Tag : Accounting

Accounting for Small Businesses, business accounting.#Business #accounting


The Importance of Accounting for Small Businesses

Bookkeeping is necessary in any business. As a small business owner, it’s important to recognize that the best practices used by Fortune 500 companies also apply to you. Following basic accounting principles is essential for success in any size business; savvy record-keeping and financial analysis is key to not only monitoring your expenses, but to discovering new avenues of growth. In addition, it ensures you stay responsible for tax obligations to the government and to your employees.

Accounting entails more than just managing credits and debits, and it comes into play more often in everyday business decisions than you may realize. A few examples include:

  • Closely monitoring your accounts receivable to illustrate trends or behaviors in your customer base. It can also cut down on the costs you incur by pursuing late payers.
  • Establishing a detailed budget to help discover inefficiencies within your operations.
  • Sudden changes in vendor costs or sales revenues can alert you to important industry changes.
  • Understanding your financial position in order to spot problem areas that could interfere with loans earmarked for expansion.

As you consider your accounting strategy, review your company’s financial goals. Whether you are a solo entrepreneur or you employ a staff, your survival hinges on clearly stated financial objectives. You may be in business to reap as much profit as you can, or you may be interested in sharing a product or service that you believe in. Either way, experts agree that one of the most common reasons small business fail is because cash flow runs dry. To prevent this disaster, your business should implement policies for efficient record-keeping and a sound financial strategy.

Taxes are unavoidable. Depending where you operate and the nature of your business, the IRS has very specific requirements about the documentation you’re required to file. Submitting improper or inaccurate documentation can get you into trouble, and it can be extremely costly in terms of fees and penalties. Preparing the required tax documentation has its benefits though, and it can give you vital information about the health of your business. Monthly or quarterly financial statements, cash flow statements, and asset and income statements can provide a clearer picture of your business than your bank balance. Understanding IRS requirements and how you can make them work for you can give you a deeper understanding of your company’s financial health.

What information should I be tracking?

If you haven’t had formal training in accounting or are more interested in other aspects of your business, keeping meticulous records of financial data can be a chore. Furthermore, understanding precisely what information you should be tracking can be overwhelming and confusing. Most small businesses should track the following categories of data:

How should I track these metrics?

Though it’s quite common for small business owners to have a spouse or family friend “do the books,” effectively managing your small business’s finances goes beyond bookkeeping. Properly strategizing for your company’s future, as well as meeting your legal requirements, is best achieved with professional accounting methods. This is particularly true if you’re too busy or too uninterested in the nitty-gritty details to analyze the numbers. At this stage, successful small businesses consider either outsourcing their accounting needs or investing in accounting software. Each option has its pros and cons.

For many startup companies, funds are tight and it may be tempting to pursue the cheapest method. Because your legal requirements are only due once per year, you may choose to ignore it all until tax time every spring. Remember, if you choose this option, you’re essentially opting out of receiving crucial data that can encourage success. The short-term solution may not be the best one, and it pays to do your due diligence when making this critical decision.

Accounting Software

Tech-savvy business owners or those familiar with accounting principles may be drawn to accounting software. From a time management standpoint, digital bookkeeping is a vast improvement over manual calculations. These applications automatically crunch numbers, perform data entry, track performance metrics and produce business reports. Once your data is entered into an application correctly, the accuracy of the software’s calculations is virtually guaranteed; this can be a comfort in the event of IRS scrutiny.

More advanced versions integrate with other office management programs, display data trends, pay accounts receivables, remit invoices or ensure that you’re meeting tax requirements. Extensive data storage within an application like this also increases your company’s efficiency, allowing access to details like payment history with a few keystrokes.



Small business accounting, small business accounting.#Small #business #accounting


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Best Accounting Software for Small Business 2017: QuickBooks vs Xero vs Wave,

Business accounting software

Business accounting software

Best Accounting Software for Small Business 2017: QuickBooks vs Xero vs Wave

In this guide, we compare the top providers of small business accounting software: QuickBooks Online, Xero, and Wave. QuickBooks and Xero were selected because they both offer features that go beyond the basics, such as inventory management and budgeting. Wave stood out because it is a free option packed with great features. Read on for a detailed comparison.

Best Accounting Software for Small Business Owners: QuickBooks Online

We recommend QuickBooks Online because of the number of features that you get for the price, how easy it is to use, and the availability of free live support via phone or chat so that you can get help when you need it. It’s also the system that we use and love at Fit Small Business. Click here to receive up to 50% off Quickbooks Online.

