09 SEP How Bookkeeping Is Easier Than You Think?
Just starting a business? It is possible that accounting may seem to you the worst part of the puzzle. Do not despair! We will not leave you alone with her and will solve this problem together.
Bookkeeping requires learning an entirely new language that is unfamiliar to most people. Keeping track of your income and expenses, keeping track of receipts and monitoring your accounts are all part of the job. In the article, we are going to tell you about the importance of competent accounting. You will also find expert advice for the best Audit firms in Dubai and a digest of the best online services.
Why is accounting Crucial to the business?
Setting up an accounting system, like creating a brand, at the early stage of business development is a “must-have” for each company. No wonder the prominent management theorist Peter Drucker noted: “You can only manage what can be measured.” A strong financial strategy will help you navigate in material matters, from small expenses to determining the profitability of a business. Accounting also helps:
Maintain order in financial flows and reporting. Accounting not only gives you the tools you need to accurately track income and expenses but also very convenient for managing tax reports. Having set this up once, you don’t have to fuss every time the time comes to file declarations again, and the documents are not ready.
Set realistic goals. Reliable accounting helps keep a growing business under budget control. It is necessary to set realistic goals and receive growth, not loss. Get a better idea of what income you will need to take your company to the next level.
Reduce costs. Valid credentials are critical to making responsible business decisions. It will help to recognize and reduce unnecessary expenses. And regularly analyzing your financial statements, you can keep your attention on the part of the business that has the highest profitability.
Three ways to bookkeeping for small business owners
You will ensure the prosperity of your business and an increase in cash flow by taking care at the start of a clear strategy, in particular in accounting. Here are 3 approaches to bookkeeping for small business owners.
1. Do accounting yourself:
Most often, at the start of their business, the owners independently conduct accounting. In addition to the fact that economically, this is the most profitable option, it also allows you to always keep abreast of all financial processes and the state of affairs.
Accounting is, of course, not rocket science, but some knowledge of principles, legislation, and even software is still needed. In addition, the experience is what can best protect against errors and, as a result, from fines. Namely, it is not enough at the beginning. Learning takes time, as well as mastering the skills of mixing all accounting. But it is precise with independent business management that you can quickly make decisions, objectively and adequately evaluating the current state of the business.
2. Hire An Accountant:
From saving time, hiring a full-time accountant is the best option. This specialist already knows and knows everything that you would have to learn. Also, you have the opportunity to choose the person who suits your requirements. And most importantly – you can spend time directly on the tasks of the leader, without spraying on other issues.
But it is worth considering that the services of a good accountant are not cheap, especially for small companies that have just begun their journey. Not to mention the cost of equipment for a separate workplace. Plus, there is a chance to spend quite a lot of time looking for a worthy specialist. For these reasons, many turn to the services of outsourced accountants. It can increase the time spent on resolving issues but reduce the cost of maintaining an employee.
3. Mechanize the Process:
There are many other affordable and scalable option than hiring an accountant or training: automation.
Specialized online accounting services allow small business owners to conduct quality bookkeeping without sacrificing time and additional expenses.
Using the service will cost you much less than hiring an employee to perform the same tasks. For example, the average salary of an accountant for 2018 is 40,000 rubles per month, while the online service is 1,000 to 6,000 rubles. As a bonus, you can choose the service that comes with a certified CPA, backup, and AI verification.
Professionals also say that accounting is vital at any stage of doing business and that it does not tolerate negligence.
Benefits of Online Accounting
A properly selected accounting program can make a considerable contribution to the financial well-being of a business. The online accounting service establishes and maintains stable financial processes, providing unity in tracking indicators, paying bills, and reporting. This will protect your business from many costly and dangerous risks.
Accounting service saves company time and money. Specialists of the Big Bird online accounting system also emphasize the advantages of using automated services: “Performing operations on autopilot will help you save time and reduce costs, because time is, as you know, money. The more time you spend doing operations manually, the less time is left to grow your business. Not to mention the fact that when performing daily tasks manually, the probability of an error, which can sometimes be very expensive, is much higher.”
When choosing a suitable accounting service, pay attention to the following questions:
• Ease of use. How easy is the service to use? How much time and resources will you save thanks to him?
• Cost. How much does the service cost and what does it offer?
• Functional. What tools do you need? These can be tools for paying bills, compiling reports on income and expenses, managing bank statements and credit cards, working with payroll, etc.