as possible. Most importantly, the way you run your finances must make sense to you. That said, the tips below will help you to manage your cash flow in a logical, effective manner – whatever type of business you’re running.

Create a ledger account

Begin your bookkeeping by creating a general ledger account – one of your company’s most basic, but important, financial statements.

A general ledger is one of the easiest accounts to create, and the one that most succinctly summarises the business’s income and expenses. Drawing up your ledger is fairly simple to do, particularly if you use accounting software. The ledger provides a record of your payments and receipts, and should be updated on a daily, weekly or monthly basis.

Keep your finances separate

A big mistake that many new business owners and entrepreneurs make is mixing their personal and business cash. Even if you’re the sole owner of a company, it’s crucial to keep your finances separate by maintaining different accounts for personal and business money. This is also vital for tax purposes, and will help you to keep track of your expenses and budget easily and accurately.

Speak to an accountant

Even if you intend to complete your accounts yourself, it’s worthwhile to speak to a qualified accountant, and to ask them to assist you in setting up your bookkeeping system. A professional will help you to understand accounting practices, making it easier for you to use software such as FreshBooks’ accounting packages. Moreover, he or she will show you how to do your tax reporting correctly, and will assist you when you need to prepare your income tax statements.

Maintain regular, meticulous records

Never allow yourself to fall behind on your bookkeeping. It is absolutely essential to ensure that your finances are always up to date, so if necessary, set aside a specific time each day or week to attend to your books. Keeping accurate, up-to-date records will help you to recognise trends, potential weaknesses and growth opportunities. It will also ensure that you’re never without written proof in the event of monetary disputes.

Purchase reliable, easy-to-use accounting software

Making use of an advanced accounting program such as FreshBooks’ accounting software takes the guesswork out of managing your finances – and also removes the incidence of human error.

Using this type of software saves time, increases accuracy and provides a paperless, highly effective means of maintaining your financial records. Each of FreshBooks’ accounting packages includes a demo to help you through the installation and use of the programme. Moreover, we offer telephonic and email support to all users of FreshBooks’ software, valid for 12 months from the day you register your software with us.

View FreshBooks’ 2008 range of accounting software now, or speak to our consultants today to discover which package would be ideal for your business’s bookkeeping requirements.

Small Business Accounting Software
Web: https://www.freshbooks.com/

The Importance of Bookkeeping for Small Businesses

January 8th, 2017 8:53 pm

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Running a successful business is like taking care of a well-oiled machine.  Every little cog, crank, pulley, belt, bolt, and screw needs to be maintained and monitored.  Every little detail of your business should be cataloged and updated, there should be no exceptions for the financial books, either.  If you file for taxes and think that every year it has to be a massive slog that always ends up setting you back, it absolutely shouldn’t be that way.  Here’s why you previously thought you couldn’t afford to hire a professional bookkeeper, but in all actuality, you can’t afford not to hire one.

Yearly Tax Savings/Earnings

This is usually the only time businesses hire someone to do their books: right at the time their taxes are due.  For small businesses, one might feel compelled to save a buck by doing their own taxes, but that’s assuming you know just as much as professional bookkeeper or tax preparer.  You don’t, and you might end up losing out on cost-cutting exemptions that flip the script from where you started out owing the CRA or REVENUE QUÉBEC to the CRA or REVENUE QUÉBEC owing you.

Never Fear an Audit

A random CRA or REVENUE QUÉBEC audit that comes without warning could cause a small business a whole load of stress.  You know you haven’t done anything illegal or violated any rules, but that doesn’t mean the process of digging up specific records isn’t stressful.  If the CRA or REVENUE QUÉBEC deems your bookkeeping unsatisfactory, you could be placed under even more unwarranted stress.  Hiring an affordable accounting firm to organize your business lets you worry about running your business, not jumping through hoops and juggling duties.

Generating Analytics

A bookkeeper isn’t just a glorified office clerk that can organize your filing cabinet and migrate data into MS Excel, Quickbooks, simply accounting/Sage 50, they can become an important tool in the ongoing success of your business.  Without know precise data points for all of the sales, fees, taxes, overhead costs, and net profits, how will you be able to decide when you should invest in a timely upgrade?

Don’t let your business become another statistic like those restaurants you see on Kitchen Nightmares or the failed investment pitches as seen on Shark Tank.  Without intimate knowledge about your business, you will never be able to know whether or not your profitability is really sustainable or if you can expand it.  It’s hard enough to see past one’s own optimism for their own business; it’s nearly impossible to make the best decisions without a bookkeeper who can give you the raw, unadulterated facts about the performance of your business.

Limit Loss/Vulnerabilities

Without a professional bookkeeper there to make sure your records are complete and accurate, you are leaving yourself open for professional conmen or small-time criminals to take a swipe at you and getting away before you ever notice anything amiss.  It doesn’t have to come in the form of physical theft or the sale of bad products, it can be in the form of a deceptive business service that promises you long-term success, while in reality only providing a virtual placebo effect.  You won’t know that you bought into some fancy marketing strategy that is designed to sell overpriced and ineffective products or services until you have gone back and looked at your spreadsheets, but then it’s usually too late.  A bookkeeper would be able to tell you right off the bat that it’s a raw deal and you should save your money.

Website: http://514accounting.com/