Every small business needs to keep accurate records, but not all accounting systems are created equal. That is why it is important to know your options regarding bookkeeping software. Sage bookkeeping software is a popular choice among small business owners, and here are 4 reasons why you should consider it for your bookkeeping and accounting needs. We will look at its intuitive interface, straightforward reporting features, ability to integrate with other programs, and excellent customer service. So, let us get started.
Conclusion Small businesses are the backbone of an economy and deserve the best bookkeeping system. Sage is easy to use, cost-effective, and secure and offers various features that make it one of the most powerful bookkeeping solutions for any business. With Sage’s help, small businesses can rest assured knowing their financials are in safe hands. However, if you want to ensure more streamlined accounting and bookkeeping, consider outsourcing. Outsourcing provides access to a pool of accounting and bookkeeping experts under the roof. For instance, if you own an e-commerce business, you will no longer need to search for e-commerce accountants because you will easily get all the assistance from the outsourced team. Thus, whether your business is growing or starting from scratch, consider investing in a reliable accounting and bookkeeping service provider that utilises popular software like Sage and experience growth in your business.
0 Comments
![]() Project accounting is tracking and managing a project’s financial results. Project accounting ensures that each stage of your business project is managed logically and organized to ensure that you get the best value for your money. It means that you record each cost, expense, and revenue at different stages of your project to see if any waste or fraud is involved. Even the smallest details can help you to avoid wasting money down the road. Therefore, you need to follow important project accounting principles as they help keep the process accurate and simple. Keep reading to discover what are the principles of project accounting. What are the principles of project accounting? Project accounting is tracking and managing a project’s financial results. Simply put, it’s the act of identifying what was necessary to complete the task and what was left out. To ensure everything is done accurately, a set of principles are followed while using project accounting. The principles of project accounting include: Cost principle- As per this principle, you must record the costs of projects as their original value and not according to their estimated market value. Matching principle- According to the matching principle, expenses incurred during the production process should be attributed to the period in which they were incurred. As a result, revenues and expenses are consistently matched over time. Consolidation principle- As per the consolidated principle, you must use a systematic approach to developing revenue and costs on a project and consolidating financial operations into a single account. You can follow a procedure to establish revenue and costs and work with other parties to consolidate financial operations into a single account. Prudence principle- Management’s best estimate of how much revenue or cost may occur for a project is determined on a prudence basis. Control principle- The control principle states that you monitor financial activities through procedures and processes to guarantee regulation. After making adjustments for nonrecurring events, managers can determine how well a project performs. Liability principle- The liability principle requires you to account for all expenses associated with carrying out a project, including any contract penalties and liquidated damages, which are expenses associated with breaching a contract. Resource allocation principle- Managers may allocate the same amount of resources to different projects according to their financial return and risk without reallocating money in subsequent periods. Full disclosure principle- The full disclosure principle requires that all significant events be recorded in the financial statements to be more transparent, which can improve accountability. Summing up As you can see, the principles of project accounting are simple. All you have to do is keep track of the cost, expenses, and revenue at different stages of your project, and you’ll be well on your way to avoiding wasteful spending. The best part is that you can start today. The project accounting process is simple and easy to understand. Once you start tracking, it’ll be like having an accountant watching over your shoulder every step of the way. You can also hire an accounting outsourcing firm to manage the process and ensure that all the necessary principles are followed. ![]() Business advisory firms are businesses operating in the field of business consultancy. They help their clients with various tasks related to their businesses, from developing strategies to marketing and sales. Business advisory firms may also provide regular training or workshops on specific subject matters, such as finance, marketing, or human resource. Consider working with an advisor if you operate a small business and want expert guidance on starting your company or growing it successfully. Even if you don’t have much capital at your disposal, an advisor can help guide your business idea to success and implement effective strategies to grow it faster. Let us know more about the services covered by business advisory firms here. What services can a business advisory firm provide? A small business advisory services provide comprehensive, objective, and solutions-oriented advice on all aspects of your business. The firm’s services may include business, strategic, financial, due diligence, and other services specific to your industry. The advisory firm also specializes in helping clients find the best possible advisors for their needs. Some services offered by business advisory firms include:
