Let me start with an apology. I am sorry I didn’t post last week. I want to jump right into it because with all the talk about COVID-19 and employers moving to a virtual working environment, this post is NECESSARY. By now employees are being clocked via badges issued so that when they scan it to enter the building, they are officially “on the clock”. With the move to remote offices and virtual working environments, this is not happening. I DO have a solution. Tsheets by Intuit is your time tracking solution both remotely and in-house. It handles it all! With its geo-location tagging, you, business owner or HR Director, can see where an employee is when they clock on. From the admin screen you can get a quick glimpse of who is currently working, who is on break, track their paid and unpaid leave hours, approve shift changes and time off requests. Employees can clock in from their phones via the smartphone app, the website, or using a tablet set up as a kiosk. This is great for in house because that kiosk can be set to snap a photo at clock in so there will be no more
Tracking your expenses sounds easy, right? We all know that isn’t the case. It can be quite time consuming especially if using spreadsheets. If you are a high volume transaction business, finding the time to input that data can prove to be quite difficult and let’s face it, that task can simply get put off for MONTHS is there is too much to be done. I want to talk about a couple of automated methods of tracking your expenses that, once setup, require nothing more than uploading a receipt. First up: Receipt Bank Optimized for web-based accounting platforms, Receipt Bank allows you to take a picture of, store, and sort your receipts for ease of use for you and your accountant or bookkeeper. There is also a mobile app, making it much easier to snap a photo of the paper receipt and upload it to you Receipt Bank folder before it gets lost or damaged so bad it can’t be read. For a demo of Receipt Bank, you can click the name above this paragraph. Next: Expensify Another optimized for web-based accounting platforms, Expensify boasts itself as a simple method of tracking expenses across multiple accounts; automating the entire process
For small businesses, automation is a MAJOR key to succeeding. When you have to do everything on your own, having some powerful tools in your tech stack (software and apps used to run your business) to alleviate a lot of the data entry can be LIFE CHANGING. One of the tools that should be in EVERY small business’ tech stack is HubDoc. The power of HubDoc comes from the over 700 suppliers (banks, credit card, and utility companies) you can import documents from and the way you can upload documents like receipts. You can scan them, take a photo with your smartphone, or email them. In addition to where you can get your info from and how you can upload that info to HubDoc, are the ways your HubDoc account can be maintained. Self-Managed is just as is it sounds. You, business owner, will manage your account including adding your own bank and utility accounts that will fetch statements and invoices. You must invite your accountant/bookkeeper to your HubDoc account in order for them to have access to the documents and be able to sync information between your cloud accounting software and your HubDoc account. The self-managed option is best
Discrepancies occur often with bookkeeping and one of the most popular I have seen is during the reconciliation with 3rd party payments. There is usually a 1-3 day turnaround before funds paid by a 3rd party are deposited into a business’ checking account. For example: Company A performs Jobs for Companies 1,2,and 3, respectfully, on 3/30/XX. March 30 is on a Monday. Companies 1 and 2 pay via check and company 3 pays via credit card. Checks are recorded and deposited Monday, March 30 at 4:30; the credit card payment is recorded on March 30. Reconciliation is performed April 1 including the credit card payment which has not cleared the bank at the time the reconciliation is completed. This results in a discrepancy in your bank reconciliation which will continue to affect all other reconciliations in the amount of the credit card payment. It is important that you verify when deposits hit your bank by logging into the business’ operating bank account and matching those deposits with payment received via 3rd party merchants that processes your credit card transactions. Doing this before you reconcile will save you or your bookkeeper countless hours in unreconciling and re-reconciling to correct the issue.
In part two of the Efficiency series, I am going to discuss rent payments; specifically the most efficient way to receive payments that can “kill two birds with one stone” for your rental business. First let’s discuss the most common ways rent is paid. Cash – This method is a bit antiquated but still acceptable. Lends itself to being spent before being deposited into the rental checking account and understates the income received. Aside from that, proper handling isn’t always completed. When receiving cash payments for rent, AMH recommends that a receipt, signed by the property manager or landlord, be given to the tenant, that the payment gets recorded into the accounting system, and a deposit slip is immediately made for that payment listing the address and tenant the payment came from. Multiple cash payments can go on one deposit slip. Check – Another acceptable and somewhat antiquated method of payment. There are benefits for the tenant in being able to pay rent via check not for the landlord or property manager. For tenants, particularly if they are using a checkbook with the carbon copy feature, have written proof that a check was written for their rent. For the landlord