Best Small Business Bookkeeping Software Summary Table

QuickBooks Online: Best Accounting Software for Small Business Owners

There are four primary reasons why we chose QuickBooks Online as the best small business accounting software:

1. QuickBooks ecosystem

Accounting software is different from other types of software because you’ll be giving other users, such as your accountant or bookkeeper, access to your information. It’s important for these people to be familiar with the system you’re using, and that’s almost guaranteed with QuickBooks. It’s the most commonly used accounting system with over 1 million customers and is regarded as the ‘go to’ accounting software. This is the primary reason we recommend QuickBooks, despite the potentially higher price tag.

There are over 20,000 accountants and bookkeepers who are certified in QuickBooks and a large network of ProAdvisors (myself included) all across the country. Be sure to check out how to find a QuickBooks Proadvisor for tips on how to locate and hire a QuickBooks Pro.

2. It’s easy to use

While all 3 systems are easy to use, QuickBooks is especially ideal for business owners who don’t have an accounting background. The QuickBooks user interface consists of completing forms to bill your customers and to pay bills or write checks. Once you understand how to complete the forms, QuickBooks does the accounting behind the scenes for you. To expand your bookkeeping knowledge, check out our Small Business Bookkeeping Accounting Guide.

3. QuickBooks will grow and expand with your business

It has advanced features like inventory tracking and the ability to create budgets. In addition, you can easily add on payroll once you hire your first employee, and sign up for an Intuit Merchant Services account when you are ready to accept credit card payments from your customers. These services come with an additional cost, but the good news is that you can add them with just a click of a button and there is no need to upgrade to a new version.

4. Create financial statements in minutes

QuickBooks comes with 40 + reports that you can run in minutes. This includes a Profit and Loss Statement, Balance Sheet Report and Statement of Cash Flows, which provide you with a complete picture of how well your business is doing. Xero offers similar reporting capabilities. While you can run a Profit and Loss Statement and a Balance Sheet Report in Wave, you cannot prepare a Statement of Cash Flows.

If there is a downside to QuickBooks, it’s that the quality of the support can be inconsistent. As a QuickBooks ProAdvisor, I have had a lot of experience with calling or using chat support while at a client’s office. My experience using the chat support channel has been much more successful than when I call the support line.

Xero: Best Accounting Software for Free Payroll Processing

Xero is not as well known as QuickBooks and is sort of the “new kid on the block,” but it is quickly making a name for itself with over 1 million small business subscribers. Xero has over 16,000 certified advisors (myself included) who can help you get up and running. You can find a Xero certified advisor by entering your city, state and zip on the website.

In my opinion, the look and feel of the Xero interface is very similar to QuickBooks Online, so it is perfect for existing QuickBooks users that are thinking about making a change. Similar to QuickBooks, we have created a free Xero Course with video tutorials that show you how to set up your business.

Xero includes payroll processing for up to 5 employees in their product offerings (up to 10 in premium edition). The benefit of course is that when your business grows to where you need to hire employees, there is no need to upgrade or any additional costs to pay. With QuickBooks, you need to pay an extra cost if you want payroll functionality.

Unlike QuickBooks, Xero allows an unlimited number of users to access the program at no additional charge. This is great if you have several people like your tax professional, CPA, and employees that need access to your data. Similar to QuickBooks, you can set each person up with their own user id and password and give them access to just the areas of Xero that they need.

The downside to Xero is their customer support. Free email support is included in all plans but if you would like to talk to someone, then you have to include a request for a telephone call in your email. The response time for emails is generally 3-4 hours.

Lastly, although Xero is quickly catching up to QuickBooks, they still don’t have the same number of local experts/certified advisors. So if you’re thinking of choosing Xero, make sure your accountant or bookkeeper is onboard.

Wave: Best Free Accounting Software

Heard of Wave before? Neither had I before I started doing some research for this guide. With a price tag of FREE, I must say that I didn’t expect much. But, I was pleasantly surprised at the long list of features this accounting software has to offer for absolutely free. There are limitations on what you can do with Wave, but for a free online accounting software, the functionality is quite extensive.

Wave was designed for contractors, freelancers, and businesses with 9 or fewer employees. They have over 2500 Pros who support small businesses that use Wave. This is significantly less than the 20,000 QuickBooks Pros and the 16,000 Xero Pros out there so it might be more challenging to find a local expert. However, the program is pretty easy to use and they have some great training resources that we will explore later on in this guide.

Wave is able to handle the day to day business basics like invoicing customers, importing credit card and debit card transactions, and running financial statements like profit and loss and balance sheet reports. However, you cannot run a statement of cash flows in Wave. Also, it is limited when it comes to paying bills. You can enter your bills and manage their due dates in Wave, but you cannot actually write a check in Wave. Therefore, you will have to manually write checks to pay your bills and then go into Wave and manually mark your bills as paid. Since this process is manual, your accounts payable account will not be up-to-date until you have manually marked the bills as paid.

