Basics For Small Business Accounting

Basics For Small Business Accounting

The key to the survival of your business is to understand and maintain its financial health. For entrepreneurs, carrying out basic accounting can be tedious especially for those without the required training. However, the money, time and other resources invest in the business can only be nurtured to grow with proper and regular monitoring of the financial standing of the enterprise –even the fortune 500 companies.

Keeping up-to-date financial records has many benefits but you cannot do that if you are not familiar with the fundamental terms in accounting and how important they are. After registering your business, you must be able to keep your personal asset and liability from that of your business. One way to do this is through proper bookkeeping and thorough accounting.

Though some use it interchangeably, bookkeeping is quite different from accounting. Bookkeeping is the daily recording of financial transaction while accounting is the overall process of recording, interpreting, analyzing, summarizing and reporting financial data. Therefore, bookkeeping is only one of the processes of accounting.

In accounting, you usually hear the words assets, liabilities, incomes and expenses. The business assets are what it possesses, be it furniture or cash, inventory and even money owed to the company. Liabilities, on the other hand, are what the enterprise owe (not own), these include loans, accrued tax and rent and wages payable. Just like income, assets must be increased regularly to keep the business growing while liabilities, just like expenses must be kept to the barest minimum.

Account receivables are the amount due to be collected from customers for sales made. Account receivables report must be prepared to show those that are overdue for payment, which helps to keep track of your cash flow and budget system. In contrast, account payables are the amount the business owes its suppliers. Account payable report serves as a reminder for due payment. Timely payment helps to build good rapport between you and your vendors or suppliers.

Regular payment of taxes not only keeps your business breathing but also reduce unnecessary interference from the government. Small business owners must prepare sales tax report. The amount to be paid as tax is calculated by adding the total annual income of the business, which can be done with MyBooks cloud accounting software, and subtracting the expenses from it. You must also keep records of the sales tax returns filled annually.

The purchases account is essential for calculating the cost of goods sold by the business but it is also necessary to prepare the sales account because that is how you know what profit from the goods sold.

As your business continues to grow, you will need helping hands –employees. There is, therefore, a need to prepare payroll account to reflect the amount you pay this employees and how often.

Managing your business account, preparing the necessary report and interpreting it are continuous routines that need to be done. This does not necessarily have to be a boring task because MyBooks cloud accounting software is here to simplify the task for you.







Benefits of Using Cloud Accounting Software

Benefits of Using Cloud Accounting Software

Business owners have so many tasks, which require their attention, and accounting is not an exemption. Cloud accounting software simplifies accounting tasks while ensuring accuracy and data security. Aside from this, there are other reasons cloud accounting software gives you an edge over your normal accounting software, but first, what is cloud accounting software?

Simply put, cloud accounting software is online business software that helps to manage finance over the web. You are not required to install any software on your computer, for as long as there is an internet, you can access the financial standing of your business. The benefits online accounting software offers to users are enormous and must be considered.

  • It provides easy access to your account. Accounting software that is not cloud-based must be installed on the user devices before it can be used on such devices. However, with cloud accounting software, you will have access to your account balance, check invoices, update accounting information and monitor your business profits using your smartphone, tablet or notebook.


  • It ensures security. Most people are concerned about the safety of their financial data with cloud accounting. With MyBooks cloud accounting software, your data is safe and secure. The automatic and constant backup, which it provides helps to prevent loss of information. Frequent security upgrade also eradicates the fear of compromise to your financial information even if your computer crashes.


  • You can share and connect with other people. Cloud accounting software allows you to collaborate with your employees, team and other entrepreneurs. Many people can work on the same file simultaneously from different locations. With MyBooks cloud accounting software, you eliminate the need to share financial information via email and you save the time waiting for the other person to finish working on the same data.


  • It is affordable to use and maintain. Cloud accounting software eliminates the constant need to buy a newer version of accounting software. The software is updated in real time and at no cost to the user. There is no need for a professional accountant and IT support staffs, therefore the cost of hiring these professionals are removed. The money can be used in other areas of the business and this promotes growth.


  • Cloud accounting software is easy to use. You do not need a crash course or a degree in accounting to utilize the software. MyBooks cloud accounting software guides the user through its simplified, systematic process that reduces the monotony of bookkeeping. You can be sure of precision while also managing your account conveniently.


  • It increases productivity. The time spent on calculation is drastically reduced through the software. The automation feature it possesses helps generate an up-to-date report and real-time statement. The software calculates VAT, gives you your profit or loss for the year, serves as a constant reminder for your account payables and receivables and prepares your payroll account. This gives you the time to focus on other aspects of your business.