How to find the right business advisory firm? The best way to find a business advisory firm is to ask friends, colleagues, and family members involved in the business world. Ask them what kind of services they recommend and what makes a good business advisor. You can also browse business associations and websites that connect professionals in your industry. If you’re still looking for a firm, try contacting associations, or search the yellow pages under “business consulting” or “management consulting”. Final Thoughts The benefits of working with a business advisory firm are numerous. The advisory firms help make the business more efficient and goal-oriented to achieve enhanced productivity. Business advisors can help you with strategy formulation, financial planning and implementation, and business growth. They also help with other business activities, such as payroll processing services, so you will not have to put your efforts into outsourcing payroll to some other firm. Depending on the level of services provided, you can also consider hiring business advisory services for a long-term relationship. ![]() Accounting software has become a crucial component of business functioning today. It enhances the efficiency and speed of accounting operations and streamlines the activities. In the current competitive world, numerous accounting software has gained popularity. However, the strongest in the competition are Xero and QuickBooks accounting software. Both the software facilitates automation for small and medium businesses by making it affordable and accessible. These tools run on the cloud, meaning users can operate, edit, and update from anywhere, anytime. They offer a crystal-clear view and real-time visibility into the financial performance and position of the firm. Since QuickBooks and Xero accounting software has a distinct place in the business world, let us know what differs them from one another: Suitability Xero accounting solution is suitable for businesses that require more than five users and self-employed individuals that do not need to send more than twenty invoices annually. Thus, Xero accounting software caters well to small-sized firms and freelancers with minimal requirements. However, it also helps the growing and established businesses at high prices. On the other hand, QuickBooks accounting software is better for firms that want growth and robust reporting capabilities. Maximum user number Xero accounting software involves an unlimited number of maximum users. Several people can simultaneously access, change, edit, or modify files. In contrast, QuickBooks has varied limits for each plan. For instance, the basic plan contains access to one user and two accounting firms, and the advanced has twenty-five users and three accounting firms limit. Two more categories fall between these two extremes. Sharing files with accountants Xero accounting software allows inviting accountants through e-mail and assigning them advisor permissions. It offers a good level accountant sharing feature. On the opposite spectrum, QuickBooks stands tall with an excellent accountant-sharing system by e-mailing them a link to access the QuickBooks accounts. Scalability Scalability refers to supporting a firm's growing transactions by accommodating them without additional expenses. Xero offers a growing plan to its subscribers to expand and choose the Established plan down the road. Similarly, QuickBooks provides advanced and customized reporting capabilities in its high-tiered plans. They can be a massive asset in running complicated reports in the future. Ease of use and learning curve Both QuickBooks bookkeeping services and Xero have an easy-to-use interface. Users do not have to face hassles in utilizing the features. However, QuickBooks's learning curve is a bit broader than Xero's. ![]() Accounts payable have been a critical part of every business dealing in credit. No matter what happens, firms cannot afford not to make timely payments to respective parties. Accounts payable constitute a significant part of a firm's working capital. Various activities come together to form accounts payable services. It involves managing invoices, approving them, and sending them for payment to authorized personnel. While some firms rely on manual practices, others have turned towards accounting software options like Xero accounting. Accounting software for this activity incorporates efficiency and speed to otherwise cumbersome tasks. What Do Accounts Payable Management Entail? Accounts payable involve honoring dues for credit purchases to third-party vendors. Since accounts payable services are a part of short-term liabilities in the balance sheet, it comprises short-term financing for inventory purchases, accrued expenses, and