There’s also another catch: you will see display ads on the right side of the screen. But to be honest, after working in the program for an hour, I forgot they were there.

QuickBooks vs. Xero vs. Wave: In-Depth Review

Pricing

The three companies we compare in this guide range the gamut in terms of price. Wave is free, and Xero and QuickBooks are $30 and $50/month respectively. Here’s a summary of pricing and what you get with our recommended edition and the premium edition of each product.



What Is Accounting, About Accounting, business accounting.#Business #accounting


How to Define Accounting for Business

A strong company can attribute some of its success to its accounting. Without accounting, it would be hard to keep track of your business s finances and profitability, and you might not know exactly how much money is coming in or going out.

Unless you are well-versed in finance yourself, your business will likely need to enlist the help of a professional accountant. Here s a breakdown of who accountants are and what they do for your company.

What do accountants do?

The American Accounting Association defines accounting as the process of identifying, measuring and communicating economic information to permit informed judgments and decisions by users of the information. Logging a business s account payable, accounts receivable and other financial transactions, typically using accounting software, is often how it s done.

Accountant use the work done by bookkeepers to produce and analyze financial reports, said Stan Snyder, CPA. Although accounting follows the same principles and rules as bookkeeping, an accountant can design a system that will capture all of the details necessary to satisfy the needs of the business managerial, financial reporting, projection, analysis and tax reporting.

In the United States, most accountants abide by the Generally Accepted Accounting Principles to present a company s financial information to those outside of the company in a format that everyone can understand. There are different sets of accounting standards for companies that operate overseas, as well as for local and state government entities.

Harold Averkamp, CPA and owner of Accounting Coach, said accountants also provide a company s internal management team with the information it needs to keep the business financially healthy. Some of the information will originate from the recorded transactions, while some will consist of estimates and projections based on various assumptions, he said.

Accounting ratios

Accounting ratios help uncover conditions and trends that are difficult to find by inspecting individual components that make up the ratio, and formulas like this help accountants to come up with a company s status and projections. Accounting ratios are divided into five main categories:

  • Liquidity ratios: measure liquid assets of the company versus its liabilities
  • Profitability ratios: measure organization s ability to turn a profit after paying expenses
  • Leverage ratios: measure total debt versus total assets and gauge equity
  • Turnover ratios: measure efficiency by comparing cost of goods sold over a period of time against amount of inventory that was on hand during that same time
  • Market-value ratios: measure company s economic status compared with others in industry

Editor s Note: Looking for information on accounting software for your business? Use the questionnaire below, and our vendor partners will contact you to provide you with the information and quotes you need:

Accounting careers

Many accountants within the industry choose to become CPAs, achieved by passing an exam and getting work experience. The Pennsylvania Institute of Certified Public Accountants explains that CPAs audit financial statements of public and private companies; serve as consultants in many areas, including tax, accounting and financial planning; and are well-respected strategic business advisors and decision-makers. The role of a CPA ranges from accountants to controllers and from chief financial officers of Fortune 500 companies to advisors for small neighborhood businesses.

More information on accounting careers can be found on The Accounting Path.

Basic accounting tasks

  • Record transactions. Depending on volume, an accountant will record each transaction (billing customers, receiving cash from customers, paying vendors, etc.) daily or weekly.
  • Document and file receipts. Copy all invoices sent, all cash receipts (cash, check and credit card deposits) and all cash payments (cash, check, credit card statements, etc.), and start a filing system that makes sense, will be easy to keep track of, and easy to maintain.
  • Pay vendors, sign checks. Track your accounts payable and have funds scheduled to pay your suppliers on time to avoid late fees.
  • Balance your business checkbook. This task is done monthly to insure that your cash business transaction entries are accurate and that you are working with the correct cash position.
  • Process or review payroll and approve tax payments. You need to meet payroll tax requirements based on federal, state and local laws at different times, so be sure to withhold, report and deposit the applicable income tax, social security, Medicare and disability taxes to the appropriate agencies on the required dates.

Additional reporting by Marci Martin. Some source interviews were conducted for a previous version of this article.

Jennifer Post graduated from Rowan University in 2012 with a Bachelor s Degree in Journalism. Having worked in the food industry, print and online journalism, and marketing, she is now a freelance contributor for Business News Daily. When she s not working, you will find her exploring her current town of Cape May, NJ or binge watching Pretty Little Liars for the 700th time.



Accounting for Small Businesses, small business accounting.#Small #business #accounting


The Importance of Accounting for Small Businesses

Bookkeeping is necessary in any business. As a small business owner, it’s important to recognize that the best practices used by Fortune 500 companies also apply to you. Following basic accounting principles is essential for success in any size business; savvy record-keeping and financial analysis is key to not only monitoring your expenses, but to discovering new avenues of growth. In addition, it ensures you stay responsible for tax obligations to the government and to your employees.

