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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.

 

 

 

 

 

 

 

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.

 

Intelligent female businesswoman working on laptop while analysis business strategy and sale performance contract on workplace.
One of the most critical aspects of running any business focuses on managing its finances with the utmost care. If you make mistakes on your tax returns or go over your assigned budget, it does not matter how good your product or service is, as you are likely to get stuck in a tricky situation. Hiring a CPA (Certified Public Accountant) for maintaining healthy financial records, applying for loans, and filing for tax returns is one of the best decisions you can make for your business. The certified accountant will not only manage your documents but will also help you make critical decisions about the future of your business.

Who are CPA’s?

An accountant refers to a person who is well versed in the rules and regulations that comply with GAAP (Generally Accepted Accounting Principles). These rules and standards are set by the FASB (Financial Accounting Standards Board) after considerable thought and accreditation from top finance professionals. A CPA refers to professional accountants who have cleared a licensing state examination to work as an accountant. These individuals have the necessary skills and knowledge to combine with the success of your business. Even small businesses who are considering growth should preferably use their services as they can be a valuable asset to any organization.

Why Hire a CPA?

State-Approved License

A Certified Public Accountant has a state-approved license, which makes them an ideal candidate for managing your needs. They are required to stay up to date with the current tax and accounting laws as the examination is a laborious process spanning over several days. There are many standards that a CPA must follow in order to keep their license. The professionalism and skill set makes them perfect for your business as they are highly capable to efficiently handle complex financial matters concerning your business.

Familiarity with Tax Laws

It is necessary for a CPA to be aware of the tax laws concerning different businesses. No matter what type of business you run, a CPA is well equipped to handle any situation because taxation is an important aspect of their examination. They also have to take yearly tax courses to stay up to date with the current changes in tax laws and regulations.

When filing your tax returns, a professional accountant will ensure that the criteria and standards set by the IRS are properly set. The IRS is smart in distinguishing between taxes filed by a simple accountant or a CPA through their tax identification numbers. Therefore, if you want to offer authentication to your filed documents, it is best to consult a professional.

Financial Analysis

CPAs are well equipped and skilled to perform a detailed financial analysis of your organization. With a professional at your service, you should expect a detailed analysis of your financial reports and cash flows. They will provide you with an honest picture of your current financial standing and are capable of offering advice for the future. Managing your cash in the right way is another important demeanor of success and a CPA is able to do that quite well.

Can Represent You in an IRS Audit

One of the biggest advantages of working with a professional CPA is their ability to represent you in case of an IRS audit. Although their authority in representing you can be quite limited, you can still authorize them to execute claims on your behalf as they are very trustworthy. If you want to grow your business, you should consider hiring the services of a CPA in critical financial matters.

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.

 

 

 

 

 

 

 

 

 

 

Man and woman working behind the counter in a clothing store
The need for bookkeeping and accounting will never die. They are the two most basics needs and goals of every business, regardless of size, scale, or industry in which a retail business operates. Since businesses need to keep track of their income and expenses to improve their chances of increasing profitability, they need to implement sound bookkeeping and accounting practices to help their business grow in such a fierce environment. The slightest financial miscalculations or projections can cost significantly and can even kick a business out of the competitive race. For better financial decisions, businesses need to collect the necessary financial information as well as document and review their bookkeeping records accurately.

What Is Bookkeeping?

In simplest terms, bookkeeping is the process of recording business transactions as they occur, which means documenting daily transaction in an accounting system. It helps businesses track their finances, cash flow, income, and expenses and come up with a sound game plan to increase profits. In short, it reveals the financial status of the company that can further be matched against long-term intended goals.

Most small to medium-sized retail businesses prefer to do their own books as it saves money. However, the idea that hiring the expertise of professionals is costly is just a mere perception. There are many individuals and agencies who offer unique bookkeeping and accounting services at competitive rates. Therefore, it is recommended that small to medium-sized retail businesses search for professional, yet affordable, individuals or agencies who can help them achieve their intended financial outcomes.

The Use of Advanced Software in a Retail Setting

There is no denying the fact that advanced accounting software can be as helpful as hiring a professional accountant to do the job. For a small to medium-sized retail business looking to maintain and manage its accounting in-house, accounting software is one of the most convenient and cost-effective ways to record, handle, and manage important business books and financial records. Some accounting software used in retail businesses can be purchased for $300-$800 dollars. Businesses can even buy monthly subscriptions to record transactions, manage their payroll, sales, inventory tracking and have a clear picture of their finances.

