Behind every money paid or received lies a challenge in accounting. As your business grows and the number of transactions increases, accounting challenges get harder to pin down. They increase and become more complex.
As a busy ecommerce business owner, you're often out and about doing important things to generate more profit. Unfortunately, that means less time to sit down and look at the challenges this growth entails, especially in your business's accounting and finance aspects.
Let Unloop give you a quick rundown on the potential challenges your ecommerce business can is facing to help you spot them. In most cases, these challenges fall under five areas.
Bookkeeping is the cornerstone of all accounting activities. Doing it correctly is a must to set right whatever follows, be it financial reporting, taxes, inventory management, or payroll. But, of course, it's not without challenges, and here are some common ones.
One bookkeeping challenge starts even before you put numbers down-that's recordkeeping. Unfortunately, many small business owners are too busy to store business transaction files. As a result, they end up not recording them.
In ecommerce accounting, recordkeeping is just as crucial, but it can be challenging to keep up, especially for an online business that grows rapidly.
One reason for inaccurate recording has no reference documents to base transaction amounts on. Other reasons include unnoticed accounting errors such as omissions or transmutations.
While there are measures to ensure every transaction ties up well, an understated or overstated amount can still distort financial reports.
Selecting the appropriate accounting method for your ecommerce business is another challenge. For example, if you're running a business that relies heavily on short-term liabilities, you'll need to switch to accrual accounting as a method of recordkeeping.
But this method is more confusing, so you or your staff often default to the cash method. As a result, this affects your cash flow management and the numbers you see on your financial statements.
Accounts payable management is significant for ecommerce businesses.
This short-term liability is tied to a business's reputation and credit opportunities. So failing to do proper accounting can lead to mistakes that affect your cash flow statement and leave your business cashless.
Payments beyond the due date can result from failure to receive an invoice from the vendor or an invoice processing delay. In effect, for acknowledgment and cash disbursement. In any case, a proper accounts payable system run by an accounting professional will prevent this.
These two things are considered payment errors: wrong amounts or wrong payee.
Payment discrepancies can be a huge challenge for an ecommerce business with a business-to-business (B2B) model. But these payment discrepancies can be eliminated or reduced with good ecommerce accounting software run by professionals.
What makes it hard to fulfill accounts payable obligations is the processing. If an ecommerce business owner does it themselves without the help of accounting software, it can take forever.
To speed things up, they can hire accounting professionals to automate the payment process. This will make the processing fast and the payment timely.
Inventory is also a big chunk of an ecommerce business. In terms of accounting, this affects the cash flow and revenue heavily. That's why managing it is important. It's not an easy task. Whether you're a small or a big ecommerce seller, you'll be faced with these challenges.
An ecommerce seller who's new to a marketplace such as Amazon is more likely to commit this mistake. They'll upload a product and fail to track the product SKUs and their value. As a result, they don't manage inventory at all.
Ecommerce accountants know how to use inventory tracking systems to determine the total value of your inventory. Hiring one will eliminate this challenge.
The way you view your inventory affects how your assets are valued. But, more importantly, using an incorrect method puts your ecommerce business in hot water for possible financial statement embellishment.
Some states may direct ecommerce businesses to use a particular inventory accounting method. The challenge is knowing what it is and implementing such a method when your inventory is already running.
Costing every product in your inventory can be difficult. If you or an untrained staff does it for you, there are bound to be inaccuracies. This will result in an over or understated COGS, affecting the amount on your financial statements.
Avoiding miscalculations when costing inventory needs a professional eye. So it's best to hire an ecommerce accountant to handle this for you.
Perhaps one of the most impacting aspects of ecommerce business is tax. That's because non-compliance can result in penalties or even suspension of business operations.
In this area of accounting for ecommerce, these issues may arise.
An ecommerce platform like Amazon provides the means to collect sales tax from consumers. Then, they give it to you in a lump sum via account deposit. One challenge for Amazon sellers is setting up and using this sales tax collection feature.
Sales tax isn't the only thing you're obligated to collect and remit. For example, when your ecommerce business starts operating, income tax filing becomes one of its obligations.
But income tax filing is challenging because of the intricacies involved. Things like what forms to use or keeping up with new tax laws can be daunting. It may come to a point where you'll need an accounting professional to help you out.
For ecommerce businesses that have employees, payroll is another challenging aspect. To ensure a timely and accurate salary disbursement, business accounting for payroll must be present. The lack of it can lead to the persistence of the following payroll challenges.
A factor that makes payroll a challenge is a lack of an excellent payroll management system. If there's no accounting software, it's difficult to keep track of the exact amount an employee must receive.
Small business accounting software such as QuickBooks or Xero have timesheet tracking that helps associate the employee's working hours to their rates to ensure accurate payroll disbursement.
Like anyone who receives income, employees have to pay their income taxes, too. They rely on accounting documents from your business to file returns correctly. A lack of good business accounting will make this a challenge and result in further back and forth.
In some cases, employers also have to pay their employee's income tax on their behalf. So they need to know laws surrounding income taxes levied on employees.
For every ecommerce business, overpaying or underpaying is an inconvenient possibility. This can be a result of employee misclassification.
Instances of a contractor being classified as a regular employee can result in an inefficient employee record and payroll accounting system. In effect, this can cause employees to be disgruntled.
You can overcome inaccurate salary payments with an excellent collaboration between payroll and accounting professionals.
Reviewing these common challenges can seem daunting if you're an ecommerce seller. That's because, on top of what you're already doing, you may not have enough resources to tackle these problems yourself. So in most cases, they persist.
But you can overcome these challenges and have a better business by just doing these three things.
Accounting challenges need accounting expertise. So it makes sense to hire an accountant as part of your team. Whether on a consultation basis or retainer, they can help identify and correct any accounting challenges in your business.
For your ecommerce business to become efficient in numbers, go cloud-based. Invest in reputable accounting software that makes recording and storing transactions a breeze.
Accounting software such as QuickBooks and Xero are popular among ecommerce accountants and business owners.
Finally, outsource your accounting to a team of experts to take the weight off your shoulders. That way, you or your staff don't have to do it all.
You'll be amazed at how many of these challenges you'll overcome if you get a team of accounting pros. That's because they know how ecommerce businesses work.
Unloop is the kind of ecommerce accounting agency familiar with these challenges. We can identify them and provide assistance to help you solve them.
Our team of accounting professionals is skillful in using QuickBooks and Xero. We’ll help you sort out your bookkeeping records, calculate your COGS, pay your creditors on time, pay your employees timely and accurately, and help you file your taxes correctly.
Talk to us if you’re ready to get an accountant for an ecommerce business, and we'll help your ecommerce business triumph over these common accounting challenges. Call us at 877-421-7270, or check out our ecommerce services now.
Accounting is not for everybody. But if you're a small business owner, one way or another, you have to find a way to face it to keep your business running smoothly. Fortunately, technology brings a huge improvement in accounting.
Accounting software solutions are becoming popular among business owners. They are not only exclusive to medium-sized businesses and large enterprises. There are also suitable accounting software for small businesses.
This blog post will discuss some important questions to ask yourself when looking for the best accounting software for your business.
Choose a small business accounting software with careful consideration. Though accounting software all have basic accounting features, some have more to offer. Before you find the right accounting software for your company, it's likely that you'll try many other programs.