Accounting entails more than just managing credits and debits, and it comes into play more often in everyday business decisions than you may realize. A few examples include:

  • Closely monitoring your accounts receivable to illustrate trends or behaviors in your customer base. It can also cut down on the costs you incur by pursuing late payers.
  • Establishing a detailed budget to help discover inefficiencies within your operations.
  • Sudden changes in vendor costs or sales revenues can alert you to important industry changes.
  • Understanding your financial position in order to spot problem areas that could interfere with loans earmarked for expansion.

As you consider your accounting strategy, review your company’s financial goals. Whether you are a solo entrepreneur or you employ a staff, your survival hinges on clearly stated financial objectives. You may be in business to reap as much profit as you can, or you may be interested in sharing a product or service that you believe in. Either way, experts agree that one of the most common reasons small business fail is because cash flow runs dry. To prevent this disaster, your business should implement policies for efficient record-keeping and a sound financial strategy.

Taxes are unavoidable. Depending where you operate and the nature of your business, the IRS has very specific requirements about the documentation you’re required to file. Submitting improper or inaccurate documentation can get you into trouble, and it can be extremely costly in terms of fees and penalties. Preparing the required tax documentation has its benefits though, and it can give you vital information about the health of your business. Monthly or quarterly financial statements, cash flow statements, and asset and income statements can provide a clearer picture of your business than your bank balance. Understanding IRS requirements and how you can make them work for you can give you a deeper understanding of your company’s financial health.

What information should I be tracking?

If you haven’t had formal training in accounting or are more interested in other aspects of your business, keeping meticulous records of financial data can be a chore. Furthermore, understanding precisely what information you should be tracking can be overwhelming and confusing. Most small businesses should track the following categories of data:

How should I track these metrics?

Though it’s quite common for small business owners to have a spouse or family friend “do the books,” effectively managing your small business’s finances goes beyond bookkeeping. Properly strategizing for your company’s future, as well as meeting your legal requirements, is best achieved with professional accounting methods. This is particularly true if you’re too busy or too uninterested in the nitty-gritty details to analyze the numbers. At this stage, successful small businesses consider either outsourcing their accounting needs or investing in accounting software. Each option has its pros and cons.

For many startup companies, funds are tight and it may be tempting to pursue the cheapest method. Because your legal requirements are only due once per year, you may choose to ignore it all until tax time every spring. Remember, if you choose this option, you’re essentially opting out of receiving crucial data that can encourage success. The short-term solution may not be the best one, and it pays to do your due diligence when making this critical decision.

Accounting Software

Tech-savvy business owners or those familiar with accounting principles may be drawn to accounting software. From a time management standpoint, digital bookkeeping is a vast improvement over manual calculations. These applications automatically crunch numbers, perform data entry, track performance metrics and produce business reports. Once your data is entered into an application correctly, the accuracy of the software’s calculations is virtually guaranteed; this can be a comfort in the event of IRS scrutiny.

More advanced versions integrate with other office management programs, display data trends, pay accounts receivables, remit invoices or ensure that you’re meeting tax requirements. Extensive data storage within an application like this also increases your company’s efficiency, allowing access to details like payment history with a few keystrokes.



Best Small Business Accounting Software, small business accounting.#Small #business #accounting


Best Small Business Accounting Software

Small business accounting

The benefits of using accounting software for business are well known. When it comes to selecting the right product, though, the choices can be daunting, especially since switching from one accounting software package to another is not a trivial exercise in most cases. Examining your current and potential future needs can help you make the right decision.

If you are just starting a business as a sole proprietor/contractor or a very small business owner without employees, you can probably get by with a basic online invoicing/billing package like Sage One or FreshBooks that can handle invoicing, expense tracking, and produce basic reports to keep tabs on your business and satisfy your accountant and the taxman.

But if your business has employees, is incorporated or is likely to expand to such in future you will need a more robust (and expensive) accounting system such as QuickBooks or Sage 50 that is designed to perform double entry accounting, the basics of which includes:

  • Accounts receivable: moneys received and owing from customers
  • Accounts payable: moneys owing to vendors, suppliers, etc.
  • General ledger: the summary journal of financial transactions

Also typically included in the more expensive packages are features such as payroll, stock/inventory management, project management, financial forecasting, multi-user access, and a wider variety of reports and financial statements.

If your present needs are basic but you are contemplating future business growth make sure whatever accounting package you choose has a path to expand to your future requirements. In many cases, if the core product is missing a feature, you can fulfill your needs with third party add-ons to your existing software. There are hundreds of these available for most of the packages reviewed in this article, including payroll, customer relationship managment (CRM), analytics, and more (see QuickBooks add-ons).

