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.
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.
If you're like most small business owners, you wear a lot of hats. You're the CEO, CFO, and accountant all rolled into one. And while you may be able to handle most of your finances on your own, some bookkeeping, accounting, and tax service tasks are best left to the experts. That's where an accounting and tax solutions agency comes in.
This blog post will discuss the eight services you can expect from a tax and accounting solutions company. Knowing what these companies offer will help you decide if they are investment-worthy and if they are just what you need.
First among the financial tasks you should accomplish as a business is your company bookkeeping. Bookkeeping ensures that all your financial transactions are tracked and recorded. When tax season comes, you will be prepared with the details you need to declare.
An accounting tax solutions company has trained bookkeepers who utilize the best bookkeeping and accounting software to ensure that they record accurate data. They team up with an accountant, so you can receive financial reports to help you direct your business’s next steps.
Aside from the regular reports bookkeepers and accountants prepare, like statement reports, balance sheets, shareholders’ equity reports, and cash flow, an accounting solutions company also handles forecasting.
Forecasting is a business method that foresees the company's financial status in the next month, quarter, or year. Predictors will use different methods like qualitative and quantitative methods to get forecasts that are as accurate as possible. Having updated books also helps ensure the accuracy of the business forecast.
Included in your books are accounts payable. Accounts payable is the amount you must pay your suppliers and creditors. When you know exactly how much your accounts payable is, you can set aside the payments immediately after accumulating your business income.
As a result, the money you’ll spend on operations will not exceed the amount you are supposed to spend. On top of this, you’ll also have peace of mind knowing that you have paid all your dues before making any purchases or scaling your business.
Taxes are already complicated, but even more when discussing sales tax. Sales tax regulations are different per state and province. Some charge sales taxes based on the destination, while others charge based on the package's source.
Skip the worry about making mistakes in complicated sales tax calculations with an agency. Agencies have sales tax calculation tools that are always updated with the latest rules. With this, the money you file, remit, and get refunded will always be correct.
When your business has grown, you’ll have more and more employees to manage. Included in your responsibility as an employer is handling their payroll. Although making payments is easy, behind the scenes, accountants need to get all employee tax information, calculate gross pay, check out for tax and other deductions, and determine a net pay to hand to your staff.
The nitpicky details will all be handled by your partner accounting and tax solutions team. You can skip the worry of getting irate comments from your employees because they will always get the correct amount and deductions every time.
When you have bookkeeping and accounting in place, you’ll be more relaxed when tax season comes. This is because your partner agency, which keeps your book in order, will only use the data in the books for your income tax return.
The best part about partnering with agencies is that you’ll always have a team to count on for your accounting and bookkeeping needs. Many of these agencies have their customer service channels readily available, so in case you have concerns or questions, you can contact them.
These agencies do not fall short of resources if you want to deepen your knowledge on accounting, bookkeeping, and taxes. They have articles, video explainers, and social media snippets to help you know more about the complicated world of business finances.
As you can see, there are many bookkeeping, tax, and accounting services that an accounting and tax solutions agency can provide for your business. At Unloop, we offer all these services to help businesses in every stage of growth. We’ll be on top of your business’s financial management by ensuring accurate bookkeeping, timely forecasting, tax planning, and efficient accounts payable and payroll processes. We promise top-notch customer service and the resources you need to succeed. Book a call with us now to learn more about how we can help your business thrive!
One of the best advances technology has for business is accounting software which helps manage finances more conveniently. Almost all businesses today have automated accounting software for more accurate management of finances. So even if you run a tiny company, investing in accounting software will benefit you.
There are several accounting software available for business owners. In addition, there are free trials left and right for you to experiment with. Among the software, three names always stand out—Xero, FreshBooks, and Sage Accounting. But which one should you invest in?
We will look at the different features of each accounting software to see which comes out on top of the Xero vs. Freshbooks vs. Sage Accounting software battle.
The ideal cloud-based accounting software for small and expanding businesses is Xero. Its features include managing invoices, inventory, bank reconciliation, and many more. Using Xero has a lot of benefits you may take advantage of. Let's examine some of this accounting software's top attributes.
The traditional method of creating invoices is through Excel sheets and manual input of data. This can be a hassle when you have a number of clients and don’t have much time to dedicate to creating invoices. For small business owners, Xero accounting makes invoicing simpler.
Of course, businesses also have dues to pay to their suppliers, especially for shipping and inventory. Xero helps you stay on top of dues and manage them. Here are some great features of Xero’s billing for business.
Xero has different plans for different needs. The most basic plan only costs $12 and is limited to 20 invoices per month which is perfect for micro businesses. Other plans will give unlimited use of the features and are better for medium to large companies.