However, keep in mind that changing software often will require exporting huge amounts of data which can be time-consuming. So, to minimize this, your first question should be what problems your accounting software can solve.
If you spend too much time creating invoices, does your accounting software have invoicing features to speed up the process? If you have employees, the time tracking feature will help you monitor them properly to give them the right compensation.
List down the specific troubles your business is having to help look for the features you need in accounting software.
Small business accounting software have different features. So make sure to maximize the features that come with the software when you buy it. But, of course, it's also a waste of money if you won’t use the advanced features of your accounting software.
Here are some accounting software features that may apply to your small business.
Invoicing is an important feature of accounting software. Whether selling products or offering services, sending invoices is crucial to keep track of your accounts receivable. This will enable your clients to see their bills and also help you track late payments.
Furthermore, invoicing tools make invoicing automated. These features also include preloaded templates. This will enable users to duplicate and automatically send recurring invoices.
Integrating your business bank accounts integration is one big benefit to accounting software. This feature will give you real-time updates on all your bank transactions, credit card payments, and cash that goes through your banks.
With this feature, you can have real-time income and expense tracking. Some accounting software even lets you pay your dues directly from the software. Furthermore, check if your accounting software has multi-currency support. This add-on is especially useful if your products are sold worldwide.
Of course, businesses also have to pay bills. Whether it's for suppliers, raw materials, advertising costs, or rent, it's the owner's responsibility to account for the business's payables. You can input your accounts payable in your software, and the system will automatically notify you if you have upcoming dues.
Moreover, the system can show a summary of your accounts payable. From there, you can identify where your resources mainly go and if there are possible solutions to cut them down. This feature will help you manage your budget effectively.
An inventory management feature is a must for small business accounting software when you have a product-based industry. Inventory management effectively gives you an overview of your stocks and supplies. It can give comprehensive data on the stocks that easily run out and those that have a slower turnover.
This will help determine which products you should invest in more. Furthermore, other accounting software have multi-warehouse options. This feature allows you to centralize your inventory management to control your inventory in multiple locations through a single accounting software.
The best small business accounting software includes a payroll feature. Obviously, very small businesses are usually run by one person. But as a business expands, it will need employees. As a business owner, it's your responsibility to handle their payroll.
The payroll features will allow you to manage your employees’ payroll conveniently and error-free. The system can automatically send the payment on the schedule you set. It can also automatically calculate the correct amount your employee will receive. Furthermore, the payroll feature can process necessary deductions such as payroll taxes and other government contributions.
To understand how their business is doing, small business owners need financial reports. Reliable business accounting software should be able to produce financial reports instantly. Accounting is the language of business, and these reports will help you better understand the areas that need improvement.
Some financial reports crucial to small businesses are income statements, balance sheets, monthly, quarterly, and annual reports, and cash flow statements. These reports will help you strategize how to distribute and allocate your funds more effectively.
Some accounting software also include bookkeeping software for small businesses. Knowing where your money is going is crucial. Bookkeeping software keeps you in the loop on where all your resources go. Furthermore, this feature is a more secure way of keeping your books instead of manually writing them down in ledgers.
With a bookkeeping feature, you can easily tell if you are making a profit or not. Some bookkeeping features are also automated. For example, you can simply snap a picture of receipts and transactions, and the system will automatically record it.
Most accounting software is installed or downloaded on personal computers. However, because of its efficiency, online accounting services are gaining more popularity among business owners. Here are some features of online accounting solutions worth considering.
One of the top features of online accounting services or cloud-based software is its easy access. Unlike traditional accounting software that requires a program, you can access online accounting software through a browser. You don't need to install any program on your computer.
You simply need to put in your credentials, and you can use the accounting software anywhere and on any device. This way, you don't need to scramble and find a computer when you need to see data or perform accounting tasks.
Security is one of the top priorities when choosing a small business accounting software. One of the safest solutions for accounting software is a cloud-based solution. Since it does not store files on your computers, there is a lesser chance that unauthorized persons will access your accounting data.
Furthermore, cloud-based software have bank-level security. Only the people who have the credentials can access the data. Cloud software also does regular backups, so you can worry less about your data getting lost.
Growing businesses will need more hands on deck to run smoothly. Reliable accounting software can help manage your workflow. Some cloud-based accounting software allows access for unlimited users, so you can have an accounting team that can work simultaneously. It also makes collaboration easier.
Looking for an accounting solution with responsive customer service is essential, especially when facing technical issues. It's important that you can contact technical support and receive feedback to resolve the issue.
It's normal for small businesses to allocate their resources to immediate business needs. Therefore, getting accounting software for small businesses is oftentimes not a priority. Even if you do set a budget aside, keep in mind that accounting software may vary in price depending on its advanced features.
Only pay the price of the features you will use. That's why it's crucial to know the inclusions of each software. There are also free accounting software you can use. All of your accounting needs can be met by even their most basic features. Utilize free trials to test out several programs and get the best accounting software for your small business specifically.
No one can deny the convenience that accounting software brings. It has inventory tracking, income and expense tracking, bookkeeping, payroll, time tracking, bank account reconciliation, and many more features. In a single software, you can manage the tasks of different people. But again, ask yourself, is it enough?
It will also be handy for growing businesses to get help from an accounting professional. Accounting is broad and covers more than just sales and income. It also involves taxes, budgeting, and business planning. A professional is better suited to handle these areas.
Whether you own multiple businesses or are just starting out, accounting software is a great help in managing your finances and performing other tasks like payroll, bookkeeping, and inventory tracking. We hope this blog helps small business owners like you ask the questions to find the perfect accounting software for your business.
If you're looking for the help of professionals, Unloop offers different services to help you run your business. We have bookkeeping, accounting, forecasting, and tax filing services. Book a call with us today!
Owning a small business online is quite a feat. But it also gives many new online store owners tons of stress and anxiety. In addition to the day-to-day challenges of running a business, you also have to worry about things like cash flow, employee turnover, and regulatory changes.
It's not surprising that countless businesses fail in their first few years. Unfortunately, even with all your effort, you can't guarantee that your accounting knowledge is enough for your business to survive the most crucial years.
But don't let that discourage you—with a little planning and perseverance, you can overcome these ten financial challenges with an accounting service you can rely on the most. Learn and find out the solution today!
The accounting process of an online store is no different from other businesses. It goes through the same long and painstaking steps.
Imagine doing this using manual data entry—this makes it vulnerable to accounting errors. You'll be adding more payroll costs to your expenses and wasting precious work hours on filing and reporting.
But accounting management services can automate every data entry and business processes with just a click. By automating tasks, you can spend more time actually talking to and interacting with customers rather than burning the midnight oil by entering all your transactions.
Thus, hiring accounting experts can help your online business grow more efficiently as it focuses on developing new relationships while eliminating unnecessary manual accounting tasks.
Just as water always flows downhill, cash flows from customers to business owners. For your online business to survive and grow, it needs to have enough cash on hand to cover its expenses. But the first year is when businesses are often operating at a loss.
To maintain positive cash flow, you need to be careful with every cent you put out. That means creating a flexible budget and keeping an eye on it. Why would we suggest a flexible budget?
This budgeting plan is a tool businesses can use to adjust their expenses in response to changes in their sales or production levels. Unlike a static budget, which remains fixed regardless of changes in activity, a flexible budget automatically adjusts to reflect the actual financial health of your business.