This article contains the most popular small business accounting software packages for Canadian small businesses, ranging from basic to advanced in features (and cost). Some are online-based (cloud) only, some are available in desktop or online versions, and some are hybrids of both.



Приложения в Google Play – Small Business Accounting, small business accounting.#Small #business

Описание

It keeps track of all your customer information and records all the money-in transactions. All the data is stored on the device and is always available.

This is a FREE app with no limits on the usage.

• Store all the customer information in 1 place.

• Get complete information about a customer when they call.

• Import contact details from the Phone’s contact list.

• Create unlimited Estimates , Invoices and Sales Receipt on the go.

• Receive payment for invoices.

• Handle VAT and Service Taxes as per Indian rules.

• Easily track all customer transactions at one place.

• Send Email or SMS to customers directly from the App.

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Он отслеживает всю информацию клиента и записывает все денежные операции в. Все данные хранятся на устройстве и всегда доступна.

Это бесплатное приложение без каких-либо ограничений на использование.

• Храните всю информацию о клиентах в 1 месте.

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• Ручка НДС и налога на услуги в соответствии с индийскими правил.

• Легко отслеживать все операции клиентов в одном месте.

• Отправить на e-mail или SMS для клиентов непосредственно из приложения.

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Best Accounting Software for Small Business 2017: QuickBooks vs Xero vs Wave,

Business accounting software

Business accounting software

Best Accounting Software for Small Business 2017: QuickBooks vs Xero vs Wave

In this guide, we compare the top providers of small business accounting software: QuickBooks Online, Xero, and Wave. QuickBooks and Xero were selected because they both offer features that go beyond the basics, such as inventory management and budgeting. Wave stood out because it is a free option packed with great features. Read on for a detailed comparison.

Best Accounting Software for Small Business Owners: QuickBooks Online

We recommend QuickBooks Online because of the number of features that you get for the price, how easy it is to use, and the availability of free live support via phone or chat so that you can get help when you need it. It’s also the system that we use and love at Fit Small Business. Click here to receive up to 50% off Quickbooks Online.

Best Small Business Bookkeeping Software Summary Table

QuickBooks Online: Best Accounting Software for Small Business Owners

There are four primary reasons why we chose QuickBooks Online as the best small business accounting software:

1. QuickBooks ecosystem

Accounting software is different from other types of software because you’ll be giving other users, such as your accountant or bookkeeper, access to your information. It’s important for these people to be familiar with the system you’re using, and that’s almost guaranteed with QuickBooks. It’s the most commonly used accounting system with over 1 million customers and is regarded as the ‘go to’ accounting software. This is the primary reason we recommend QuickBooks, despite the potentially higher price tag.

There are over 20,000 accountants and bookkeepers who are certified in QuickBooks and a large network of ProAdvisors (myself included) all across the country. Be sure to check out how to find a QuickBooks Proadvisor for tips on how to locate and hire a QuickBooks Pro.

2. It’s easy to use

While all 3 systems are easy to use, QuickBooks is especially ideal for business owners who don’t have an accounting background. The QuickBooks user interface consists of completing forms to bill your customers and to pay bills or write checks. Once you understand how to complete the forms, QuickBooks does the accounting behind the scenes for you. To expand your bookkeeping knowledge, check out our Small Business Bookkeeping Accounting Guide.

3. QuickBooks will grow and expand with your business

It has advanced features like inventory tracking and the ability to create budgets. In addition, you can easily add on payroll once you hire your first employee, and sign up for an Intuit Merchant Services account when you are ready to accept credit card payments from your customers. These services come with an additional cost, but the good news is that you can add them with just a click of a button and there is no need to upgrade to a new version.

4. Create financial statements in minutes

QuickBooks comes with 40 + reports that you can run in minutes. This includes a Profit and Loss Statement, Balance Sheet Report and Statement of Cash Flows, which provide you with a complete picture of how well your business is doing. Xero offers similar reporting capabilities. While you can run a Profit and Loss Statement and a Balance Sheet Report in Wave, you cannot prepare a Statement of Cash Flows.

If there is a downside to QuickBooks, it’s that the quality of the support can be inconsistent. As a QuickBooks ProAdvisor, I have had a lot of experience with calling or using chat support while at a client’s office. My experience using the chat support channel has been much more successful than when I call the support line.

Xero: Best Accounting Software for Free Payroll Processing

Xero is not as well known as QuickBooks and is sort of the “new kid on the block,” but it is quickly making a name for itself with over 1 million small business subscribers. Xero has over 16,000 certified advisors (myself included) who can help you get up and running. You can find a Xero certified advisor by entering your city, state and zip on the website.

In my opinion, the look and feel of the Xero interface is very similar to QuickBooks Online, so it is perfect for existing QuickBooks users that are thinking about making a change. Similar to QuickBooks, we have created a free Xero Course with video tutorials that show you how to set up your business.