Small Business tips

Simplified Invoicing Tips for Small Business

One of the major reasons for establishing a business is to make a profit but you cannot generate income if there is a pile of debt to be collected. As a document that describes details about a product given to a buyer, invoicing is quite necessary for small businesses. A well-written invoice gives detailed information of goods or service rendered, including the amount and the period a buyer is expected to make payment.

As essential as an invoice is, most entrepreneurs see it as a pain, which they would rather avoid completely. These tips will simplify the complex process of invoicing and increase your chance of prompt payment.

  • Use cloud-based invoicing system. Accounting system has gone beyond pen and paper to online accounting software. With so many tasks at hand, small business owners need to be constantly reminded of some of the less exciting works. Cloud invoicing tools like MyBooks make automatic invoicing easier and faster. It also keeps your invoicing records safe, secure, affordable and makes payment convenient for the buyers.
  • State the time of payment concisely. Ambiguous invoicing can lead to conflict between you as a small business owner, and your buyers. Prompt payments by the buyers ensure the growth of your business. Therefore, you need to be clear and precise while stating the schedule of payment. By making the expected period of payment clear to the buyer, you avoid the risk of bad debt through miscommunication.
  • Keep track of your invoice. Timely and polite reminder of buyers when a payment is due is one of the extra services you could offer as a business owner. Constant communication between you and the buyers set you aside from other sellers. This improves patronage, increase sales and promotes growth. Be sure to be firm but polite while reminding a buyer of a due payment as this shows how serious you are without sounding rude.
  • Be mindful of invoicing language. Keep it simple and clear. Make your invoice easy for your clients to understand. There must have been an agreement even before the transfer of item from you to the buyer. This agreement must be clearly defined. The term of payment, contain when to pay, how to pay and what to pay for, the clarity of this term increases the chance of being paid on time.
  • Solve payment problem. With the introduction of online payment, transfer of money is now faster. Consider different means of payment before choosing any suitable methods. Do not just rely on the traditional bank transfer, use online payment platforms and ensure flexibility in the way you accept payment. You would have different clients with a varied preferred method of payment; you can solve the problem of flimsy payment excuse by adopting more than one payment option.
  • Keep a record of your invoice. Keep a good record of your invoice items for later reference. By automating your invoice, you will be able to track and label invoice correctly. This allows you to address any invoicing complaint made by your buyers.

 Invoicing does not have to be tasking, with MyBooks Cloud Accounting Software, you can simplify the complications of invoicing.



Small Business tips

Staying on Top of Expenses as A Small Business

As a small business owner, you cannot deny the headaches accounting causes you. It won’t ever cross your mind how difficult, confusing and time-consuming accounting can be when you are pumped up with adrenaline at the start of the business. In the end, it is that part of your day that your fear, yet you can’t avoid it. Accounting for small business even get scarier if you are not skilled or trained to carry out such task.

There’s always light at the end of the tunnel for you as small business owners with cloud accounting software or what others might call a small business accounting software. This online accounting software is your lifesaver when you are at a dilemma with your finances. With this cloud accounting software, you are able to do the following in a stress-free way;

  1. Educate Yourself On Your Finances

Not every small business owner has the skill to understand a financial statement. This is where a small business accounting software comes in as it makes every appear simple rather than the complex figures on the financial statement. On every financial statement, there are four areas that are essential; cash flow, balance sheet, income flow and lastly, the shareholders equity. Know these areas and you are good with your finances.

  1. Never Mix Personal and Business Finances

With a cloud computing software, you will be able to avoid the mistakes of combining your personal finance with business finance. Don’t record that new school boots for your teenage daughter as a business finance, it’s personal and should remain so. It’s better to keep a separate bank and credit card account for either personal or business purposes. If you do, things will get complicated fast and you will have yourself to blame. The functionality of a small business accounting software is to put you on top of your business finance and not personal expenses.

  1. Invest in a Small Business Accounting Software

With cloud accounting software like MyBooks, you can keep abreast of your finances from wherever and whenever. You have real-time insights to pull up your business financial data from home, office or even your leisure time. Imagine being on a basketball court with a potential investor, your online accounting software can help you pitch your business potentials easily to a prospective investor or client. No need for pulling up paper from anywhere, just access the cloud and you have it right in your hands. You will be sure of having no errors which are not avoidable by humans, and it’s hassle-free.

  1. Be Frugal and Always Look for Means to Cut Cost

It’s still a business that is yet to break-even still trying to make enough profit to stay in business. At this point, you should be more interested in means through which you can cut cost. For instance, rather than keeping accountants on your payroll, you can settle for an accounting for business software. This helps to lower recurrent cost while you are trying to up your profit margin.


