Posted on January 9, 2020
According to some studies, about one-fifth of small businesses still don’t use an Accounting Software Program. They are relying on spreadsheets or paper and pencil to track income and expenses the “old fashioned way.” While this can certainly work - it did for centuries - it’s not the best use of anyone’s resources. Just because you can do something doesn’t mean you should. To the other approximately 80% who do use accounting software - congratulations! You’ve recognized that you can be more efficient and probably more accurate by using software written specifically to take care of bookkeeping and accounting chores. [...]
Posted on December 26, 2019
Time to turn the calendar not only to a new year but a new decade. What a wonderful time to take stock of how things are and make plans for the best possible years ahead. Here are some of the very best accounting tips for small business in 2020. Technology - If you haven’t heard this by now, where have you been? Technology rules. Automate every single thing you can. There is no reason to run your business like a mid-century tribute to Mad Men. Computerize. Digitize. Simplify. You can find an App for just about everything you can imagine. [...]
Posted on December 26, 2019
Fine wine gets better with age. Your Accounts Receivable do not. What is an Accounts Receivable aging report, and what does it mean?  First of all, your Receivables are the amounts that your customers owe you. An unpaid invoice is a Receivable. All of your unpaid customer accounts make up your Accounts Receivable. The aging report gives you a picture of how much is owed and how long it has been owed to you. Let’s take a deeper dive into that report. In most software programs, your Accounts Receivable aging report will look like this:   This report gives you [...]
Posted on December 2, 2019
When you start your own business, there are a lot of things to think about. You’re concentrating on that thing that you do best and may not even consider some of the accounting tasks that need to be done. Invoicing could be one of them. First of all, what do we mean by Invoicing? It’s pretty simple. If you want to be paid, you need to send your customer an invoice. It’s the document that explains what you sold and how much you charged for it. Your customer wants to see this document for a couple of reasons. First, he [...]
Posted on December 2, 2019
Many small businesses struggle with one very important component daily - Cash Flow. What is Cash Flow? What does that really mean? And why is it so important? On a basic level, it’s straightforward. Money flows into your business - payments from your customers - and money flows out of your business - payroll, expenses, etc. If you have more coming in than going out, you have Positive Cash Flow. If you have more going out than coming in, that’s the opposite: Negative Cash Flow. Obviously, you’d rather have positive cash flow because it’s exactly what it sounds like - [...]