Xero includes payroll processing for up to 5 employees in their product offerings (up to 10 in premium edition). The benefit of course is that when your business grows to where you need to hire employees, there is no need to upgrade or any additional costs to pay. With QuickBooks, you need to pay an extra cost if you want payroll functionality.

Unlike QuickBooks, Xero allows an unlimited number of users to access the program at no additional charge. This is great if you have several people like your tax professional, CPA, and employees that need access to your data. Similar to QuickBooks, you can set each person up with their own user id and password and give them access to just the areas of Xero that they need.

The downside to Xero is their customer support. Free email support is included in all plans but if you would like to talk to someone, then you have to include a request for a telephone call in your email. The response time for emails is generally 3-4 hours.

Lastly, although Xero is quickly catching up to QuickBooks, they still don’t have the same number of local experts/certified advisors. So if you’re thinking of choosing Xero, make sure your accountant or bookkeeper is onboard.

Wave: Best Free Accounting Software

Heard of Wave before? Neither had I before I started doing some research for this guide. With a price tag of FREE, I must say that I didn’t expect much. But, I was pleasantly surprised at the long list of features this accounting software has to offer for absolutely free. There are limitations on what you can do with Wave, but for a free online accounting software, the functionality is quite extensive.

Wave was designed for contractors, freelancers, and businesses with 9 or fewer employees. They have over 2500 Pros who support small businesses that use Wave. This is significantly less than the 20,000 QuickBooks Pros and the 16,000 Xero Pros out there so it might be more challenging to find a local expert. However, the program is pretty easy to use and they have some great training resources that we will explore later on in this guide.

Wave is able to handle the day to day business basics like invoicing customers, importing credit card and debit card transactions, and running financial statements like profit and loss and balance sheet reports. However, you cannot run a statement of cash flows in Wave. Also, it is limited when it comes to paying bills. You can enter your bills and manage their due dates in Wave, but you cannot actually write a check in Wave. Therefore, you will have to manually write checks to pay your bills and then go into Wave and manually mark your bills as paid. Since this process is manual, your accounts payable account will not be up-to-date until you have manually marked the bills as paid.

There’s also another catch: you will see display ads on the right side of the screen. But to be honest, after working in the program for an hour, I forgot they were there.

QuickBooks vs. Xero vs. Wave: In-Depth Review

Pricing

The three companies we compare in this guide range the gamut in terms of price. Wave is free, and Xero and QuickBooks are $30 and $50/month respectively. Here’s a summary of pricing and what you get with our recommended edition and the premium edition of each product.



5 Accounting Mistakes that Put Your Business at Risk, FreshBooks Blog, small

5 Accounting Mistakes that Put Your Business at Risk

October 24, 2013

Small business accounting Small business accounting Small business accounting Small business accounting Small business accounting

Accounting mistakes can impede the growth of your small business and put it on shaky ground. Unfortunately, mistakes are all too common, especially for new or young businesses.

In this roundup, five accounting experts from the FreshBooks Accountant Network share the most common accounting mistakes they see from small business owners. They also provide insight on how to avoid making these bad-for-business bloopers yourself.

Small business accounting

Mistake #1: Not Staying on Top of Receivables

Getting paid is always an exciting part of running a business. What isn’t as exciting however, is keeping track of your receivables.

When you issue an invoice, a receivable is recorded—meaning that a customer owes you money. Checking your receivable listing you’ll see that customer’s balance as outstanding. As soon as you receive payment from that customer, it should be applied against the invoice to mark it as paid. In practice however, this is easier said than done, and customer deposits are often left to reconcile later on since there’s never enough time in a day.

At tax time you’re left with a bunch of customer deposits sitting in your revenue account and a receivables report that doesn’t make sense. The consequences? Hours wasted updating the receivables listing, overpaying on your taxes, and high bad debts. Making it a point to follow up on your receivables—and apply payments to invoices on a monthly basis—can save you tons of resources in the long run.

Want to skip out on the manual updating of invoices as paid? Consider using a combination of cloud accounting software and accepting online payments, since this process will automate your receivables process, helping you get paid faster and sleep easy at night.

Small business accounting

Mistake #2: Not Keeping Expense Receipts

Many business owners fail to save copies of business expense receipts, which can result in a series of tax, accounting, and cash flow problems. How many times have you looked at your bank account statement and had no clue what that $100 charge is? Is it supplies, a business meal, equipment—or is it a personal expense you accidentally paid for using your business card? Not having an actual receipt that can give you details about the charge can result in incorrectly reported tax expenses and a high tax bill if you re ever audited.