Do Your Small Business Finance Without an Accountant

Small businesses just like big ones need to monitor their expenses and incomes. This, among other things, is what most referred to as accounting. Accountants, using pen and paper traditionally analyze the financial standing of businesses – irrespective of their size. It is believed by many that one needs a good knowledge of technical accounting lingo to carry out the task of an accountant. However, with the help of accounting software, a small business owner can now carry out simple accounting, personally, without an expert.

Accounting software is application software that records financial and accounting transaction. Many accounting software are available now at the disposal of an entrepreneur. However, accounting software needs not be installed on the users’ computers, and this is where cloud accounting comes in. This is because modern the methods of doing things over the internet have also extended to financial analysis. What then is cloud accounting?

Cloud accounting –also known as online accounting- is an aspect of cloud computing which deals with the management of accounting software on the cloud instead of the user’s computer. It allows business owners to manage their finances online using common web browsers and applications.

There are many reasons to use cloud accounting software like MyBooks by an entrepreneur. Apart from the obvious fact that it saves small business owners the money to hire a professional accountant, it also reduces the cost of purchasing and updating accounting software.

The convenience which cloud accounting gives to small business is tremendous. You can navigate among the different devices you own at any time. From your smartphone to your tablet and your laptop, you have the advantage of managing your finances on the go. You can also share financial information with other people easily.

The security of your financial data is integral to the survival of your business. Therefore, MyBooks cloud accounting software helps secure your information against theft while maintaining regular update. Furthermore, the loss of any of your devices does not hinder your use of the online software.

In addition, precision is important while dealing with numbers in order to avoid an unnecessary loss to the business. Mistakes in calculation are eliminated with cloud computing. Accounting history, trends, profits, and losses become easy to keep track of by small businesses and thus increase efficiency.

Other important benefits of cloud accounting are the analysis tools it provides which reduce the complexity of accounting. It also helps to manage tax compliance, pays account receivables, displays trends, manages inventory, remit invoices and prepares tax reports.

Cloud accounting software carries out so many functions for entrepreneurs who are just starting a business and those who already own a business. For small business owners, especially those without many employees, there are so many tasks to be carried out and the ease of carrying out these tasks are usually appreciated. Micro business owners can carry out accounting like a pro with cloud accounting software. It is like having a personal human accountant but with so many other features.


Small Business tips

Using Digital/Voice Assistants for Small Business

With rapid improvements in technology, life is moving quite fast into a more digitized era. A similar case can be acknowledged for the small business industry. Introduction of technology as intricate as it is for big business giants, the complexity and competition among small businesses have been intensifying. Therefore, small business owners are advised to keep up with the changing digital trends. And one of these latest trends includes the use of digital or voice assistants. Products like Apple’s Siri and Amazon’s Alexa are changing the game for managing small businesses.

How to Use Artificial Intelligence Powered Digital Assistants into Your Small Business

A voice assistant technology can be used in multiple ways for a small business. One of the common things in an average small business is fewer people doing more work. Often, the small business owner and managers will find themselves wearing more than one hat at work. It can become exhausting and complicated to complete multiple tasks when you have got only so many hands. A digital assistant, in this case, can be a problem solver, or at least, problem minimizer.

Here is how you can use a voice assistant for daily small business tasks and operations:

Manage Accountancy and Financials

With digitization becoming a hot trend across the small business industry, many have installed small business software like online accounting software. With the help of a voice assistant, the software can be accessed with minimal interaction with any screen you might be using. It saves time and allows you to access important information on the go.

Order Business Essentials

Your business’s efficiency can often become halted with the lack of seemingly minute supplies. The daily supply of things like printing paper, printer ink, kitchen essentials, office stationery, etc. are more important than many people think. With voice assistants, you can easily order them online with much less hassle.

Manage Business Travel Plans

The use of digital voice assistant can make your business travel pans much easier to manage. You can easily book flights, reservations, or rent a car. Whether you are traveling locally or internationally, your assistant can come handy in determining the destination’s weather, traffic conditions, and more so you are prepared accordingly.

Stay Up to Date on Your business Schedules

Voice assistants can help you schedule office meetings and other events. You can sync the technology with your email and calendar. It will remind you of the dates and times the meetings and events are due at. Not only will you have a less chance of missing out on an important event but you can also keep other parties involved up to date by sharing notifications.

The benefit of using voice assistants is quite clear from the multiple ways they can be integrated into a small business. They considerably reduce manual working and syncing with other technology can provide even more productivity out of small business software.

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