Initially, FreshBooks was recommended for freelancers who wanted to track their incomes and expenses. But FreshBooks accounting software has launched different versions with additional features that can cater to small businesses.
Their new feature is the Accounting Partner Program which allows for a more cooperative approach between a hired accountant and business owner. Moreover, there are other features you can use, and here are some of them.
Every worker expects to get paid for the time they use for work. However, how frequently do workers neglect to record their time in and time out? It is a common problem with manual recording. FreshBooks has a time tracking feature so you can log in and out easily and record time automatically.
If you are working on several projects for a client, you may even categorize the time you spent on each project. Moreover, the built-in time tracking feature allows you to track time when you work off location.
Certain projects involve different people. FreshBooks allows multi-user access and lets everyone involved share essential documents needed in the project. This project management feature allows you to store all the files and documents in a single location and access them easily.
One reason business owners get accounting software is to keep track of their finances. Reports, however, are the most effective approach to see insights. FreshBooks can generate accounting reports from the transactions that happen in your business.
Some reports that the accounting software can generate are general ledger reports, profit and loss reports, sales reports, and expense reports. You can customize these reports by exporting them to an Excel sheet, or if you're happy with them, you can directly download them as PDF files.
Sage 50 is the leading accounting software for business, and it's also most popular for professional accounts because it can handle accounting tasks for small to big businesses. Here are some of the impressive features of Sage 50 accounting software.
As an owner, it's critical to understand how much money is coming into and going out of your company. Tracking your sales and expenses will let you know if you are making or losing money. Sage 50 can automate reports instantly, and you can even choose to generate monthly, quarterly, and yearly reports to assess the financial health of your business.
Furthermore, Sage 50 has built-in templates to choose from, so your reports are always suitable for presentation. This feature will save you numerous hours of compiling all your financial transactions, and you are less likely to make crucial errors.
Not all accounting software has payroll features, and its addition to Sage 50 makes it stand out. Other accounting software have payroll features through integrated applications, but this also means a separate subscription you have to pay for.
If your business has many employees, getting accounting software with a payroll service is an advantage. However, preparing your employee's payroll is time-consuming, and mistakes can be costly.
Sage's payroll features can report taxes, create pay slips and send payments—all through the application. In addition, all payroll details are uploaded to the cloud, where you can store and access them anytime.
Inventory management is one way to track your sales for businesses that sell products. Lack of stock may give your competitor an edge over you, and overstocking may affect your budget severely.
The inventory management feature of Sage 50 has real-time stock data, which tells you which products you should discontinue because they don't generate sales, and the products you should stock up on because they are profitable. You can use this information to guide your decisions regarding the products to invest in.
Now that we've seen the best features of each accounting software, which of these applications are best suited for your business? Each software has its advantages that will help you better manage your business.
For small businesses that are first-timers to accounting software, Xero is the best choice. Among the three, it is the most budget-friendly. Additionally, it has an intuitive user interface, so even beginners won't struggle with navigation. You can always upgrade your subscription if your company expands and requires more sophisticated accounting tools.
FreshBooks is best for self-employed individuals that cater to multiple clients. Time tracking is its greatest feature and it is especially useful when you need to be paid by the hour. It also helps you organize your projects because you can create different profiles for the different projects you are working on.
Lastly, we recommend Sage 50 for medium to large businesses. This accounting software has more advanced features that may be overwhelming for beginners. Consequently, it is preferable to utilize this software with the assistance of a qualified accountant. Moreover, the full package has payroll services, so it’s best suited for businesses with many employees.
Undeniably, accounting software takes off the tedious workload of managing your finances. Choosing the most appropriate accounting tool is crucial. To determine what works best for you, take the time to try each with the free trials available. We hope this comparison on Xero vs. FreshBooks vs. Sage gives you a clearer view of your choices.
If you need professional help regarding your business, Unloop’s services include tax management, payroll service, forecasting, and taxes. Visit Unloop today, and book a call with our experts and learn more about what we can do for your business.
Payroll management for ecommerce businesses can be a challenge. It’s because you must consider many factors, from calculating employee hours to paying taxes. Fortunately, there are so many tips and tools that can help do all these tasks. By using them to automate the payroll process, small companies can save time and money.
Let’s find out different ways that can help you manage your company’s payroll system in an easy yet flawless way.
To make your company’s payroll process even more efficient, we’ve made a list of tips from top payroll specialists. With these tips, you can make accurate payroll computations and avoid payroll processing errors.