How can you correct your receipts problem? Save a receipt of every business purchase. That process may seem very cumbersome, so here are a few tips to make it easier and less time-consuming: only use your business bank or credit card to pay for business expenses; have an envelope in your bag/car where you can put all your receipts instead of putting them in your pocket, purse, or worse, trash can; once a week/month go through the receipts stored in the envelope and file them to your tax folder or save digital copies in the cloud.

Or better yet, add these expenses while you re on the go. FreshBooks has a very helpful feature I personally use that allows you to add your expenses and even attach digital copies of the receipt from anywhere you are—your desktop or your mobile device. See: invoice vs receipt

Small business accounting

Mistake #3: Not Recording Cash Expenses

“It is crucial for entrepreneurs to track all expenses related to running a small business so these costs can be subtracted from total income at tax time and to keep a better sense of overall profitability throughout the year. While credit cards, debit cards, and checks from your business s bank account are easily linked into FreshBooks, it s easy to overlook expenses paid in cash. Most commonly, some of these expenses are not recorded and thus forgotten—causing the business owner to overstate income for the year! Be sure to develop a method for tracking these cash expenditures. Ask for a receipt from the vendor to enter into FreshBooks when you return to the office or log the expense immediately using the FreshBooks app on your smart phone.”

Small business accounting

Mistake #4: Not Hiring a Professional to Handle Taxes

Small business owners often try to save money by doing their own taxes. In reality, not hiring a professional can cost big bucks down the road. You may not claim all the deductions you qualify for, or you might underpay your tax bill—leading to penalties and other fees.

Spending the money to hire a professional means you’ll have an expert who knows what they’re doing, and can apply the right tactics for your financial situation. They can keep updated on the ever-changing tax laws and help you plan ahead for potential tax hikes.

Paying for a professional bookkeeper can also help keep your costs of an accountant at a minimum, since they do all the prep work. Plus having another pair of eyes is never a bad thing, especially when it comes to finances and taxes. The success of your small business depends on the accuracy and organization of your financial paperwork.

Small business accounting

Mistake #5: Not Getting on the Same Wavelength as Your Accountant

So, you re sitting there with your accountant, in a fancy office, listening to this: EBITDA is strong, way up from last year. You shift in your seat. You nod. It continues, Add in D A, and your bottom line is still positive. And here s the kicker, thanks to loss carry forwards, tax liability is nil.

It s the bane of many small business owners. Not so much the part about meeting with professionals who love spouting jargon and buzzwords. No, that s not the problem. The issue, actually, is that most small business owners are too shy to tell their accountants that they might as well speak Romulan.

You re a small business owner. You re not a financial professional. And nowhere does it say you have to be up-to-date on all the latest accounting blather. Besides, buzzwords, jargon and fancy strategies are why you pay your accountant. Translating all that techno-talk into language you understand should be part of the package.

Think about it. Would you rather hear this? We used accelerated capital cost allowance to bring your tax liability to nil. Or this? There’s a temporary tax program that lets us completely write off all of the new computer equipment you buy. So if you need a new IT kit, buy it now cause we’ll use that cost to get your tax bill down.

Bottom line is, if you and your accountant speak the same language then she’s part of your team. She’s watching your back, and she’s providing advice you can bank on.

If you re looking to find a FreshBooks friendly accountant that understands the needs of small business, check out the FreshMap to find someone near you.

If you re an accountant helping small business clients who may benefit from using FreshBooks, join our network.

Small business accounting Small business accounting Small business accounting Small business accounting Small business accounting

Small business accounting

about the author

FreshBooks is the #1 accounting software in the cloud designed to make billing painless for small businesses and their teams. Today, over 10 million small businesses use FreshBooks to effortlessly send professional looking invoices, organize expenses and track their billable time.



The best free accounting software 2017, TechRadar, business accounting software.#Business #accounting #software


TechRadar pro

The best free accounting software 2017

Business accounting software

Whether you’re a freelancer or a flautist, a graphic designer or a greengrocer, if you’re running any kind of business you really need some kind of accounting software to stay on top of things as we discovered, the age-old system of throwing everything into a drawer and panicking at tax return time isn’t the best.

But that doesn’t mean you need to invest huge sums or learn something hopelessly complicated. The best free accounting software is easy to use and enables you to see how well you’re doing and who owes you money.

Business accounting software

Business accounting software

1. GnuCash

A simple approach to bookkeeping – the best free accounting software around

GnuCash is accounting software designed for individuals and small businesses, and was initially conceived as an open source alternative to apps such as Intuit’s Quicken.

It’s available for Linux, GNU, OpenBSD, FreeBSD, Android, OS X and Windows, and it’s been kicking around since the late 1990s – but the most recent update was just last month.

It handles invoicing and credit notes, accounts payable and receivable, employee expenses and some payroll features too, and it’s quite happy with multiple currencies, cards and accounts. Its sheer flexibility makes it our top choice when it comes to accounting software for kitchen table businesses.

