With so many complex areas of running a business, many companies are utilising business accounting software in order to make their basic activities run without a hitch. Even in a small-sized business, there tends to be a lot of toil to keep up to date with sales, taxes, wages and profits. This piece analyses some of the best known business accounting software options available.
Quickbooks is perhaps one of the most recognisable brands in business accounting software – primarily focussed on accountancy issues. Created by Tony Scott and Tom Proulx in the state of California in 1983, the name has swollen to become of the most utilised examples of business software. It has been especially popular among the smaller business owners – as it does not need any sort of training to be used. This ease of use was not an aspect that accountants always appreciated however (at least in early versions) as it did not comply with accountancy conventions. Later versions sought to address this issue.
SAGE is one more piece of business accounting software that has become a well known name among people in many firms. This UK-based developer began life in Newcastle Upon Tyne. With a income of 166 million GBP over the year of 2008, it seems the company is doing very well.
And with more than 14 thousand employees around the globe, the firm has swollen a great deal since its low key beginnings in the year 1981. The firmhas made several acquisitions over recent years, among them Logic Control of Spain, KHK of Germany, Sybel of France, and a great deal of other firms management software firms besides.
Gestix is another business making software for business management requirements. Beginning life in 1986 it has over two decades of experience. It’s variety of software products cover point of sale (POS), inventories, accounts and supplies. Its options are available in 3 versions – Gestix Light, Classic and the most expensive and comprehensive Business version. The firm has large HQs in both Switzerland and Portugal.
One more well known range of business accounting software and management software that a lot of people will be aware of is Microsoft’s Small Business Management package. As a long established brand, many business users choose this name. The software purports to focus on creating stronger customer relationships along with giving company owners a wide ranging view of their firm’s activities. By supplying a great deal of support in terms of financial and customer management, Microsoft has established itself as one of the largest providers of business accounting software options in the world.
There are of course a lot of business accounting software solutions for firm’s top dogs to choose from, and it is definitely worth weighing up the various options when thinking about buying a package. Issues of price and reliability are all problems worth thinking about and there are a great deal of forums that are dedicated to pin pointing the ideal kind of software for your firm.
By selecting a lesser known software package, you may get a better price – although it is worth considering that the large names in this sector are such for a good reason, and will probably have a high level of technical support to hand – crucial when learning a new piece of software.
By: Gino Hitshopi
The Easy Way to Set Up a Bookkeeping System
February 2nd, 2010 by admin No comments »
One of the most feared as well as least understood systems in a business is the system of bookkeeping or accounting. The reason for this could be that most people are apprehensive of the work involved in setting up such a system and the monotony of plugging in daily inputs to keep the system alive.
But if you look at it closely, there is nothing too complicated about bookkeeping. It is just like maintaining a personal diary or your check book. To put it simply, it is nothing more than keeping a tab on your income and expenditure on a daily basis.
The first step to get going is to open a business account for your new business enterprise. This is a simple procedure involving your requesting the new accounts teller at your local bank for a new business account and sent the new account registration fee to the relevant commissioner. You are ready with your new business account with freshly imprinted checks.
The next step is to pick up a note book with loose leaves and a supply of paper. It is also a good idea to use index tabs which separate the months or even to create separate accountings for all the items you sell.
What you do at the end of the month is to transfer this daily information to one of the cheap bookkeeping registers from where your tax consultant or accountant can work. These professionals usually do not work with your daily register but would rather take information from the official bookkeeping registers. They will not even transfer the information on your behalf. If you ask them to, then charge a hefty fee to do this. It is truly no big deal, and spending a few minutes on the last day of the month, you could transfer the details yourself. When you are preparing to pay your tax returns, simply hand over this bookkeeping register to whoever is compiling your tax liabilities and you are free.