If you want to make your payroll processes easier while reducing the risk of human error, you should consider automating your payroll system with cloud-based tools. Doing this ensures that employees are paid accurately and on time.
Additionally, cloud-based tools can help improve compliance with government regulations. With real-time updates and automatic filings, businesses can be confident that they are always up to date with the latest requirements.
Establishing strict payroll policies helps ensure that all employees are treated fairly and helps avoid the likelihood of workplace disputes. This will also promote a culture of transparency and trust within your company.
With firm payroll policies, you can ensure that accurate records are kept for each employee and that they are paid promptly. Additionally, it can reduce accounting and administrative costs while avoiding disruptions and maximizing efficiency.
Staying up-to-date on tax laws and regulations can be challenging because they are constantly changing. However, by ensuring that you know the latest changes, your company can maintain its compliance with the law, and your employees can get the right calculation of tax withheld from their paychecks.
Finally, staying up-to-date on tax laws can help you identify potential deductions and credits that your company may be eligible for.
Why go through all the hassle of managing your ecommerce company’s payroll system when there are now plenty of tools that can help you automate the entire thing? Here are six tools that will make you realize managing payroll for your small business can be a breeze.
Gusto provides small businesses with a completely automated payroll system, requiring only minimal human intervention. So your human resource employees can schedule remuneration data and benefit from hands-free payment processing. Thus, it gives little to no room for critical payroll errors.
You can use the tool to handle calculations, payments, and tax and year-end form submissions. It also allows you to unify and extract data from a cloud-hosted platform. So you can prepare single financial statements for different uses. Additionally, the tool uses digital pay stubs that are emailed to concerned parties after the payroll process, offering convenient paperless transactions.
Humi is a cloud-based tool that unites payroll and HR in one platform, making it easier for you to access and update payroll records. In addition, this system makes employee self-service possible because it allows them to download pay stubs and view benefits information, vacation requests, and more.
The tool gives your payroll manager full control over all payroll-related operations, including access permissions for executives, HR administrators, and employees. Aside from that, it has a centralized dashboard, allowing you to manage employee profiles and calendars as needed. Humialso has features like personalized reminders, digital signatures, payroll history tracking, and more.
Additionally, it automatically calculates, deducts, and remits payroll taxes, making it more convenient to keep your company in compliance with tax laws and regulations.
Paychex offers a couple of options for managing payroll systems. These options are Paychex Flex Essentials, Paychex Flex Select, and Paychex Flex Pro. Essentially, Paychex automates payroll processing and integrates employee data with HR and benefits, making management easier.
With its payroll management system, your payroll administrator can expect access to payroll activity controls, reporting tools, and analytics tools. In addition, it has more amazing features like automatic payroll calculation, payment, and tax filing. The best thing is that Paychex also tracks the changes in tax regulations and laws, Sso business owners can maintain compliance despite the changes.
The tool supports employee self service through access to pay stubs and tax documents in the employee portal. Your employees can also record their time and attendance and enroll, view, and update their employee benefits information.
QuickBooks Payroll comes with a selection of service plans, so ecommerce businesses can upgrade their plan according to the services they require. The payroll management software is perfect for small businesses because it mainly offers human resource and employee management services.
It makes employee onboarding, attendance tracking, compensation calculation, and benefits administration more convenient. And with its tax penalty protection, you can also benefit from efficient compliance management. In addition, this feature automatically resolves errors and reimburses interest costs or penalty charges.
BambooHR collaborates with TRAXPayroll to provide robust payroll management services through HR and payroll data integration. So you can access employee account numbers, hours, gross wages, deductions, and benefits on one platform. Additionally, you can instantly generate payroll reports with just a click of a button.
One of the greatest advantages BambooHR and TRAXPayroll give you is direct access to a payroll professional. That way, you can get immediate help in crucial situations. There’s also no need to worry about taxes because the integrated software has you covered. It automatically handles tax filing and tax payments in compliance with laws and regulations even if they constantly change.
Wagepoint offers one of the best payroll management solutions by taking the manual labor out of your business’ payroll staff. It simplifies the payroll process through cloud-based automation. This means that the platform manages the whole process to ensure that your employees will get the payment they’re due.
This online payroll software organizes and maintains your company’s data to manage important employee information, including direct deposit information, additional income, payroll deduction, and more. It also keeps track of federal, state, and local tax-related forms.
Payroll management doesn’t have to be a nightmare. You can make it simpler and more efficient by coming up with effective strategies and using the right tools. This way, you’ll be able to avoid the hassle of payroll and taxing errors and help your small business flourish.
We hope that this blog post provides you with everything you need to help make your company’s payroll system more efficient. If you’re interested in getting ecommerce accounting services for your business, contact Unloop today. Our team of experts will help you get started on streamlining your payroll system and other accounting needs.