Business accounting software

Business accounting software

2. Money Manager Ex

Straightforward enough for home use, as well as small businesses

Another superb open source tool, Money Manager Ex is well designed and packed with enough features to rival premium software. It’s easy to understand, and you’ll have your accounts and transactions set up in no time. Money Manager Ex’s simplicity makes it a particularly good choice for sole traders or your own home finances.

This free accounting software is a portable app, so you can save and use it straight from a USB stick without installing it. There’s even an Android app for updating your accounts on the move.

Business accounting software

Business accounting software

3. TurboCASH

A heftier accounting tool that will suit owners of SMBs

TurboCASH is free accounting software that’s been in continuous development since April 1985, and it’s hugely popular in Europe, the US, Canada and Australia. It’s available in 23 languages and boasts an online community of more than 100,000 users.

Designed for small and mid-sized businesses (SMBs), it’s probably a bit much for freelancers or sole traders, but if you need something a bit more useful than a cash book TurboCASH can handle VAT, debtors and creditors, purchase orders, multiple companies and multiple users.

Business accounting software

Business accounting software

4. Wave

Slick, cloud-based free accounting that works well for freelancers

With more than two million users, Wave is one of the most successful online accounting services – and it’s completely free for accounting, invoicing and receipts, although if you want personal technical support you’ll need to pay for it. Payroll isn’t included in the free service either, and you do get the odd advert just as you do with pretty much any free online service.

It’s a very well designed and carefully thought out application, and while it’s probably a little basic for medium sized businesses it’s a good option for sole traders, freelancers and small firms.

Business accounting software

Business accounting software

5. NCH Express Invoice

Generate forms, invoices, quotes and orders in moments

With versions for PC, Mac, iPad and Android, NCH Express Invoice caters for most kinds of businesses – and if you have fewer than five members of staff, you can have it for free without time limits or other restrictions.

It’s designed to create invoices, quotes and orders easily, to automate recurring ones and to send them by email or fax, and there’s a decent range of reports to pore over. The free accounting software is really just a front-end for a web-based service, but that’s no bad thing unless your business struggles to get a decent internet connection.

Business accounting software

Business accounting software

6. VT Cash Book

Minimalist bookkeeping that uses Excel for the grunt work

It’s not going to win any awards for aesthetics, but VT Cash Book isn’t there to look good: its priority is to record day to day cash transactions with the least amount of fuss. It uses Autocomplete to speed up data entry, supports multiple bank accounts and bank reconciliation, can be used to prepare VAT returns and enables you to create profit and loss, balance sheets and ledgers.

The free accounting software installs alongside its companion program, the paid-for VT Transaction+, but you don’t need to buy the latter to use the former.

Business accounting software

Business accounting software

7. Invoice Expert

A good option for anyone selling physical products

The free version of Invoice Expert is limited to 100 customers/products, but it retains the features of its US$69.95 (about 50, AU$90) sibling including inventory and customer management, invoicing and quoting, purchase orders and inventory management.

This free accounting software is a little bit intimidating at first glance, especially in the template-editing screens, but it’s straightforward enough. It’s an American program but it uses your Windows location to set the currency, so it should adjust itself accordingly.

Business accounting software

Business accounting software

8. Adminsoft Accounts

A complete money-management toolkit for small business owners

These days genuine freeware – that is, software that’s given away for free without adverts, bundled software or ulterior motives – is a rare thing, but it describes AdminSoft Accounts: more than 300,000 people have taken advantage of what is a surprisingly thorough free accounting system (and an unusually honest set of terms and conditions).

It can handle not just invoicing and statements but remittance advices, stock control, purchase orders, budgeting and some HR functions too. It’s a UK program so the default is pounds sterling, but it works happily in other currencies too.

Business accounting software

Business accounting software

9. QuickFile

Free small business accounting in the cloud no desktop software needed

Designed specifically for non-accountants, QuickFile offers free tiers for small businesses while still delivering automatic invoicing, purchase receipt management, quotations and multi-currency support.

It s cloud-based rather than a software download, and if you like the free version you can upgrade to an ad-free, more advanced version with bulk invoicing, revision history and a host of power user features for a modest fee.

Business accounting software

Business accounting software

10. Apache OpenOffice

Make your own accounting sheets using the free office suite

You don’t necessarily need a dedicated free accounting program, especially if your requirements are pretty straightforward. For many businesses and sole traders, all you really need is a simple spreadsheet – and with a price tag of zero, Apache OpenOffice fits the bill nicely.

It’s well worth browsing the library of templates once you’ve downloaded the main app, as there are plenty of user-created templates that you can easily tweak to suit your own specific requirements – not just for accounting, but for other common business tasks too.