A flexible budget is an essential tool for businesses that operate in volatile or uncertain situations such as ecommerce platforms. A dedicated team of accountants can create an ever-changing budget based on your weekly, monthly, and yearly business goals.
Did you forget to manage your vendor invoices? Or perhaps, you can't pay them on time because you don't have money?
Late payments to your supplier or creditors can have a ripple effect that can negatively impact your online store. Not only will you incur late fees and interest charges, but it affects your ability to get loans for future investments. In extreme cases, it can result in asset liquidation or legal action against your business.
With an ecommerce accounting professional at your beck and call, you create an accounts payable system, maintaining a list of all upcoming bills and their due dates. Alternatively, there are a number of accounting software available that can automate the process and help business owners stay on top of their bill payments, linking them to their business bank account. This will guarantee bills are paid on time even if you forget or cannot make the payment themselves.
Businesses' problems with tax preparation aren't entirely about taxes they owe but also about making sure they're complying with tax laws. This financial challenge comes in many forms.
These factors add up to a significant cost for businesses, which can be difficult to justify given the slim margins on which many businesses operate.
However, you can reduce your tax compliance burden by taking advantage of available tax breaks and credits and simplifying your tax return. Thus, working with a qualified tax accountant can also help you ensure that you're compliant while minimizing costs.
As you are pumped to grow your business, it's easy to get caught up in the excitement of managing your inventory. However, this excitement can sometimes blind you to the reality of managing your finances right. As a result, many budding ecommerce owners overspend.
Are you purchasing administration supplies, inventory, or marketing?
An accountant capable of handling inventory management can help you avoid this pitfall by providing solutions for start-up costs. They can also help you create a realistic timeline for when you'll start seeing a return on your investment. With their help, you can avoid overspending and set your business finances for success.
5% of annual revenue is lost to fraud each year, and this can have a devastating impact on your budding business. What type of activities count as accounting crimes?
To help combat this problem, organizations need to be aware of the signs of fraud and have a trusted team to prevent it from occurring. Additionally, it is important to have an accounting system in place for reporting suspected fraud so that it can be investigated promptly.
So, you have the most popular financial software with many features and an easy-to-use dashboard at your disposal. But can you apply its best features and benefits to your small business?
You may have watched tutorials on this technological accounting solution. Still, you're missing out on a wider range of valuable reporting and insights that could help you make better financial decisions.
So what are some of the most powerful features of accounting software?
Like life, everything in business is unexpected. That's because no matter how much experience you have or how well you know your customers or tools, there will always be challenges you don’t anticipate.
Still, if you can conduct proper financial analysis and have cash reserves for any hurdle, you can protect your business during tough times.
Having a dedicated bookkeeper and emergency account will give you peace of mind knowing that you have a safety net to fall back on if needed. The best way to grow your reserve is to make regular deposits into the account, whether from profits or other sources of income. The right accountant can help you set up all these processes on your accounting software.
Always pay your employees accurately and on time. Not only is it the law, but it's also good for morale and can help to prevent financial difficulties for your staff. Unfortunately, you'll probably experience short cash flows that can make it difficult to make timely and full payments to your team. That includes payroll taxes, bonuses, and benefits you promised to offer.
Remember that unpaid employees create an unhappy working environment that can also impact your business operations. Thus, it pays to get a payroll service that automates and adjusts to any period of your starting business.
It's understandable why many business owners worry about their accountants making mistakes. After all, accounting is vital to running a successful ecommerce business.
The good news is you can hire a better accounting team by:
Despite the challenges, small business owners should not lose hope. Many taxes, payroll, and accounting services can help overcome these common issues. Simply talk to a trusted accounting firm, like Unloop.No matter what your accounting challenges are, Unloop's team of ecommerce accountants has the perfect solution for you. Explore our complete range of online accounting services and find the one that fits your small business's needs. With our help, you can overcome any hurdle and get back to growing your small business.
Ecommerce business owners have to be quick-witted to compete. So it's no surprise that you feel compelled to optimize your business operations. One area where you may achieve both of these goals is by automating your accounts payable process. This saves time and costs, while improving accuracy, increasing efficiency, and reducing fraud risk.
In this blog post, we'll discuss AP automation features and share the benefits for your ecommerce accounting systems. Are you ready to take your online business to the next level? Keep reading to find out!
Have you ever used at least one automation solution above? These are the popular enterprise resource planning (ERP) systems for managing finances and resources within ecommerce businesses.
There are many reasons to want your accounts payable automation software to build on your existing ERP systems. Perhaps the most obvious reason is that it reduces the amount of duplicate data entry required. When information is entered into both systems separately, it can create errors.
However, suppose the AP automation software is integrated with the ERP system. In that case, the data will only need to be entered once. Additionally, this integration can help ensure that relevant information is always accessible.
For example, say a customer's account information is stored in the ERP system. In that case, the AP automation software can automatically populate invoices. This can save a significant amount of time and effort and help avoid potential mistakes.
Ultimately, integration between AP automation software and ERP systems can provide many benefits and help to streamline operations.
Your businesses use two main types of invoices daily—purchase order (PO) invoices and non-purchase order (NPO) invoices. Both types of invoices serve the same basic purpose - to request payment for goods or services that have been provided.
But PO invoices are typically used when goods have been purchased from your supplier and include information about the purchase order itself. NPO invoices, on the other hand, are essentially expense invoices in the form of contracted purchases. Thus, they don't have any invoices attached.
Whether it be PO or NPO invoice processing, the three transaction details should match the product description, quantity, price, and other relevant information of your invoice.
Imagine manually entering every financial data of your invoice-related documents to match and verify every transaction for bookkeeping. You'll be stuck with long hours of menial tasks and be vulnerable to payment errors. But with an automated matching feature, it will eliminate manual tasks and remove missed or lost invoices since everything is electronically recorded.
How does the AP approval process work?
The automated approval workflow feature makes the accounts payable process faster, reducing chaos and resolving workflow bottlenecks, especially when these invoices are handed out to the Accounts Payable department. As a result, pending payments will be approved quickly, and you might be eligible for early payment discounts.
GL coding is an essential but often time-consuming process for businesses. You can identify each invoice detail, including but not limited to the purchase price, delivery charges, and taxes. While the process can be tedious, it is important to ensure that all invoices are accurately coded to avoid potential problems.
But what if you can optimize this coding? Thus, optical character recognition, or OCR, is a valuable feature of AP automation.
How does AP OCR work in that it scans your paper invoices, translates every character printed, and uploads your invoices on your AP automation software? OCR can help you maintain a high level of organization by classifying the right GL coding to each necessary data point on your invoices.
This way, your accounts payable processes can save you valuable time and energy for document management, invoice management, and audit trails, allowing you to focus on other aspects of your business.
Despite having the best AP automation software, improving your ERP or accounting system is not enough. The secret to the successful integration of AP automation solutions is choosing the most trusted and experienced accountants in ecommerce business processes—Unloop.
You are more prone to making erroneous payments when you manually input and process invoices. Unloop, together with the accounts payable software, will identify duplicate invoices and enhance your document management system.
Are you still wading in a pile of paper receipts and contracts even though you're running an ecommerce business? Believe it or not, paper invoices still account for most business transactions. This causes online businesses to invest in offices to store their AP paperwork.
