Practical Bookkeeping Tips for Entrepreneurs & Accountants

This provides a variety of useful bookkeeping

pointers for business owners and accountants that will assist keep companies in financial health. It also presents two mobile apps that will improve access to accounting information utilizing Sage 50 software application called ConnectBooks for Sage 50-US Edition (formerly Sage Peachtree) and Sage 50-Canadian Edition (formerly Just Accounting).
IntelleApps is a Development Partner of Sage North America.
ConnectBooks for Sage Peachtree

Successful small business owners have actually discovered the value of accounting software. With ConnectBooks they can continuously monitor the financial health of their business.
CHANTILLY, VIRGINIA (PRWEB) February 05, 2013

Business owners keep a great deal of business financial details in their heads. Doing so has some viewed advantages:

No brand-new software to find out,
No risk of a system crash that loses all your data, and
You can tweak your budget as frequently as you need without a computer system.
These benefits fade in contrast to downsides:
No precise details about the financial health of the business.
Inability to trace and document various income and expenses.
Not able to create significant reports.
Bookkeeping Tips for Business Owners
1. Plan for significant cost outlays
Why it’s practical: You’re less most likely to miss business opportunities or have to scramble for a loan when a cash deficiency is looming.
Action: Put occasions like a major computer upgrade on the calendar a year in advance or, preferably, three to five years ahead. Acknowledge the seasonal ups and downs, something numerous business owners are reluctant to do.

You’ll prevent taking money out of the company throughout flush durations only to find yourself short in the slower months when costly jobs (like updating computers or replacing factory components) take place.

2. Track expenditures
Why it’s handy: You otherwise might some miss tax write-offs and might lose out on others.
Action: A charge card that you use solely for the organization can be a fundamental accounting system. Many card declarations classify costs so you can see which expenses connect to which service activities. If you continuously utilize your business credit card for overhead, you’re less most likely to pay cash and lose the receipts, therefore surrendering tax time write-offs. Such small expenditures can accumulate.

As a matter of routine, take down service trips, lunches, coffee dates and other occasions paid by money in your electronic or paper day planner. This routine can go a long way toward corroborating those items for your tax records in the event of an audit.

3. Record deposits correctly
Why it’s useful: You might be less likely to pay taxes on money that isn’t earnings.
Action: Embrace a system for keeping your commercial activities directly, whether it’s a notebook you utilize consistently, an Excel spreadsheet, or accounting software. Company owner usually makes a variety of deposits into their savings account through the year including loans, profits from sales, and cash infusions from personal savings. The problem at the end of the year can be that you or your accountant might incorrectly tape-record some deposits as income, and as a result, pay taxes on more loan than you’ve really made.

4. Set aside cash for taxes
Why it’s useful: The IRS can (and will) levy penalties and interest for not filing quarterly tax returns on time.
Action: Methodically put a portion of loan aside throughout the year for taxes. Note tax deadlines on your calendar– together with prep time if you require it– to ensure you really make payments when they’re due.

Payroll taxes that go unpaid can be specifically troublesome. It’s a too common problem that cash-crunched entrepreneurs make it through a down cycle by dipping into employee withholdings that they ought to have sent out to the Internal Revenue Service.

5. Keep a close eye on your invoices
Why it’s helpful: Late and unpaid bills harm your cash flow.
Action: Designate somebody in your companies to track your billing. Put a process in place for releasing the 2nd invoice, making a suggestion telephone call, and (possibly) levying penalties such as extra fees at specific due dates. You want to have a plan in place for 30, 60, or 90 days late.

Some entrepreneurs think that as soon as they’ve sent out a billing, they have actually looked after invoice. Not so, every late payment is an interest-free loan to the customer that injures your capital.

When you don’t have a system and processes in place, unpleasant surprises will undoubtedly occur, objectives can be quickly missed out on, and necessary documentation forgot. Getting a much better deal with on your money can assist you to make long-term goals, smooth out the seasonal ups and downs of your cash flow, and potentially enhance your revenues. It likewise helps to stay out of trouble with the Internal Revenue Service.

Bookkeeping Tips for Accountants
No matter the size of service, great accounting is essential to growth and success. Correct accounting enables a service to monitor its financial health. Below is a list of five practical pointers designed to

help services prevent expensive

mistakes.

1. Develop a Practical Chart of Accounts
Developing a chart of accounts is among the initial steps in developing a business accounting system. Essentially, the table of reports permits a company to categorize funds that are gotten, kept, invested, or paid. Figuring out how in-depth to make the chart of accounts is often troublesome for businesses. Excessive information will need information entry training for personnel or outsourced accountants. On the other hand, a generic map of reports does not provide adequate data to examine the financial health of the business thoroughly. Ideally, it must be easy to use while communicating relevant information about the company.

2. Reconcile Bank Statements
I know that I dread fixing up bank declarations. Nevertheless, fixing up a bank declaration allows business owners to identify differences between the bank statement and the account holder’s records. Examples of these distinctions include unexpected or erroneous bank fees, duplicate checks being cashed, and inaccurate posting of transactions. Embezzlement is a more significant problem that is prevented by precisely fixing up bank statements. By comparing these 2 records, business validates that funds planned for the bank are reported.

3. Effectively Classify Employees

Appropriately

classifying employees as staff members and non-employees can be difficult. Freelance employees, specialists, or consultants required to submit documentation with the IRS. This documentation depends on the employee’s classification as an employee. Appropriate classification is vital to avoid misfiling paperwork and running the risk of significant implication from the IRS for both the employee and the business. It might likewise lead to paying excessive unemployment insurance charges.

4. Keep Records Daily
Updating records daily will result in precisely well-balanced accounts. These records allow one to see offered funds and confirm that there suffices cash to cover overhead. Tape updates are not time-consuming; in fact, they take just a couple of minutes each day and will save the accountant numerous hours at month’s end. The most efficient method to keep daily records is by utilizing a constant system. This will enable the process to be structured and lower the threat of oversight or error.

5. Preserve an Audit Trail
Keeping a path of business deals is essential to pass an audit. The most reliable way to document transactions is to develop an electronic copy of all company receipts and billings by scanning them into a computer. This detail needs to be regularly backed up to ensure the files are available in the computer crashes and the business is examined.

Improve Your Accounting Experience
As stated above, there are numerous reasons to utilize an accounting software product such as the Sage 50 products offered by Sage The United States and Canada. A quality mobile app will improve that experience dramatically by offering any time access to the accounting data.

Click on this link to go to our site to subscribe or review the advantages and functions of ConnectBooks. This link supplies access to both ConnectBooks for Sage 50-Canadian Edition and Sage 50-US Edition.

About IntelleApps, LLC:
ConnectBooks for Sage 50-Canadian Edition and Sage 50-US Edition are products of IntelleApps, LLC. IntelleApps is a quickly growing business with an exclusive concentrate on developing state-of-art mobile apps for the Apple iOS and Google Android platforms.

IntelleApps lies in Chantilly, VA, U.S.A. and is a Sage Development Partner. Sage Corporation is the Creator and Owner of the Sage 50-Canadian Edition and Sage 50-US Edition accounting software.