How to Find the Right Bookkeeper

Whether you own a small business or a major corporation, you are going to need a bookkeeper to keep your records and your finances straight. While you might think that all you have to do is find someone with experience at bookkeeping, it’s actually a little more complicated than that. Finding the right bookkeeper takes work and know-how when it comes to what to look for.

For starters, you definitely want to hire someone who is a good communicator. You need a bookkeeper who can speak to you in a way you can understand without talking down to you. Likewise, the bookkeeper you hire should be able to understand your needs and to meet them with ease.

You’ll also need a bookkeeper who has all of the necessary skills to do the job. You want to hire one person to take care of all of your financial and record-keeping needs, so it makes sense that you would want to hire someone who can handle a wide range of tasks. At a bare minimum, your bookkeeper should be able to:

l  Reconcile bank statements                            

l  Send and track invoices

l  Take payments

l  Process payroll

l  Manage accounts receivable and accounts payable listings

If you can keep these things in mind as you search for a bookkeeper and commit yourself to being selective and discerning, there’s no reason you can’t hire a great bookkeeper.

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Businesses and Quickbooks

If you run a small business, you might think you’ve got your businesses finances perfectly organized and together. After all, when you’re armed with Quickbooks and a good financial advisor, what more could you need?

In truth, however, small businesses often make small mistakes that can affect them big financially. One such mistake, for example, is not fully separating business funds and personal funds. A business credit card should never be used to pay for personal expenses and vice versa. If you’re guilty of that offense, stop it now and talk to an accountant to find ways to fully separate your finances.  

Also, make sure you’re staying on top of invoicing. You need to know how many accounts are unpaid and how much you’re owed, as well as how many accounts are paid and how much you’ve made. Improper record keeping, often a result of putting off record keeping until later, can cause major problems and discrepancies when tax time rolls around.

You really shouldn’t be running a business without a professional accountant. And, if you’re running into these or similar problems, it’s probably because you don’t have the right accountant (or any accountant!) on your side. Remedy that problem, and you should save yourself a world of trouble.

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Beyond Quickbooks

Most people think Quickbooks is the only financial technology they need. In reality, though, there are a lot of great programs out there that can be used in conjunction with Quickbooks or on their own.

Peachtree, for example, is a very popular name in the accounting software world. Its features include:

l  Inventory tracking

l  People management

l  Item management

l  Vertical solutions

Another popular option is Freshbooks, which is used online. Users pay a small monthly fee for streamlined processes that make invoicing and sending estimates a whole lot simpler.

No matter what technology you use to help you with your business or personal finances, remember that software can do everything on its own. It needs reliable, educated people- preferably professionals - backing it.

So, instead of just relying on software to do all the hard work for you, also consider hiring a professional to help you get the most out of that software. There are many great accountants who are eager to assist you.

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Two Easy Tips for Better Bookkeeping

2 Easy Tips for Better Bookkeeping

Proper bookkeeping is necessary for all businesses to thrive. Every business could probably stand to get a little better at bookkeeping, though, and these surefire tips can help make that happen: 

1. Plan in Advance: Is your business in need of expensive new office        equipment? Or maybe you’d like to open up a new location in the next year or so.        When you have known big expenses on the horizon, start planning for them early.      Try putting them on your calendar at least six months in advance, even if it   means holding off on actually going through with a purchase or other move.            When you know a big cost is coming your way, you’ll keep it in mind constantly   and will be more likely to adjust spending accordingly.

2. Coordinate Your Bank Statement: Did you know that some banks will actually allow you to customize the cut-off date for your statement cycle? If your bank offers this option, take advantage of it. If you can match your statement date up to the schedule all your other finances are running on, you’ll find it much easier to keep track of how much you’re spending and what you’re truly netting.

These two simple tips can make a world of difference. For other useful tips, contact a local accounting firm.

Avoiding an Audit

Ah, the dreaded tax audit. There are two types of people in the world as it relates to this sensitive subject. 

First, you’ve got your people who will have to go through the horror and worry of an audit. Second, you’ve got your people who never will. Everyone wants to be in that second group, but getting there isn’t easy. However, there are a few things you can do to greatly increase your chances of being in the “good group.”

For starters, report all of your income, every last bit. Cutting corners is a surefire way to end up in deep trouble. Another thing you’ll always want to do is to ask questions as they arise! Never just make a “best guess” and hope you did the right thing. Know for sure; taxes are not something you should take chances with, since incorrect filing can cause you to incur some serious penalties and perhaps face a tax audit.

The absolute best way to avoid an audit and to avoid error is to let someone else handle your taxes—someone who knows the tax business inside and out. You can find that person at Susan S. Lewis Ltd. of Naperville.

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