But you can finally dispose of your paper transactions completely because Unloop can handle your paper and electronic invoicing from now on.
Thanks to Unloop's know-how in any cloud-based AP automation solution, you won’t have trouble checking your bills payment reconciliation, receipts, and vendor contracts. We'll even help you negotiate discounts with suppliers and automate payments, so you never have to worry about missing a due date again.
ACH payments are still the norm for many businesses. However, this type of payment can take a few days to process. But many accounts payable automation solutions now offer virtual smart cards. Asides from faster payment processing, it also:
If you are not familiar with this new process, Unloop can help you streamline your AP payments. We will ensure your payments are right on time.
Many businesses suffer from this delinquent act in accounting, which occurs when a dishonest person manipulates an invoice to gain financial benefits. Unfortunately, this type of fraud can be difficult to detect, as it often involves small amounts of money slowly funneled out of your business over time.
But Unloop has a reliable invoice approval system that only permits you to approve payments for financial transactions. We don't handle your money. We only manage your AP workflow for you.
Automating your accounts payable process can improve your cash flow and AP management. And Unloop can unlock the true potential of your AP automation features, thus upgrading your ecommerce accounting system. If you're ready to take the next step in accounts payable automation, contact Unloop today for a free consultation.
Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
There's a lot to think about when filing your taxes. The process can be even more complex for business owners like you because of the many tasks you need to accomplish. If you’re a beginner in the field, the lack of knowledge and the intricate details of calculating, collecting, and filing taxes can be overwhelming. Many tax rules and regulations, especially with sales taxes, are always subject to change.
That’s why it’s important to get organized. Doing taxes right will ensure you won’t get in trouble with the Internal Revenue Service (IRS), and your business can run smoothly. With that, here are nine tips you can apply and the help you can get from remote bookkeeping companies in case you’ll need to partner with one.
The first thing you need to do is to register as a taxpayer. You must ensure you get your basic information correctly, such as your name, address, and contact number. You should also determine your tax status or business type. Owners must determine whether your business type is a sole proprietorship, corporation, partnership, cooperative, or limited liability. What you declare will determine the taxes you need to pay.
As a business, you’ll be concerned with corporate taxes, sales taxes, your personal income tax, and the income taxes of your employees (if you have any).
Corporate income tax: These taxes are applied to all companies. Companies need to pay duties based on their total annual income.
Personal income tax: Owners and shareholders of a company should also declare their personal income tax. This is based on their total income for the year.
Employee income tax: And if you have employees, it is your duty to compute, deduct, and remit income taxes of your employees.
Sales taxes: All the goods you sell, unless classified as tax exempt, are subject to sales tax. Buyers pay this, but it is your duty to compute, collect, and remit them.
The paperwork does not stop after registering yourself as a taxpayer. It is only the beginning; the next step would be to familiarize yourself with these many different tax forms.
While some of the forms here don’t apply to you, it would be best to familiarize yourself with those that do.
While most individuals and transactions are taxable, there are also tax exemptions. For instance, a state defines a certain non-taxable income which, when satisfied , can exempt taxpayers from paying taxes. When organizations function solely for charity, religion, education, and scientific research, they are tax exempted.
Regarding sales taxes, there are also various tax exemption rules. For example, certain goods, like food and groceries, are classified as non-taxable as they are necessities. The regulations vary per region as sales taxes are determined per province or state. A financial transaction in one state may be exempted in a certain state but may be taxable in the other. Hence, as a business owner, you should check for specific rules on a grassroots level.
To give you a little more push to take taxes seriously, declare accurate values, and pay on time, you should also be aware of the repercussions you might face if you fail to become a good taxpayer.
So, instead of suffering these consequences, it’s in your best interest to be a responsible taxpayer. You can also make use of various tax assistance from the IRS. Some of these are as follows:
One important part of tax preparation is to begin bookkeeping and accounting early. Bookkeeping tracks all financial business transactions and organizes them into categories. When tax season comes, you’ll have all the data you need for the tax declaration.
Meanwhile, accounting can help you understand how much tax you’ll be paying. Your accountant can generate tax and financial reports for you, so you can set aside tax payments immediately and not spend them on business operations. Business owners like you know very well that the after-tax income is your real income, and the money you should spend to make your business thrive or grow.
In case you cannot squeeze these tasks on your plate, you can always rely on a remote bookkeeper or sign up for a virtual bookkeeping service.
Not only should you collect financial data, but you should also ensure that you get all the details accurately. One way to achieve this is to invest in software that captures financial statements and documents and converts them into usable text data. This method takes away the possibility of human error in manual data entry. You can rely on Dext Prepare, Shoeboxed, and Wave for this task.
Meanwhile, don’t fall short of reliable, investment-worthy online bookkeeping and accounting software. Check out Quickbooks Online, Xero, Sage50 Cloud, and Freshbooks. These tools can help you track the income and expenses of your business; they allow bank reconciliation, the creation of invoices, inventory management, and report generation. Experts in a virtual bookkeeping service company also use these tools to ensure accuracy and efficiency in bookkeeping for your business.
Getting ready for tax season doesn’t only mean minding how much you need to pay for the current tax year. You can always enact tax planning to forecast how much you’ll spend for the next quarter or even in the next tax year. You can make this area a part of your business forecasting.
When you see how much you need to pay in advance, you can plan how you can lower your taxes. You can also ensure that you set aside the tax amount you have calculated to avoid using it for other expenses. Finally, you can also plan how you will spend your after-tax income to scale your business.
You will be faced with a lot of costs when running a business. So, you may think that doing accounting and bookkeeping on your own is the way to go. Besides, it is one way to save some costs. If you have experience, then you can probably handle these yourself. However, for those who aren’t trained for it, it is still best to seek help from experts because of the following reasons:
As a small business owner, it’s important to know everything there is to know about taxes. It’s beneficial to know the different tax laws and regulations that apply to your industry. You can avoid costly mistakes and penalties by understanding the basics of tax preparation and filing. The tips we’ve shared should give you a good starting point, but if you need more assistance, don’t hesitate to reach out to a virtual bookkeeper, accountant, or tax specialist.
What is remote bookkeeping? Remote bookkeeping services is what we do. At Unloop, we provide:
We’re experts in the field and we can help you get a head start on your business’s taxes. Have more questions? Contact us today for a free consultation!
Accounting software is a great help to business owners in managing and organizing their finances. As your business grows, more transactions are made, and keeping track of cash flow becomes more complicated. An accounting software can handle all the finance related tasks for your business, giving you more time to focus on other areas of your brand.
Cloud-based accounting software is popular with business owners because of its accessibility, and how it enables you to manage your finances anywhere and anytime. But which of the software options are best for your growing business?
We have three of the lesser-known accounting software for small businesses listed here. Though their names might not ring a bell, don't count them out just yet! They are certainly packed with features that will help you with your finances.
Pabbly is a cloud-based accounting software perfect for small businesses that don't have the budget to spend on expensive accounting tools. Pabbly offers automated solutions for billing, an easy interface to help track your expenses, and basic accounting features.
Here are some of the top features of Pabbly accounting software.
Invoicing is important to every business that sells and offers services. It is a receipt that acknowledges payments and allows your buyers to see their dues. Pabbly can generate invoices with a simple click, and you can create a customized one or choose from their preloaded templates.
