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
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
Switching from spreadsheets to accounting software is a big deal and you want to first and foremost ensure you are getting the software that fits your BUSINESS needs. With cloud accounting software becoming increasingly more popular, it gives you another option to consider when switching to a computerized accounting software. Let’s discuss the options available. Intuit Products – QuickBooks Desktop and QuickBooks Online Here at AMH, we are AVID fans of QuickBooks Desktop. It is, by far, the most robust accounting software available to small business owners. It handles payroll, inventory, cost accounting, property management, and much more. To make this more of a better option, your desktop file can be hosted online, giving you anywhere access to your accounting information as long as you have secure internet connection (recommended). QuickBooks Online is a good option for those just starting out and want to keep good records. With its “scalable” options it is a good fit for many. Like its desktop counterpart, QuickBooks Online can handle payroll, inventory, and cost accounting. It can handle all of this for a business with multiple locations. This is especially good for construction business or contractors who have jobs in multiple locations. For more
Depending upon your entity type and industry for your business, setting up the books for bookkeeping can be quite simple. For the purpose of this post I am going to discuss the two setups I am most familiar with. The first is based upon the IRS Form Schedule C. Page one of the form handles the income and expenses of your business to arrive and the profit and loss. The business expense categories listed are all that is needed in your accounting systems’ Chart of Accounts. Having this form handy keeps the Chart of Accounts clean and streamlined. You can always add sub-accounts for the things you want broken down for reports to be used internally. Another form I like to use as a reference is the IRS Form Schedule E. I love this form because my specialty is rental property accounting and it helps keep my clients Chart of Accounts clean as well. Page one of this particular form deals with the income from rent or royalties and the other page deals with other kinds of passive income such as income from Partnerships or S Corps. For this purpose, only the rents concern us. When you have property that you allow
Congratulations on starting your new business venture! It is challenging and rewarding and no day is the same. The key to making it all work is to automate and delegate when and where you can. One of the best things to both automate AND delegate is your bookkeeping. Starting your business with good bookkeeping practices early, will take a large load off your plate down the road. It is easier to catch mistakes in the beginning than it is to catch them in the end. These mistakes can be extremely costly and come with other consequences such as jail time or seized property if not caught and corrected in time. Do not be worried about having the money to pay for a professional regularly. My recommendation is to find a professional that understands your industry first. Be intentional. The goal is to find YOUR bookkeeper/accountant. Explain to them what you are looking for and what you need starting out and sign on to work with them. For example: You are starting an Etsy store and you have some inventory just recently purchased for the products you make. What you need: A bookkeeper/accountant who understands e-commerce, particularly the Etsy space and
As a bookkeeper, one common issue that I see with small business owners is the commingling of personal and business funds. It usually begins as a small purchase being made for the business accidentally with personal funds or vice versa. This is not a big deal if it is a one-time thing. When it becomes common place, larger issues can arise and the following questions need to be answered: For those personal purchases made using the business funds, are they being paid back to the business? Is the business paying the owner back for expenses made using personal funds? Are those business expenses that were made via personal funds being treated as an equity investment instead? Are the personal expenses paid for by business funds being treated as an owner draw? How will they affect the business and personal tax deductions? Aside from answering the above questions, deciphering what was a personal expense and what was a business expense so that your business receives optimal tax deductions and credits is CRITICAL. The time it takes your CPA or EA to do this can cost you thousands. In situations like these, having a bookkeeper handle your day to day financial data
One of the most recurring themes I have noticed as a bookkeeper is most business owners have not reconciled their bank or credit card accounts. I think this is due to the fact that some of them may not understand how powerful a simple task like this is AND how much information it can tell them about their businesses. Here are 7 reasons why this task is so crucial to the overall financial health of your business. Errors – Performing a reconciliation of your bank accounts every month can help locate errors made by you or the bank. Not to mention can catch illicit transfers performed within your accounts. This is especially essential if you have set up bank feeds in your accounting software. Prevention – Unauthorized charges by the bank, check fraud, and other serious issues can be identified AND corrected. Miscellaneous charges and large, out of the ordinary purchases are some prime examples. Powerful Decision Making – When you know where your money is coming from and where it is going, when you know all transactions are accurate and that balances are correct, you as the owner can make some very powerful decisions in regards to your company.