other routine operations. Firms need to optimize their payables performance by seeking appropriate trade credit lines, acquiring favorable purchase terms, and managing the purchase time and cash flow. The significance of accounts payable management requires companies to adopt a strategic approach. There should be a collaboration between the procurement department and the senior management to form a working capital culture across the organization. Some general strategies available for firms include: Having Strong Governance Policies: Businesses must formulate and implement robust governance policies across the department. With the help of software such as Xero accounting, firms can ensure strengthened internal controls and reduced manual errors around the entire payables process. These policies and practices involve:
Managing Workflows: A proper management workflow enables businesses to detect problems quickly and increase the payables process' efficiency. Firms can eliminate the bottlenecks interfering with optimal performance and streamline activities for better liquidity management. The purchasing approval authority differs in price and quantity and must get set accordingly. Optimization Of the Payables Process: Businesses can strengthen their working capital significantly by optimizing various processes. It includes having a detailed procedure for selecting vendors. Priorities must be clear and allow favorable pricing to the firm. Next, the data setup process on the accounting software must go seamlessly with expert assistance. Moreover, firms must review their contract, payment, procurement, invoicing, and related accounts payable activities. ![]() Like any other type of business, law firms also need to maintain the business’s bookkeeping and accounting function. Good bookkeeping helps make sound financial decisions for better growth and market reputation. For accurate bookkeeping and accounting, a law firm can outsource the process to a third party or use accounting software like QuickBooks bookkeeping services with the help of an in-house team. Outsourcing can be done onshore or offshore. However, before outsourcing the bookkeeping services, there are some important factors to be considered for best results. Let us find out what those factors are. Factors To Consider Before Outsourcing Bookkeeping The bookkeeping for law firms is done by keeping in mind the industry-specific requirements for financial statements and reports preparation while focusing on legal and ABA compliance. An outsourcing service provider who works exclusively for law firms follows the legal industry-specific standards and regulations. Cost Savings The first and probably the essential thing to consider is whether the firm will have the benefit of cost-saving or not. The business must determine if it will save capital costs by outsourcing or having an in-house team. Outsourcing usually seems expensive initially, but it helps keep costs in the long run. Resources And Technology Used Service providers use accounting software like FreshBooks, Zoho, QuickBooks bookkeeping services, etc. Make sure to learn the basics of the software used. Also, confirm the number and experience of the resources involved in the team to handle the business’s bookkeeping process. Pricing Once the resources are confirmed, a business must consider the price that the outsourcing service provider asks for the work. The price must be in sync with the market standards and within the firm’s budget. The pricing must also be reasonable for the amount of work under the business’s bookkeeping. Turnaround Time Ask and check about the turnaround time of the outsourcing service provider with their previous clients. Also, do a background check regarding their team, work, qualifications, market reputation, etc., to ensure the business gets the best suitable service provider. Minimum Supervision Requirement The outsourcing service provider must be experienced enough to require minimum supervision so that the business doesn’t have to engage extra resources and costs. Reliability It is crucial that the outsourcing partner a business chooses is reliable and can be trusted with the business’s financial data. Previous clients can confirm their reliability. Strong Communication Channel Make sure to have a strong and direct communication channel. An outsourcing service provider must have a proper communication system to ensure the business has real-time information about the bookkeeping process. Businesses should also have access to the software used by the service provider. Legal Agreement One other crucial thing to ensure before outsourcing is to get a legal agreement with the service provider chosen. Be sure to mention every necessary detail related to the bookkeeping process, confidentiality, etc., in the agreement. ![]() The real estate businesses deal in buying, selling, leasing, and constructing buildings, properties, land, etc. Real estate bookkeeping aims to prepare such an industry's financial records to offer proper insights and back up their decision-making skills. Although real estate investors might not possess accounting and bookkeeping knowledge, it is critical for survival. The financial documents allow them to know their property profits, real-time income, expense, deductions tracking, etc. A company does not become successful only by connecting, selling, and closing sales. It