Moreover, Pabbly can generate invoices for major currencies and send them to your clients through email notifications and payment channels like PayPal.
Automate Billing Subscriptions
Pabbly is best for businesses that offer subscriptions to their consumers. But, of course, not all your clients have the same deadlines. Pabbly can simplify subscription billings. With Pabbly, it is simple to keep track of both received and pending payments.
The software can detect delayed payments that may cause income loss. It can also notify if payments made through cards did not come through. Then, the system will attempt to recover the payment by repeating the charge to your customers.
Provides Detailed Analytics
Financial reports are essential to owners because they can use them to assess the overall status of their business. Pabbly can provide multiple reports regarding your business like expenses, revenues, and taxes.
In addition, Pabbly can give you insights on important metrics like your average sales, client refunds, and cancellations. You can use these details to develop strategies and pinpoint potential issues.
Kashoo is another cloud-based accounting software perfect for self-employed individuals and small business owners. Kashoo is known for its affordable price per user as you can add multiple users to pilot the software.
Here are the top features of Kashoo Accounting Software.
Real-time Dashboard Analytics
One of the top features of Kashoo is the real-time analytics on its dashboard. Without having to wait for reports to generate, you can immediately see how your business is going. You will be able to see graphs, charts and data income, expenses and other metrics regarding finances.
The data shown in your dashboard are all transactions received in your inbox. Take note that the dashboard metrics do not contain pending business transactions.
Creating an invoice with Kashoo is easy. You can create, send, and edit invoices in a matter of minutes. You can also duplicate and store copies, so you don't need to make new ones for recurring invoices.
Moreover, Kashoo accounting software allows your clients to set up credit cards on invoices you send them so you can receive payments directly. A credit card button option on invoice creation enables credit card payments.
Account Payables Tab
You also have to keep track of your expenses and your due dates to your suppliers. Kashoo accounting software has a Bills to Pay tab where you can input all your payables and their due dates, so you are never late with your obligations.
In this tab, you will have data on your total amount to spend in a month or a year. It also shows how many days are left before a bill is overdue and notifies you when you have passed the due date. However, there is no option to pay the bill through the software directly.
ProfitBooks is an online accounting software that handles finance tracking, the generation of necessary reports, and inventory management. If you own a big business, ProfitBooks can handle multiple warehouses in a single account. Tracking your finances has never been this easy.
Here are some of the great features of ProfitBooks accounting software.
Purchase Management Feature
In business, it is also important to keep track of your purchases. Of course, you have to buy raw materials or invest in pieces of machinery to produce your goods. The purchase management feature of ProfitBooks gives you a clear picture of what you need to buy to avoid overspending and eliminate calculation errors in your budget.
It’s easier when all financial transactions are made in one software. For example, ProfitBooks can send and receive payments, so you don't have to switch applications whenever a client sends a payment, or when you have to pay your suppliers.
Moreover, ProfitBooks can receive money from any currency through card payments and other payment channels. Once the process is complete, these payments are instantly reflected in your accounting software.
If you sell products, inventory management is a must for your business. Basic inventory management oversees the number of stocks and gives you alerts on products you need to stop or stock up on. But, ProfitBooks brings more to inventory management.
ProfitBooks has a multi-warehouse feature that lets you manage your inventory in different locations. You can use this feature to allocate your goods to your different warehouse locations and keep track of their movements, giving real-time updates on your stocks.
There are many accounting software choices for businesses, but why are more small business owners choosing online accounting software? Here are several reasons why it can benefit your company.
User-friendly and Easy to Organize
You don't need to be an accounting expert to use cloud-based software. Likewise, there's no need to attend training to use these tools effectively. Most cloud-based software is designed to be easily understood so that non-accountants can use them.
In addition, file organization in cloud-based software is easier. Data uploaded in the software are analyzed and tracked separately. This helps avoid confusion and errors and gives you a clearer picture of your business's financial health.
Cloud-based software doesn't require you to install any software on your computer or mobile device in order to use it. Instead, simply enter your login information into a browser and you can access your account. This feature is convenient, especially when working out of the office.
Moreover, cloud-based software allows you to store all your needed files in one place. It's also a multi-user application, so the system's files are accessible anytime your HR staff needs them.
More Reliable Security
One of the biggest concerns in accounting is data security. In traditional accounting methods, financial data is printed on paper, books, and ledgers. These books are more likely to get lost or stolen, which can cause a data breach.
In cloud-based accounting, you upload all your files online. Your system is protected with bank-level security and requires passwords. You can ensure that all your business data is protected. Furthermore, it lessens the use of paper. Aside from security, it also saves you on expenses.
Cloud-based accounting software for small businesses is a great convenience for owners. Managing finances is time-consuming, and if you're not used to doing it, errors may plague your finances that can affect the flow of your business. So take advantage of convenient accounting software to simplify managing your finances.
The three cloud-based software are perfect for small businesses. These options are capable of basic accounting needs that businesses require. But if we are to choose, Pabbly software is best for new business who are looking for accounting tools that will not cost them much. However, Kashoo and Profitbooks are packed with adds-on that you will need when your business expands. Additionally, reaching out to experts is always a smart move. Their expertise in the area will help you manage your finances easily and accurately. Unloop offers bookkeeping services, forecasting, accounting services, and tax management to help you out. Talk to our professionals, and let's discuss what we can do for you.
No matter how small your e-commerce business is, you still have a tax liability. That's right - even if you sell a few items online, you must still pay taxes on your earnings. There are several different types of taxes that you may be responsible for, but today we'll focus more on filing your income tax.
If you're unsure what that tax deadline is or what else you need to do to file your taxes, don't worry - this blog post will break everything down for you. Keep reading to learn more!
Businesses have to pay income tax like individual taxpayers based on their profit. And like personal income tax returns, you have tax return due dates you need to take note of.
Estimated payments are exactly what they sound like - a rough estimate of taxes you owe per quarter. Businesses must file these tax returns if they expect to owe at least $1,000 in taxes for the year. Your estimated tax payment is typically made four times per year.
Estimated taxes can be tricky. After all, your income, deductions, and credits can change from year to year, making it difficult to know how much you'll owe. However, you can calculate your current year's taxes using your income, deductions, and credits from the previous tax year.
Of course, your actual tax liability may be higher or lower than your estimate, but using last year's information can be a helpful way to get started.
Unfortunately, quarterly payment due dates for an income tax return aren't the only business tax deadline you need to look out for. Businesses also need to file tax returns on a yearly basis.
Having a 12-month accounting cycle has a specific purpose for small business owners who owe taxes. The tax year is often based on the regular calendar year, but it can be any 12-month period used consistently. It can also be a fiscal year, an accounting period ending in any month except December.
Online business owners can choose to use the calendar year or a different 12-month period as long as they use it consistently. The IRS imposes deadlines for filing taxes and paying taxes due. Thus, you must pay on the 15th day of the 4th month after the end of the fiscal year.
But for this 2022, the due date fell on a legal holiday (Emancipation Day), thus moving the due date to the next business day, April 18, 2022. If the tax due date falls on a weekend or a holiday, federal tax payments are made after those dates.
An extension allows affected taxpayers to file their tax return by October 15 if they file Form 7004 before the April 15 deadline. Once you have finished filing Form 7004, you will have an automatic six-month extension to file your return.
