Accounting For Success with Cassie Saquing Small Business Matters

From the cash you have on hand to the debts you owe, understanding the state of your business’s finances means you can make better decisions and plan for the future. Whether you take on your small-business bookkeeping yourself or end up outsourcing to an expert, understanding the basics will help you better manage your finances. You’ll save time chasing receipts, protect yourself from costly errors, and gain valuable insights into your business’s potential. Proper record-keeping for small businesses makes the process easier and keeps you compliant with the law. You never want to waste time chasing down last month’s missing invoice, and you certainly don’t want to find yourself in trouble with legal requirements.

There may be additional steps required if you plan to hire employees for your business. For instance, California requires workers’ compensation for all employers, regardless of the number of employees. In Alabama, on the other hand, businesses are not required to purchase workers’ compensation insurance if they have fewer than five employees. PayScale, a site that tracks salaries and rates, puts the average hourly rate for a bookkeeper around $17 per hour ($10 on the low end and $24 on the high end).

Chart of Accounts

Accountants typically have at least a bachelor’s degree in accounting, and many go on to become certified public accountants (CPAs) or certified management accountants (CMAs). Bookkeepers might also have degrees in accounting, but most have either technical certifications or on-the-job experience. Technological advances can help to streamline your small business bookkeeping and accounting practices. Integrating the most recent communication systems into your business allows you to communicate better with your employees and clients. To save on costs and add efficiency to your business, consider video conferencing, a cloud phone system, and having remote employees. Income is recorded as it’s received; otherwise, it’s not considered revenue.

Just make sure you have a plan to pay off the balance before the introductory offer ends and a variable APR sets in. Accountants, on the other hand, use the information provided by bookkeepers to summarize a business’s financial position and render financial advice to the business owner. Many accountants also prepare tax returns, independent audits and certified financial statements for lenders, potential buyers and investors. Bookkeeping is broadly defined as the recording of financial transactions for a business.

Accounting and Bookkeeping

If the e-commerce software already has certain features, such as inventory management, then it may not be as critical for your accounting software to have that feature as well. E-commerce business owners need both general accounting reports and e-commerce-specific reports to gain a full picture of the financial small business bookkeeping health of their business. These reports should be easy to customize when it comes to date ranges and data inputs so you can be sure you’re looking at the information you need. The best e-commerce accounting software makes it easy to generate invoices and receipts for your customers’ purchases.

Other bookkeepers provide “full-charge” services and can even serve as a financial controller for your company. As a sole proprietor, freelancer, or small business owner, you can choose between using a traditional hand-written ledger, spreadsheet software, or accounting software. Traditionally, you would need to wait to receive your monthly bank statement and reconcile the transactions on the statement with those posted in your ledger or accounting software.

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