Small Business Accounting Tips in 2020 0
Let’s say it as it is; starting a business is no joke. You, as the owner, are tasked with several responsibilities that demand your attention. You’d have to plan and launch strategies that will boost your bottom line, hire staff, and on top of that, staying in control of your finances.
While you can confidently handle the two concerns, it may be exhausting to manage your accounting efficiently. This article explores some of the best accounting tips for small businesses that you can incorporate in yours.
Accounting Tips For Small Businesses
The life force of your small business is in your accounting. Below are some tips you can implement in your business this year.
Maintain Distancing Between Your Personal And Business Finances
More often than not, small business owners tend to rope personal and business transactions together. This becomes a financial nightmare when one begins to painfully sort out these finances for clarity and bookkeeping purposes.
It is important you separate your personal and business dealings by creating a bank account for your business. By so doing, your business dealings will never appear in your personal transactions and vice versa.
Keep your receipts tidy
It doesn’t matter what kind of business you run or its size, it is important that all your receipts are filed and stored properly. From stamps, stationaries, and any other related receipts, your business receipts may be kept for reference purposes.
Even if you don’t plan to keep some of your receipts, your business expenses must be kept so that you can claim them later.
Get an accounting software
Everyone’s going digital—including small businesses. It is important that your business is using professional accounting software that will ease the long process of bookkeeping manually.
Accounting systems for small businesses typically take the weight of accounting off your shoulder and allow you to focus on productive ventures for your business.
Attend Accounting Workshops
As a business owner, you need a better understanding of how to manage your finances effectively. An accounting workshop will equip you with information about taxes and how to improve your accounting.
If there are no physical workshops available, you can register on an online workshop.
Budget for Taxes
It is important to note that when the revenue starts coming in, part of it belongs to the government. Thus, you need to budget for it. One way you can achieve this is to set aside some of the revenue for taxes from your business launch.
Understand Tax Rules
Federal and state laws are constantly changing. It is important that you are fully aware of these taxes and how it applies to your business.
This is a grey area for most business owners. And that’s why you should leave this responsibility to a professional payroll provider. These agencies have an expert in taxes and will always provide your business with permanent taxing solutions.
Remember to stick to tax deadlines
One challenge small business owners face is sticking to tax deadlines. This inadvertently impacts the business in a negative light.
You should always remember that your business must remit taxes to the federal and state governments and start planning for it.
Hire a payroll provider
Apart from handling the complexities of state and federal taxes, a payroll provider does a lot more. Payroll fraud, to date, cripples large and small businesses. Issues such as identity theft, illegal timesheets fillings, embezzlement of business revenues, etc. are amongst some of the challenges small business owners face.
Hence, it is important to hire the services of a professional payroll provider to totally eliminate such occurrences.
Managing the financial aspects of your small business is a big deal. However, with the aforementioned tips, you’ll well be in control of your business.
How To Manage Business Costs Effectively 0
Admit it; Coronavirus did a number on us all. While governments the world over imposed stringent control measures in place to curb the spread of the pandemic, businesses (SMEs, startups, and even major heavyweights) took a hit.
Businesses, before the pandemic, operated smoothly and freely with resources (both capital and human) at their disposal. Virtually everything from board meetings, marketing strategies, customer service, to payroll and even onboarding was heavily dependent on the corporate office setup where things were done manually.
But with everything 2020 has thrown on us all, brands have begun to see the need to take advantage of impressive digital tools to run business costs, increase productivity, boost brand presence, and improve the experience of employees working remotely.
Ways you can manage business costs efficiently
If you’re a business executive, how do you manage and run your businesses effectively? How do you ensure your tax-deductible business expenses are inputted accurately? We’ll be looking at the following areas:
Time and Attendance Tracking
Attendance of workers and comprehensive tracking of their work schedules have contributed to the overall success of businesses and improving their bottom-line savings. However, due to the global pandemic, a lot of companies and businesses have resorted to having a higher percentage of their workforce working from their homes.
Your business should take advantage of time and attendance tracking software to garner the working hours of your employees, whether they are making use of their mobile phones or PCs.
This software creates the avenue for your employees to tender the daily hours worked remotely to foster accuracy. Another advantage to this is that as their working hours are being tracked, you will be able to know which particular employee is working overtime and make arrangements for their overtime pay.
Also, these digital tools allow workers to see their time and work schedules for the week in advance, so they can prep themselves for their various tasks.
Every employee deserves to be paid handsomely for their service to your business. It is a crucial aspect to boost business productivity and growth. The amount of time spent manually compiling each worker’s tax information, overtime, basic salary, and other allowances may affect other crucial aspects of your business.
Taking advantage of an online payroll service will save you from the long process of computing fees and making costly financial mistakes.
For an employee to be quite successful in their job responsibilities, their background, and relevant experience has a major role to play. This, you can find out during the onboarding process, as you’d collect vital information from them and inform them about the vision of your business.
Taking advantage of onboarding software, you’d be able to verify that they’ve submitted their ID documentation, state withholding forms, deposit information, I-9, and W-4 forms, and other vital information.
With the aid of human capital management, managing benefits has become easier. However, more time is spent procuring benefits manually.
With an online human capital management software available, you will be able to securely gain access to forms, make changes, and update them in real-time.
For a business to thrive, it is crucial for it to have a platform that tends to the concerns of workers. With most of your workforce now working remotely, it is important to have a digital case management platform that will accommodate their various concerns.
This online platform also presents the opportunity for your employees to field their progress reports and allow management to review and track the efficacy of business decisions and compliance.
Consultant-In-A-Box is an all-inclusive software that provides impressive solutions to your brand’s concerns. Take advantage of our unique platform by contacting us today. You’d be glad you did.