Take note, though, that filing for a later deadline doesn't give you wiggle room for you to pay your taxes later. Therefore, you should still estimate this important tax deadline and make any necessary payments by the regular filing deadline.
In Canada, tax preparation happens differently. Business owners must make their tax filings by June 30. Meanwhile, you must pay your tax dues before April 30.
So if your tax professional advises you to file tax forms and tax returns before June, it's ideal so your business taxes will align with your payment due in April the following year. Being organized and prepared can ensure that you meet your tax obligations on time.
There is a lot of confusion about whether online businesses are exempted from income taxes. The simple answer is: it depends.
If your ecommerce business is registered as a sole proprietorship, you will still need to file an annual income tax return and pay taxes on your net profit. But if your ecommerce business is registered as an S corporation, you may be exempt from paying corporate income taxes.
There are also specific tax types that ecommerce business owners can be relieved from. Still, it's important to speak with a tax advisor or financial professional to tend to your specific tax needs.
Filing your taxes can be pretty painless if you take the time to stay organized throughout the year and know what to expect come tax season. Learn how to take the edge off when these tax deadlines are fast approaching.
The easiest way to file is to do it electronically. The income tax e-filing deadline will be less of a headache if you can pay using accounting or tax software. This typically results in a refund being issued in less than a month. Direct deposit is simple and effective. Plus, it's more secure than sending a paper check.
What if you realized you added too many zeroes to your income tax return after you had already filed it? Don't panic - this is surprisingly common among many new and veteran business owners.
First, gather relevant information or documents to help you correct the mistake. Then, you can file Form 1040X to make changes to your tax return. This form allows you to make changes to your previously filed return and must be submitted within three years of the original filing deadline.
If the error resulted in you paying more taxes, you must be prepared to pay interest or penalties needed. On the other hand, if the mistake decreases your tax bill, the tax agency can refund the amount. In either case, acting quickly and taking care of the problem is important to avoid any potential headaches.
That's it for our tax tips for small online businesses! Although the April 18 deadline has already come and gone, it's not too late to file your tax return if you are a small business owner. For those of you who prefer to have someone else handle your taxes, Unloop is here to help. With Unloop, you can easily and quickly file your taxes anytime, anywhere. And there's no need to worry about making mistakes - our expert team will review your return and ensure everything is correct before filing. We'll also help you maximize your refund to get the most out of your hard-earning profits. So why wait? File your tax return with Unloop's tax professionals today!
As a non-accountant, using accounting software can be frustrating. That's because you know there's something you’re doing wrong. Yet you can't pinpoint what it is or even know how you committed them. You just know something's not adding up.
Entrepreneurs are guilty of not spending enough time with their accounting software. They suck it in, boot up the computer, and try their best to put the numbers in. That's where the mistake is often rooted.
Let Unloop unravel these mistakes and how a single decision can help take them all off your plate. But first, let's give brief information about Quickbooks.
This section is intended for a small business owner with different accounting software who would like to transition. But, more importantly, it's for those business owners who are still doing their bookkeeping manually.
On-site small business accounting still exists. The ones who are commonly using Quickbooks Desktop are the traditional brick-and-mortar enterprises. It's like Microsoft Office but for accounting, and it has to be installed on your computer.
Here's a brief description of each plan option.
Quickbooks Pro Plus - Max of 3 users. $200 is charged per added user. You'll get tax tracking, income and expense tracking, and bills and inventory management.
Quickbooks Premier Plus - Up to 5 users. It can do the essentials such as tax recording, inventory management, bills payment, invoice, payroll, and report generation.
Quickbooks Desktop Enterprise - Up to 40 users. The complete package. It has what Premier Plus offers but with automation, staff training, and a dedicated accounting team.
Both on-site and ecommerce small business accounting are perfect for Quickbooks Online (QBO). The main selling point for this Quickbooks product is that it is cloud-based, and you can access it on any device.
Here's a brief description of its plans.
Quickbooks Online Simple Start - Ideal for the sole proprietor. It can do basic transaction recording, invoicing and receipts, basic reports, and sales taxes.
Quickbooks Online Essentials - Up to 3 users. It has everything the Quickbooks Simple Start offers, but with the addition of bill management and time entering.
Quickbooks Online Plus - Up to 5 users. It has inventory management and profitability projection capabilities.
Quickbooks Online Advanced - Similar to the Desktop Enterprise, but with cloud accounting features, such as premium app inclusions and data restoration.
Using a Quickbooks product may expose you to certain problems. Some common things are unorganized entries and books that won't balance. These symptoms manifest due to one or several of these Quickbooks small business software mistakes.
Quickbooks Online has a bank sync feature that downloads your bank account transactions. However, these are not automatically categorized.
One chaotic mistake non-accountants make is adding these synced transactions as entries without categorizing them first. This leads to disorganized journals and ledgers.
Quickbooks can have sub accounts under the main ones. While adding a sub account may be helpful when organizing expenses, it can also confuse.
Some sub accounts can cause redundancy and may end up just cluttering your financial statements. So be sure to know the nature of the income or expenses before creating a separate account.
Deleting transactions is like removing a piece of a puzzle in a set. Even if the rest is in order, that missing piece may throw the entire thing off.
If you delete a transaction that's supposed to be recorded, you will have to recreate it and fix the transaction amount. Choose instead to adjust or rearrange the transaction amounts.
Double entry happens when different people handle the bookkeeping. It can also happen when the one in charge forgets that they have entered the transaction already.
In most cases, Quickbooks has a feature that recognizes duplicate transactions. But to avoid double entry, tuck away any source financial document after it has been recorded.
This is when you take the check payment option route and fill in the details on the entry fields. As a result, it will reflect on a different part of your financial statement and may distort your profit and loss report.
Principal payments that fulfill the loan obligation must be debited as loans payable instead of as a business expense. That's because a loan payment is a liability. Thus, it should reflect on your balance sheet.
On the other hand, interests you pay that don't form part of the original loan amount should be debited under interest expenses. This will land the amount on your income statement.
Once you're confident that every transaction in a certain period is balanced and correct, you have to lock it. Not doing so will result in possible tampering. This can happen if the current period has transaction issues. This leads one to think that the only way to solve it is by adjusting certain accounts in previous periods.
That's not supposed to be the practice. If all previous periods are balanced, you'll only need to look at present transactions to fix the error.
Transactions with inaccurate dates will appear in period reports where they shouldn't be. This can be problematic, especially if you're prepping for tax filing.
Double-check the transaction dates, and lock them on Quickbooks once you're done recording them. If left unchecked, it can mess up the balancing and reporting of your transactions.
The online Quickbooks accounting software doesn't recognize the vendors where the payment deposits came from. This can directly affect accounts payable transactions where you have to issue an invoice for payments received.
More than the burden of accounting inaccuracy, misappropriating client details can lead to the wrong issuance of an invoice to the wrong client.
If there are certain pending payments or charges without a cleared date, and your transactions are already balanced for the accounting period, you have to declutter them.
Any transaction scheduled for payment during the accounting period that doesn’t get cleared has to be removed. Otherwise, you must reverse it and carry it over to the next period.
Handing over your Quickbooks records to professionals is an excellent way to reduce or even eliminate these common mistakes. This is because they are skilled and know how to spot and fix these errors when they present themselves.
