Why Small Businesses Should Care About Accounting Software

You’ve heard it time and time again: “Accurate bookkeeping is necessary for business health.” This isn’t meant to come off like a scolding finger-wag. Bookkeeping is simply a foundational aspect of running a business and should be regarded as such.

Bookkeeping and accounting are inherently different, though the two practices share similar implications. Accountants typically focus on preparing and processing statutory returns, giving advice on legal structures, and offering their expertise on general finances. Bookkeepers, on the other hand, tend to focus on maintaining financial organization, recording and reporting on business transactions, and providing detailed statements that reflect the health of a business. Bookkeepers have been expanding the scope of their expertise to include things like developing and reviewing internal business processes and employing other technologies like document management and inventory control to improve overall business efficiency as well. Bookkeepers also tend to have areas of specialization, which allows them to take more of a prescriptive approach when addressing your business needs.

When you work with a seasoned bookkeeper who knows the ins and outs of accounting software, you’re able to hand off the financial grind over to the pro and focus on doing what you do best – running your business. So, why should you care if your bookkeeper works with the latest accounting software technologies?

You get excellent insight into cashflow.
As a small business owner, your number one priority is cashflow. 96% of small businesses fail within 10 years because of financial illiteracy. Don’t become a statistic. Accounting software provides accurate visibility into the money coming in and out of your business. Your bookkeeper makes sure all transactions are properly sorted and reconciled, while taking other expenses like taxes, bills, and payroll into account to provide the most up-to-date numbers. Your bookkeeper can also advise on the best POS and payment systems that work for your business and provide even clearer insight into your total revenue. Working with a bookkeeper who can make sense of your cashflow not only sheds light on profit and margins, it allows for better business forecasting as well.
World-class reporting makes you more business savvy.
Financial reports give you a snapshot of your business health and progress. Accounting software that offers robust reporting capabilities informs your bookkeeper on your business financials. Perhaps you have specific questions regarding sales tax, inventory, or billable expenses. Or, maybe you need a quick cash summary. Accounting software allows your bookkeeper to customize reports, which makes it easier to get the answers you’re looking for. Additionally, real-time reporting lets your bookkeeper share exactly how your business is performing at any given time, so you don’t have to wait for monthly or quarterly financial reviews.
Tight security keeps your financials safe.
These days, the most sophisticated accounting software live in the cloud – and the benefits that come with that are clear. Your bookkeeper can access your financial information anywhere, anytime. The cloud tends to prompt questions about security, though. Bookkeepers know that accounting software should come with multiple layers of protection, data encryption, and secure storing. The best part about working with a bookkeeper who is proficient in using accounting software is that you can task them with figuring out the systems.

Think about what your top three business strengths are. Is bookkeeping one of them? What about cloud accounting software? If you’re like most small business owners, the answer is probably a timid “no,” and that’s okay. You know that proper bookkeeping isn’t something you can ignore, but you also know that your expertise lies elsewhere. On top of that, time is scarce and spending days or even weeks to learn accounting software sounds daunting. Why not hire a professional who employs the latest software technologies and knows your industry inside out to manage your financials for you?

Chat with one of our friendly industry experts today: call us at 844-629-8797 or click below to request your free consultation.

Get started

How to Deduct the Cost of a Business Party

Parties and other events are a great way to engage and reward employees and customers, and it’s also an opportunity to find tax deductions. But the tax rules for such events are strict and require careful planning and navigation to ensure you can claim your deductions with confidence.

Read on how to deduct the cost of a business party while also being conscious of potential tax deductions.

Small Business Tax Deduction Checklist – Part 2

The various taxes that small businesses have to pay out each year are significant, so it’s important to be aware of every opportunity the tax man gives you to reduce your bill. So be sure to consider whether any or all of the items in this checklist apply to your business and discuss them with your bookkeeper and accountant to ensure you are documenting and claiming every deduction available to you.

Small Business Tax Deduction Checklist – Part 1

With tax season approaching, you will want to take advantage of any and all deductions legally available to you. And if you aren’t satisfied with this year’s write-offs, you’ll want to start looking ahead next year to ensure you are aware of and actively documenting everything you could be deducting.

Six Simple Steps to Protect Yourself From Financial Fraud

Financial fraud is the number one consumer complaint in the United States, and it can have devastating consequences for victims.

But by being proactive and following some simple steps, you can make it much more difficult for criminals to steal your money or your identity. Read about implementing some measures to protect you!

How to Reduce Your Business’s Taxable Income

Now is the time to start thinking about the coming year, and what changes you could make to reduce your bill next time the taxman comes around.

Take a look at several ways businesses are reducing their tax burden.

5 Tips to Drive Profitability with Financial Reporting

Good financial reporting can help a business track what is really important for profitability and guide good decision-making for the future. Many small businesses struggle to really take full advantage of their financial reporting.

Take a look at five tips that could make the difference in whether your financial reports tick boxes or truly help drive growth.

Cloud-Based Invoicing Apps for General Contractors

Accounting and invoicing for general contractors have always been a paperwork-intensive process, tracking various construction-specific tasks like estimates, sourcing subcontractors, handling change orders, and partial-completion invoicing.

Let’s take a closer look at what makes construction invoicing different – and difficult – and consider a few highly-regarded apps that are worth considering, not only for invoicing but potentially for the entire end-to-end construction process, from submitting bids to paying contractors to customer relations.

7 Overlooked Tax Deductions for Business Owners

Filing as an S Corp eliminates the self-employment tax on all income that many small businesses pay, while at the same time keeping some income out of reach of things like Medicare and Social Security taxes. It offers you the opportunity to take part of your income as a W-2 salary, with the associated federal program taxes, and the rest of it as distributions that are not subject to those taxes.

As with most “great deals,” though, there are potential pitfalls. It’s important to take the process seriously and abide by the rules in order to reap the benefits while avoiding some very serious penalties.

Let’s take a look at the benefits and potential pitfalls of filing as an S Corp, and how you can pay yourself in a way that maximizes your tax benefits while minimizing your compliance risks.

How to Pay Yourself as an S Corp

Let’s take a look at the benefits and potential pitfalls of filing as an S Corp, and how you can pay yourself in a way that maximizes your tax benefits while minimizing your compliance risks.

Why Small Businesses Should Care About Accounting Software

Search Posts

Categories

(757) 327-7040

Current Client? Use BKE Insight to schedule a call or contact your team as well!