Why Is Accurate Record Keeping the First Step towards Success?

As someone rightly said, accurate financial records lead a business to make ideal assumptions and wise decisions. Whether you are using a credible accounting software or not, you must always keep backup of important financial documents like receipts, sales records, bank statements, loan status, past tax data, etc. A tangible file and hard copy of financial records as well as bills and invoices need to be maintained properly to handle situations such as data loss.

According to accounting veterans, it is ideal to plan for the worst scenario to happen to your business. The records of a retail business need to be backed up properly in order to avoid problems that miserably drag you into a severe financial crisis.

Accounting Expertise

Hiring someone with the proper accounting knowledge and skills can help you reduce your tax season troubles and save you a lot of money and time. For retail businesses that consider investing in accounting services as troublesome and expensive, the investment made on hiring an expert will always pay off in the long run, with accurate results. 

It is important to remember that acquiring an accounting service tailored to your business needs can be extremely helpful to your business in many ways. You can leverage more control over your company by concentrating more on core affairs of running your business and allow your accountant to ensure accounting and financial data is handled properly.

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.

separate finances - Complete Controller

When it comes to money management, keeping your business and personal finances separate can save you a lot of aggravation. Keeping a clear line of separation between the two accounts is essential for a business’s long-term growth and success. Entrepreneurs from all across the globe find it extremely hard to keep the accounts separate. Most of them have to finance their start-ups by themselves, which restricts them to sketch a clear line between their personal and business accounts. Moreover, the two accounts’ muddling will create a lot of difficulties, especially at tax time.

MNCs or corporations usually keep their business and personal finances separate as they have a separate legal entity. On the other hand, a sole proprietorship is not a legal entity, which means taxation is done on an individual’s income tax returns. This taxation indicates that all income, losses, and liabilities connect with you, which must be a separate entity. Whether your business is small-scale or large, you must treat it as a viable entity and deal with the accounts separately. Check out America's Best Bookkeepers

Some Things Don’t Mix Well

Certain things don’t mix well–like oil and water. Similarly, business and personal finances should be taken care of individually to reduce financial problems and discrepancies, tax issues, and other finance-related matters. Moreover, it will also simplify things and make it more convenient for you to manage your finances. Gone are the days when businesses used to embrace a traditional approach to carry forward finances and mix them all. Companies adopt a more advanced strategy and keep their business and personal finances separate to avoid tax-related issues and stay on top of their game.

Why Keep Business and Personal Finances Separate?

Long story short, separating both accounts is a necessary exercise if you expect to maintain a smooth flow of business operations and activities. A joint statement can create a lot of difficulties, which means you will have to separate your business transactions from previous transactions. You can file tax returns on personal or business profits. Moreover, streamlining all critical financial transactions requires you to create separate accounts for making payments. To create a professional feel and expect your business to be taken seriously, perhaps for getting finances and loans, you must keep your business and personal finances separate from each other. Check out America's Best Bookkeepers

Why Hire A Professional Accountant?

For successful money management, maximizing tax reductions, and ideal bookkeeping, you must hire a professional accountant/bookkeeper to oversee your finance-related matters. A pro-level accountant has a level of excellence that will propel your business to the next level. An experienced accountant or bookkeeper will guide you through and help you achieve your financial goals and objectives. Whether your business is small or large, hiring the expertise of a notable and well-qualified accountant will help you to keep your financial books clean and clear.

Keep Your Accountant in the Loop

Before making and using funds to invest in your company, you must always keep your accountant in the loop. If you keep your business and personal finances separate, it will be convenient for your accountant to suggest whether your investment or purchases are a good decision. For making quarterly IRS payments, you must inquire about the actual status of taxes from your accountant. Close communication and collaboration will build a strong accountant-client relationship, which will help your business resolve tax and financial discrepancies and excel on a massive scale. Check out America's Best Bookkeepers

Upgrade Your Accounting Software

For businesses that use accounting software to manage their money-related tasks, it is ideal for upgrading the software for the sound management of internal and external finances. By keeping business and personal finances separate and integrating new accounting software with superior options, companies can not only expect to maintain their books but also maximize tax reductions and avoid many accounting errors.

Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service 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, critical financial documents, and back-office tools in an efficient and secure environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity. Check out America's Best Bookkeepers