Unloop has a team of accounting and bookkeeping professionals that can offer the following.
If you're a small business owner who has a shop set up online, our team of professional accounting and bookkeeping experts is equipped with skills to help you transition or streamline your accounting.
These people are specialists in accounting and bookkeeping for several ecommerce platforms such as Amazon and Shopify. They know how these marketplaces work and how to record transactions accurately.
Unloop bookkeepers are trained to have attention to detail. We want everything in order, so we will dive into your business transactions and accounts and clean it up until it's all in good order.
No need to dread the task of decluttering your transactions and committing accounting mistakes. Our accounting experts will track the errors down and correct them. We will even offer advice on avoiding these errors moving forward for a smooth transaction.
Our bookkeepers are capable of generating accurate statements. This is the benefit of them being meticulous with your business transactions. We don't just generate your financial statements during tax time; we will generate them monthly with accuracy because we can.
With our consistency, you can be more confident in managing your business's performance. In addition, you'll get a month-by-month comparison of how your business is doing, and all you need to do is ask.
You can put as many credit or debit card accounts associated with your business. Our accounting experts will ensure each synced transaction is properly reconciled with your books.
Consequently, we can assist in categorizing downloaded transactions so that they go to the right place and reflect on the right sections of your financial statements.
You won't need to worry about knowing how to pay your taxes in your Quickbooks business tax software properly. Our bookkeeping experts are backed by a network of accountants that you can tap to file taxes for yourself. Just say the word.
On the other hand, if you choose to use your accountant to file the taxes, that can also be done. The bookkeepers will hand over your statements and assist your accountant with anything they need.
You can coordinate with Unloop whenever you need to. Once you get our team to work on your accounting, you'll be given access to Slack where you can chat with the accounting and bookkeeping professionals.
An ecommerce business owner who uses QuickBooks software will benefit greatly from Unloop. By hiring us to take over the system, you’ll avoid all of the common mistakes small business owners commit on the platform.
Unloop is adept with the way this accounting software works. Once you hand over your accounting, you can just let us work while you focus on your business. Truly, it's like putting your Quickbooks software for business on autopilot.
Talk to us if you're tired of making these common Quickbooks mistakes. Let us set it right and give you peace of mind. Dial 877-421-7270 for a quick call, or check out our ecommerce services now.
In one way or another, small business owners like you have done ecommerce.
Think about the last time you sold a product. Perhaps you even created a business page and took pictures of all the items sitting in your shop or home. Maybe your customer got a hold of you through social media, and you concluded the business there. In a way, that is ecommerce.
There's no denying that today's world has opened its arms to online businesses. It took a pandemic to realize our existing technology is ripe for this switch, and it looks like it's going to stay.
Apart from a consumer-driven shift to online shopping, changes also happened behind the scenes. Accounting is one of the major influences, especially for entrepreneurs.
So let Unloop unravel how changes in accounting influenced this change. In addition, we will shed light on how accounting will continue to play a role in ensuring ecommerce is the future of business and how you can start making the switch, too.
For some established small or medium enterprises, there's hesitation regarding a shift to ecommerce. But accounting technology has become more advanced and accessible in the last few years making the switch to online accounting more palatable.
As a result, a typical business owner feels less resistance to the idea of virtual small business accounting and is now more open to making the shift. Here are some of the accounting trends that are changing the minds of today's business owners.
With the switch to ecommerce, small businesses think it's more practical to transition their accounting systems for easier management. This option became more attractive because of the accessibility of user-friendly accounting software such as Quickbooks.
Demand for accounting software (and other ecommerce related technology) increased. As a result, many small businesses jumped in and made the investment as part of their ecommerce business tools.
What's good about accounting softwares like Quickbooks is that they can be cloud-based; businesses can securely store their financial data on several servers. This makes their accounting reliable.
Quickbooks Online is an example of cloud accounting software. Aside from reliability, what makes cloud accounting very attractive to ecommerce shifters is the scalability. It allows businesses to tap into a vast storage space as their main accounting data center.
Cloud accounting also reduces costs. So it makes sense for owners to transition even just the accounting facet of their business online because there are infrastructures in place that can accommodate their data needs.
The existence of bookkeeping software and cloud storage gave rise to another type of online business: outsourced online bookkeeping. This eliminates the time-consuming task undertaken by in-house staff and passes it to more capable hands.
Outsourced accounting services are possible because could-based software allows access to accounting data remotely. As a result, ecommerce businesses can enjoy the benefits of having their accounting on autopilot even if their accounting staff is not in the business premises.
An online accounting service will not replace your accountant. Despite the growth in automation and artificial intelligence, a professional accountant is still valuable for any small business. If anything, they can enhance accounting services online.
Here are some functions an accountant can do in conjunction with your virtual bookkeeping or accounting service.
Whether you're a small business owner transitioning to ecommerce or have your feet firmly planted, accountants can help. In addition, they can assist you if you want to adapt your business's accounting system to include the ecommerce side.
Additionally, established ecommerce businesses will want to consult accountants for systems-related decisions. For example, things like investing in new accounting software or streamlining bookkeeping and accounting will need a professional's insight for it to be done in compliance with existing laws.
Incorporating accounting software, whether on your own or through an online bookkeeping service, involves a degree of automation. In most cases, automation happens during a transaction.
Accounting automation is excellent, but it's not perfect. For example, business bank accounts synced to the software may be removed, and amounts taken from different payment methods may cause issues. Depending on the volume and complexity of your business, this can cause a serious headache.
Currently, automation and artificial intelligence technology can't solve this issue. So this is where your accountant will shine. They can audit your business transactions and make sure they sync with the business accounting books and bank accounts in case the online system fails.
Current accounting software and online bookkeeping services have limited tax functionalities. Virtual bookkeepers can best assist by giving the information needed to file tax returns. Then, you do the filing itself.
But accountants are qualified to file taxes as well. They'll know which forms to fill out. Most importantly, they'll know the right amount to pay.
These are functions that are yet to be developed by any automated bookkeeping service.
As a small business looking for a partial or full ecommerce transition, it's always wise to start with the foundation—accounting. Laying this down before anything else ensures you have the right financial information system to manage and keep your ecommerce business running well.
The best bookkeeping service out there will have the following.
One of the highlights of online bookkeeping services is bank account syncing. Professional bookkeepers know how to link your business account to the accounting software. Plus, these professionals serve as your business's guardians because they monitor transaction issues.
This takes bank reconciliation almost out of the picture. Since every transaction made to and from your business account will reflect the system, there's no need to do manual cross-referencing to ensure the balance of the books matches what's on the account.
Bookkeeping is the bulk of any virtual accounting service. Hence why, it's interchanged with virtual bookkeeping service. By switching your accounting needs online, you'll be delegating the most time-consuming and tedious work on your business's accounting and finance side.
Both physical businesses and ecommerce businesses can benefit from virtual bookkeepers. That's because part of their bookkeeping task is to use technology such as Quickbooks Online and do a full cycle accounting for you. As a result, you'll get accurate and fast recordkeeping for your business.
A typical small business today relies on direct deposits to pay salary. That's one more complication to consider. A slight transmutation or omission error can result in giving too much or too little. Another thing that can happen is not paying your employees.