also requires high administrative knowledge that can make or break the firm's success. Since real estate bookkeeping and accounting hold considerable significance for a firm, let us assess the basic steps in setting up this department: Selecting An Accounting Method Businesses must prepare their accounts on one of the two accounting methods: cash and accrual. Under the cash method, the incomes, expenses, and transactions get recorded only when the flow of money has occurred. On the other hand, the accrual accounting method recognizes transactions as soon as they incur/ earn. Both these methods have pros and cons, which businesses must weigh and adapt according to their needs. Separate Business and Personal Funds The real estate bookkeeping practices must differentiate between personal and business funds. It involves creating separate bank accounts to cater to personal and business transactions. The distinction is essential to maintaining up-to-date and accurate books of accounts. Mixing the two can result in confusion and misunderstanding for the accountant, who takes considerable time preparing books. Moreover, it will become challenging to receive a clear accounting picture. Generating A Chart of Accounts A chart of accounts separates income from expenses. It provides categories of assets, liabilities, equity, revenue, and costs. Every category contains different accounts indicating various transactions. For instance, a landlord may have different rental accounts like rent revenue, late fees, other rent, etc. It can be custom-made based on the company's needs, property type, etc. Many accounting outsourcing companies prepare the chart of accounts following Schedule E (Form 1040). Tracking And Itemizing Incomes and Expenses The transactions and money flow from a specific property must get categorized and posted to the related account. Many accounting software for the real estate industry do this function automatically. The transaction details must enter the records for accurate and complete processing. Thus, real estate businesses must consider these points to create and maintain their accounts and benefit from the vast data. ![]() The accounts payable process of a company helps maintain strong and healthy customer relations. Traditional AP processing involved using manual methods and paper-reliance for executing every function. These systems are not efficient in current times as competition has risen and speed and efficiency have become critical. Manual AP processing increases the costs and errors, which take time to identify and correct. Automation through accounts payable outsourcing services aims to optimize the function, reduce costs, increase speed, and save time and resources. Today, the accounts payable software provides several features and tools that add value to the entire workflow. Vendor portals are one of the most unique and beneficial value-additions to accounts payable software. The vendor self-service portals provide a dedicated and integrated online platform. Businesses and vendors work on this platform together, with more control to the suppliers to view, edit, add, or subtract specific information. Usually, firms use this portal for vendors to enter their primary details like names and addresses. Moreover, they enhance communication with suppliers by updating them about the payment status on the software, resolving issues and discrepancies by managing, submitting necessary documents, and making payments. Data entry outsourcing companies benefit from the integrations significantly. The vendor self-service portals provide the following merits to businesses: Automated supplier invitations Whenever businesses add a new supplier to the list, they need not intimate or remind the firm to register on the self-service portal. The portal will handle this function automatically. Facilitating virtual card payments With every process adopting automation, businesses must also choose online payment methods for faster, more secure, and efficient processing. One such way includes using virtual cards. These make payments quick and provide cashback and rebates. Analytics through dashboards and reports The self-service vendor portal provides businesses with supplier analytics that track crucial AP metrics. They simplify and automate vendor interactions. Simplified supplier management Managing suppliers has become pretty seamless with vendor self-service portals. The real-time visibility into invoice and payment status reduces misunderstanding, confusion, or disputes. The accounts payable outsourcing services will have lesser emails and calls and more time for AP staff to focus on core activities. Security The self-service vendor portal enhances security and makes tracking easy and payments up-to-date. Environmental sustainability Automating various processes in communicating with vendors reduces the reliance on paper and energy spending. It benefits the environment and contributes to its sustainability. ![]() Managing finances for a business is challenging. However, the professionals who gain years of knowledge, experience, and expertise in their respective fields simplify it. Financial management of a business begins with maintaining complete, accurate, and up-to-date books (bookkeeping). Bookkeeping services small business identifies, classifies, and records monetary transactions in the appropriate books, whereas accounting