Running a small business means many hats at a time. There are various things which a small business owner needs to take care of, in order to assure the smooth functioning of the firm. But many businesses are not able to give equal time and effort to every aspect of the business and this is why 95% of small business fails in the first five years. Although there are many reasons for not being able to run a small business successfully and not managing accounts well is one of them.
Accounting operations are one of the most important parts of any business because it deals directly with the most paramount part of any business; money. Without proper accounting operations, no business will be able to survive in the long run. In the rush of hiring better employees and advertising their company, many small businesses forgot to give proper time and attention to accounting operation.
There are other cases as well where small business finds accounting operations to be very time consuming and complicated process. And if you are among such group of small businesses that find accounting operations to be very complicated and time taking then you have come to the right place. In this blog post, we are going to talk about how a small business can simplify their accounting operation.
Using cloud accounting solution
One of the best ways to simplify accounting operation is to use cloud accounting solutions like QuickBooks on the cloud. The cloud accounting solution is one of the most advanced accounting solutions of the modern day era. Many small businesses think that cloud accounting solution is a costly solution and it will burn a hole in their pocket but that’s not true. The proliferation of cloud accounting adoption among small business is a proof that this splendid accounting solution is affordable.
The amazing cloud accounting solution allows you to access your data from anywhere and at any time. In addition to this, using cloud hosting solutions like cloud hosting for QuickBooks also offers you improved collaboration, automation, high uptime and secure access. All these features of cloud accounting solution simplify your accounting operation to a great extent and you are able to get more from your accounting efforts by putting less effort.
Track and sort all business expenses
Keeping a track of business expenses isn’t rocket science but still most of the small businesses are not able to do it because of the lack of consistency. It is very easy to adopt a habit which is easy rather than adopting a complex one. It is true that keeping track of businesses expenses is overwhelming but by using the latest technology, you can simply take the picture of every receipt and record it automatically. Once you will develop the habit of regularly archiving your receipt, chances of missing one will be nullified.
Even if you have good intentions, you still can misplace paper receipts. This will make you fall behind your bookkeeping. Just by using the expense tracking option of the modern day technological marvel; cloud accounting, you will be able to take pictures of your receipt and store it in the cloud. The simplicity of the process allows you to stay on track.
Keep all contribution and donation receipts
As a small business owner, you should know that all the contribution and donations are 100 percent deductibles. This means that you won’t have to pay any taxes on them. But in order to get 100 present deduction, you will have to keep the receipts that are provided in order to file the claim for tax deduction. Most of the contributions and donations are one-time payment and that is why it is very easy to keep records of that will reflect these expenses and justify them while filing taxes.
You should record donations and contributions just like other expenses, but within their own category. If you will record donations and contributions in a different category then the job of your accountant will become much easier. With separate records, the accountant won’t have to waste time finding these records and separating them while filing taxes.
Create a flawless invoicing system
The more organized you will be with your accounting operation, the less hassle you will have to go through. In today’s modern era, choosing the right accounting software is very necessary and the first step is to create a reliable invoicing process. There are many options in the market and therefore it is important for you to go with that option that has all the features and integrations that you need.
Without an accurate invoicing system, all your efforts of keeping your accounting operation on the right track will go astray.
Accounting is the backbone of any company and that’s why small businesses should dedicate enough time and effort in their accounting operations. Use the above-mentioned tips and simplify your accounting operation.