A payroll service can drastically reduce this issue. Bookkeepers ensure that the correct amount is paid to your employees' direct deposit accounts. Then, all you may need to do is click a button.
Payroll service is also an advantage if you're employing people from around the globe. Most ecommerce businesses do this, and they have to deal with foreign exchange rate fluctuations to maximize resources. Virtual bookkeepers can use their payroll tool expertise to help make this happen.
Tax preparation and filing season are perhaps one of the most stressful periods for any business. It's a time when books have to be audited internally and balanced to ensure everything is recorded and in the right place.
Even if you have accounting software, this can be challenging. That's because you or your staff may not attend to bookkeeping religiously.
This is where virtual bookkeeping shines. They stay on top of your business transactions because that's how they learn what you and your business need. Then, come tax time, you only need to request financial information, and they'll give it to you, which brings us to the next service.
If you're used to getting financial statements only during tax season, that can change. Accounting management services employ bookkeepers that can give you monthly financial statements so you also stay on top of your business even if it isn't time to file for taxes.
Generating financial reports is a breeze for an online bookkeeper. They ensure that monthly expenses and revenue are accounted for so they can send you reports. You can request stuff like balance sheets, income statements, and cash flow at a moment's notice.
When it comes to business-to-business transactions, owners and their staff highly value customer service. These people deal with end users and stakeholders, so they must ensure everything is running smoothly.
Accounting is no exception. Owners and their staff have to answer to investors, creditors, and tax collectors, to mention a few. So they'll need someone they can coordinate with to handle bookkeeping and accounting issues to ensure the cogs run as they should.
The best bookkeeping service has reliable customer service for owners and staff. They'll be ready to respond to you within a day for any accounting and bookkeeping problems.
In today's uncertain world, ecommerce stands as a beacon for everyone. As long as technology keeps evolving, online businesses will continue to improve. So it's best to keep up with it.
Future-proof your business and switch to ecommerce. If not fully, at least have an ecommerce facet. But before you do, have your online accounting services laid down first. This will ensure a seamless transition.
Talk to us if you're interested in checking out how our accounting and bookkeeping services can fit your ecommerce goals. Dial 877-421-7270 for a quick call, or check out our ecommerce services now.
Running a small business is no easy feat. There are several areas of a business that an owner should manage properly to keep their business running smoothly. Managing a company's finances is one of the most difficult aspects of running a corporation. Finances cover a wide area, such as accounts payable, taxes, shipping costs, inventory management, and more.
Many small business owners face difficulties in keeping up with their finances, ultimately leading to their business’s downfall. Fortunately, ecommerce bookkeeping services can organize, sort, and store your financial data for proper analysis. These data can be used to assess the overall health of your business and help you grow your business further.
Bookkeeping services help with the complexities of your finances. But before picking the cheapest bookkeeper, there are a few key attributes you might want to take into account. First, of course, getting a bookkeeping service is an investment. So make sure you get the service worth your money. Here’s how you can do that.
You’ll be surprised with just how many companies are offering bookkeeping services, which makes this industry one of the most competitive. While a relatively new bookkeeping service is not bad, the experience an agency has is proof of their high-quality service.
In addition to experience, it’s important to see if qualified professionals will handle your bookkeeping. It does not take professional education to be a bookkeeper but always ensure they have the proper training to give you the service worth your money.
Finally, it will do you well if you check their performance history. A credible bookkeeping company will be happy to show their portfolio. Their portfolio will help you see if they performed well with their previous clients and if their service is suitable for your business.
If you’re an online seller, the most common scenario is that you sell your products across multiple ecommerce platforms to gain more customers. It's a great idea for boosting sales and audiences, but tracking your inventory will be more challenging as you sell more products and grow your business.
Look for a bookkeeping service to consolidate all your inventory into a central account. Modern bookkeeping uses automated software for more convenient inventory tracking. As your business expands, be careful to hire an accounting service that can meet your demands.
Don't make compromises on services that limit selling on a single platform. Instead, choose the one that can provide you with services that suit your needs and, if possible, the one that uses the best software with advanced features.
The bookkeeping process has changed drastically over the years. From manually recording every entry on books and ledgers (that are usually error plagued and more likely to get lost), computers have made data recording more convenient.
Find a company that takes advantage of technology. Make sure their services can automate your business’s bookkeeping. They should also give you subscriptions to bookkeeping software which you can integrate with your business’s existing software.
Some of the technological advancements you should look for are mobile compatibility, cloud-based bookkeeping, multi-warehouse management, and data analytics.
Almost all companies accept a variety of payment options to make it simple for their clients. Payments are financial transactions that are the primary data of the bookkeeper's record. Ensure that the bookkeeping service can track and record every payment in your business, so your records are accurate, and your sheets are balanced.
Customers can make payments through a variety of means in addition to cash, like debit cards, credit cards, Apple Pay, Google Pay, and many more. If your bookkeeping service integrates software, ensure that the software identifies and records all of your payment options, so you won't have to revert to manual data entry.
Data shows that up to $428 billion worth of products are returned or refunded yearly. Dealing with returned items also costs sellers. It's an additional expense, especially when the item is defective. These additional expenses should also be transparent in your financial records.
Returns and refunds can hurt small businesses. That's why it's important that your bookkeeping service can track all of these expenses. Then, you can use the data to address certain issues and look for solutions to lessen the return cost so you can profit more.
In addition, shipping fees should also be included with expense tracking. Your customers' fee does not necessarily mean you pay the same cost as your courier. However, shipping is a form of expense in businesses, and accurate tracking of these expenses can help see if you're overspending.
One of the advantages of professional bookkeeping solutions is inventory management. You can manage your inventory more effectively by keeping track of your inventory. The system will tell you if you are running low on products that need restocking, so you can deliver to customers on time.
Inventory management can also tell you which of your goods run out faster, which you can take advantage of and stock more of to increase your sales. If you're selling on multiple platforms, ensure your bookkeeping service can track all your inventory across the platforms for a smoother supply chain.
Almost all the goods you sell are levied with sales tax. As a seller, you collect sales tax and remit it to the government tax collection agency. You should know that the payment you receive from your buyers is not completely yours. The buyers shoulder the sales tax, so a portion of your total sales should go to taxes.
One thing to look for in a bookkeeping service is sales tax management. With this service, it will be easier to remit the taxes with fewer errors and without having to guess the right amount. Failure to comply will mean fines and penalties, which are unnecessary expenses that can be avoided.
Moreover, proof that your business is paying the correct amount will be helpful when someone audits your business. A spotless record also draws investors, which is advantageous for growing your business.
Several firms offer bookkeeping for small and ecommerce businesses. But if you're unsure where you can get the best service possible, try Unloop's bookkeeping services. Our experts work extensively with ecommerce and inventory businesses to ensure your needs are met.
Here are some of the things you can expect from our bookkeeping services:
Bookkeeping is a tremendous help in keeping your funds organized. Your business's performance can be inferred in large part due to the statistics from your sales, costs, and taxes. That is why getting a trustworthy bookkeeping firm that accurately records and manages all your financial data is important. Make sure to take note of these considerations when looking for a bookkeeping service for your business. Bookkeeping is just one service Unloop can offer. Your growing business needs more than just clean books and records. Our services also include accounting, payroll management, forecasting, and managing your taxes. So give us a call right now, and let's discuss what we can do for your business.