deals with summarizing, interpreting, and analyzing the prepared financial records. It also involves preparing and filing tax returns and amounts. However, the financial management process does not stop with accounting and bookkeeping. A business needs to know what the future holds for them financially. Also, it must strategize to use finances efficiently and effectively. Guiding in the right direction becomes the responsibility of the Chief Financial Officer. Although both the accountant and CFO manage specific aspects of finance, businesses sometimes rely on one more than the other for all the activities. Many CFOs come from accounting backgrounds, and thus, they do not have much problem managing a firm's accounts. Similarly, accountants informally guide businesses in the long run financial direction. But, CFOs and accountants have different roles for the company and cannot replace each other. The outsourced CFO services include the following activities:
On the other hand, bookkeeping services for small business cover the following tasks:
Other distinguishing points for CFO and accountant include: Past vs. future: While an accountant focuses on previous records, preparing reports for the financial transactions in the year, balancing books, filing taxes, etc., a CFO considers the future. CFOs create strategies, plans, and pathways to achieve the goals. It means that the roles of an accountant and CFO don't conflict but complement each other. Pre vs. post-tax presence: A business requires an accountant to prepare the financial statements accordingly during and before the tax season. The accountant knows which rules apply to a firm, how to calculate taxes, and when to file the returns. On the other hand, a CFO comes into the scene after the tax season is over to recommend the business the direction it should choose. ![]() A business can be successful only when it is sure of the accuracy of its financial statements. Any error, inconsistency, or compromised quality can affect the firm adversely. While preparing the books and accounts, the bookkeeping and accounting service providers match internal statements with external sources to identify discrepancies. The reconciliation process is an in-depth comparison occurring periodically using business bookkeeping software (usually a month) to keep the records up-to-date and correct. After reconciliation and financial reporting services, it comes under the IRS' radar when the business files its taxes. If the IRS finds anything wrong with the tax payments or files, they can order an audit. A financial audit involves verifying the accuracy of statements prepared and information filed with the IRS. It ensures credibility to the stakeholders. Although the process seems daunting, businesses need to comply appropriately to ensure no problems. The following five steps can help ease the financial statement audit process for the firms: Implement excellent practices throughout the period Firms must have good accounting and bookkeeping practices to avoid errors, manipulations, fraud, or other potential problems. Businesses can minimize the costs and time associated with constant reviewing and correcting. Periodic reconciliation will lead to no delays in preparing financial statements at the year-end. Moreover, good bookkeeping promotes systematic structure and organization. There is clear accountability and responsibility. Firms can document and store their income and expense information in proper places to find them when needed. Virtual bookkeeping services play a critical role in saving information electronically and avoiding later losses or wear and tear. Understand your financial situation As a business owner, no matter how extensive your financials are, you must know and understand them properly. The auditor will also face problems if you do not see the meaning and reason behind specific activities recorded in the books. Also, when they ask you about the same, you won't have adequate replies. Thus, the financial information must make sense to you before auditing takes place. Put your paperwork together It can become highly challenging to review a company's position with highly messy and chaotic paperwork. Businesses need to store their documents and other essential records properly, preferably in business bookkeeping software, to ensure they do not miss or tear them. However, the records that do not have a place on software must be stored in proper files to prevent mis happenings, stealing, manipulations, etc. |
AuthorWhiz Consulting provides bookkeeping & accounting services for UK-based businesses. We provide outsourced accounting, bookkeeping, payroll and taxation services to Birmingham, London, Manchester, or other parts of the United Kingdom. We provide services to all businesses irrespective of the scale of operation and industries like real estate, hospitality, healthcare, e-commerce and so forth. We have accounting solutions for every business, with the experience and knowledge of all the popular accounting tools. We will assist your businesses in managing cash flows, financial statements, bank & day to day transactions record-keeping, and monitoring the overall expenses made by the business. We will ensure your books are kept neat and reconciled throughout the year. We provide our services at a competitive cost as compared to hiring local or in-house bookkeepers and accountants. |