The bookkeeping register need not be anything complicated, the simple “Economic Register, Form RL-17″ columnar note book which are commonly used can suffice your needs. Such registers are available in a variety of styles and sizes from Economic Systems-PO Box 11413-Tacoma, WA 98411. You essentially need a notebook with columns demarcated. Put a title on top of each column to represent the money transactions related to that product or services as specified by the column. At the end of the month simply add up whatever figures appear in the column and you will know in a moment how much money you made against each of the products or services that you are dong business with.
After the date column record the expenses or the money spent. Put a title on top of each column and insert the figures which are relevant to that head. At the end of the month, simply add up the figures and you will know your total monthly expenditure. When your expenses are more than your earnings, obviously you are running at a loss. The vice versa is true to know how much profits you have made in a month.
The two important points to remember is that bookkeeping or accounting can be kept simple and uncomplicated when all you do is to go on recording your business activities and keep the book updated.
By: Guy Starbuck
Four Easy First Steps to Small Business Accounting
January 30th, 2010 by admin No comments »
When starting a new business one of the most daunting tasks the entrepreneur will face is that of accounting. Many small business owners neglect this important area of business, particularly during start up. Making this mistake can be fatal and many companies fail because of a lack of knowledge of the business’ finances. Keeping good records and having good accounting practices from day one is paramount. There are many simple, yet effective techniques that can help the small business owner get their finances on track.
The first, and most important thing, you can do is to set your business up as a legal entity separate from yourself. This means setting up some type of corporation, or LLC. This simple step is overlooked by too many entrepreneurs. Keeping your personal and business finances and taxes separate is the main reason for this, but there are other benefits as well. Which of the different entities is right for you will depend on many factors of your business, and you should consult a CPA and an attorney to help you with the process.
Once you have decided on which entity you will use and have followed your state’s guidelines to set it up you will need to file form SS-4 with the IRS to obtain your EIN, which will be your business’ federal tax ID number. As soon as you have set up your business entity your next step will be to visit your bank (be sure to check out the competition’s offers as well) to open your business checking account. Most banks offer free small business checking accounts with no minimum balances. If the bank is going to charge you for small business checking, or a debit card, find another bank.
When choosing a bank be sure to ask the sales representative if the statements are cut on the last business day of the month, so that each statement represents an individual month. If the statement is cut on a floating 30 cycle, or if the cycle begins on the day of the month on which you opened the account find another bank. This simple thing can save hours when settling your account each month.
It is also a smart idea to have multiple accounts dedicated to different portions of your business as well. This may include a payroll account, an account that receives payment deposits and an operating account to name a few. If the bank only allows one free account per business find another bank. You may find that you need multiple accounts and keeping up with them all is starting to get confusing. If this happens ask your banker about the Cash Management services they offer. These services will normally include fees, but can help save you time, energy and headaches.
Once you have your new business set up and you are starting to see some cash flow you must make sure to keep your business and personal finances completely separated. This means that only revenue from the business should be going through the business checking accounts, and more importantly that no personal purchases be made through the business.
It is crucial that you take a salary from your business, rather than spending the business’ money on yourself. There are several different ways to take a salary including taking a fixed amount and/or a percentage amount based on the business’ performance.
My last point is also on the list of things often overlooked by the small business owner. Make sure you hire a bookkeeper. This point bears repeating – Make sure that you hire a bookkeeper. Even if your business is small it will be a tremendous benefit to hire someone to keep the books. Most new businesses fail to do this because they are trying to save money, but the fact of the matter is that you can get a bookkeeper for around $25 per hour depending on where you do business. Your time can be better spent on other aspects of the business that are your specialty and others can’t do. Make sure you are leveraging your time properly. There are thousands of bookkeepers out there but only one you! These types of services will usually save you a lot of money in the long run.
These are just a few points that all new business owners should make sure to focus on during start up. This was by no means an exhaustive list of accounting procedures, but only a few of the most important first steps. Finance and accounting are some of the most important aspects of business, but are so often overlooked by the new business owner.
By: Danielle Niesz