411 Blog

Accounting Made Simple for your Small Business

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In our recent interview with Sam Finan of SRS Print Management Inc., Finan explained that learning about accounting was one of his biggest struggles as an entrepreneur. We don’t blame him because accounting can be extremely difficult to figure out, and like he said, it’s the kind of stuff you don’t necessarily think about when you’re first starting a business.

The good news is, there is an ever-growing suite of accounting tools to help you stay organized and take the stress out of managing invoices, bills, and receipts, so that you can get back to your business.

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While all small businesses should have an accountant to help file their taxes, bookkeeping is just as important. Bookkeeping is the day-to-day process of recording your business’s transactions, whereas accounting looks at the data from the bookkeeping and builds financial statements. Small businesses need someone to track expenses, otherwise your statements will be unorganized and will become a nightmare during tax season.

Hiring a third party bookkeeper is expensive. Desktop software is only accessible from one device and offers single user access. Instead of just having a folder with all of your crumpled up receipts, we have a bookkeeping solution for busy entrepreneurs.

Cloud accounting software, such as FreshBooks, is a helpful tool for do-it-yourself bookkeeping. It will help you stay organized and avoid the scramble when it comes to tax time. Your accountant won’t have to spend so much time trying to understand all of your expenses.

Benefits:

  • Secure Data. The software is available on a subscription basis so that it can securely host all necessary data online.
  • Relevant Information. If you update your data as it comes in, all the information will be relevant and you’ll be provided with real time insights.
  • Easy Access. All accounting information stored in the cloud can be accessed from anywhere at any time by multiple users.
  • Find Issues. Creating healthy relationships with vendors and distributors is important, but so is maintaining them. If anyone questions why a bill hasn’t been paid or if there was a discrepancy in an invoice, you can easily search through your data.
  • Stay Organized.  Cloud accounting takes the stress out of staying organized with several spreadsheets and documents scattered in your files. All your information is in one place.

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While running your business, accounting may be the last thing on your mind. Even though you already have an accountant it’s important to keep track of all your receipts and invoices in a secure place so that it can be used for easy reference. Becoming your own bookkeeper also allows for you to save money for other expenses such as marketing and advertising. New technologies such as cloud-based accounting software may just be the right answer for you.

For more tips on small business best practices, subscribe to 411’s blog

Anastasia graduated with a BA Honors Communications Degree and is currently pursuing her passion for writing and helping small businesses succeed.