No one can say they enjoy doing their taxes. It is messy and complicated, with unending forms and too many numbers. It also entails spending a lot of time getting it right, which may affect other aspects of your business. That's why owners need to be efficient when handling their taxes, so no part of their business is left behind.
Tax preparation is tedious, but you can't escape it. At some point, you need to perform your tax obligations to keep your business running smoothly. To help you out, we have a checklist of the things you need to prepare and some helpful tips for tax preparation.
Keep your business running smoothly and maintain your good record with your local tax collection agency. Here are some things you should do in order to get the best business tax management possible.
For individual taxpayers, the deadline for filing tax returns is April 15. In most common scenarios, this also applies to small business owners. However, depending on the type of business you choose to establish, timelines may change.
For instance, if your small business is organized as an S corporation, the tax filing deadline is on March 15 at the conclusion of each fiscal year. In addition, several tax-related tasks have different deadlines. Make it a habit to consult your local tax calendar, so you never miss them.
Missing the deadline may incur unnecessary penalties, and that money can be allocated to aspects of your business that need improvement instead.
One of the most time-consuming parts of tax preparation is gathering all the documents you need for filing and validation. In addition, each type of business may require different tax forms. If you don't know which to get, these forms are available for download on tax collection agency websites.
Generally, forms include a complete picture of your finances and tax obligations. Sometimes, tax collection agencies may require supporting documents that go with the form, so have copies of your documents.
Here are some of the most common tax forms you will encounter.
The taxes you are due to pay depends on the income you declare on the forms you file. The records are one way for tax agencies to verify if the numbers you report are true. When the IRS visits your company to conduct an audit, these records will also be useful. Of course, a number of financial records go through the business. So if you don't know what you need for your taxes, here are some important income records you should have ready.
You can decrease the tax amount due by qualifying for exemptions in several ways. But the process is long and requires several documents for verification. The documentation of your business expenses is evidence you can submit for tax breaks.
Correct and more detailed information will help get your deductions approved easily. Here are some business documents you should prepare when applying for deductions and exemptions.
Since exemptions may not be so clear cut, a tax expert's advice is usually recommended if you want to get the most from your allowable deductions.
Tax preparation goes both ways. Just as you report income to your local tax collection agency, they also need to return information to your business. So ensure you receive the information you need to ensure your tax preparation is on track.
For example, if your business has employees, you should have W-2 forms that tell your workers the total income and allowable deductions. In addition, these forms will tell you if the amount you paid is taxable. Some taxation laws don't collect taxes unless you reach a certain amount.
It’s not a mistake to ask for an extension if you need the extra time to complete your tax returns. Remember, you also have to file a request if you need more time to complete your declarations. However, extensions are only applicable for filing. This means you still have to pay your taxes on time.
First extensions are typically simple to obtain; after that, asking for another extension will be a more challenging process. Finances are messy, and if you're a business owner who wants to get everything done ahead of time, you may want to find tax preparation services for small businesses to help you.
If this year was challenging for you, make appropriate adjustments to make tax preparation a breeze. Eliminating problems requires knowledge of what to do and what not to do. Moreover, it helps you avoid penalties due to late filing.
Take note of the things that you could've done differently and implement them in the next taxation year. It takes years for business owners to learn how to manage their taxes smoothly, but you can speed it up through consultations with tax experts.
Tax software is the best way to make preparations convenient and accurate. In addition, tax software can help with planning. All you need to do is input your data. It also gives you a projected cost of the tax you owe and ways on how you can save.
Moreover, successful tax planning lies in organized bookkeeping. Some of the available software comes with automated bookkeeping, so your financial records will always be in line and ready for tax season. This way, preparations are faster and less prone to errors.
The best way to get taxes off your hands is to get a professional to handle them. If outsourcing is one of the most complicated parts of your business, get an expert to do it. Unloop offers tax management for ecommerce and small businesses. This way, you’ll never have tax complications again.
Our tax services include the following:
We also ensure the services are accessible to everybody. We have three different price points, so you don't blow your entire budget all at once. You can talk to our experts to see which one fits your business needs best.
As a new business owner, learning how to manage your taxes will take time. Tax preparation is a complex process, and it can be time-consuming when you have no idea about the things you need to do. This checklist we created for you will help simplify the process. If you want to focus on other parts of your business, outsourcing tax preparations to experts is a wise decision. Aside from tax management, we also have other services your business may benefit from. Take a look at our payroll management, forecasting, and bookkeeping services, and don't forget to book a call with our experts to get started.