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Mike P - Green background
Michael Pignatelli, CPA
CEO, Unloop

Category: Bookkeeping

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.

1. Get your tax information right

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.

2. Know which taxes should concern you

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.

3. Know the different tax forms

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. 

  • W-9: The W-9 contains your Taxpayer Identification Number (TIN). It is the form to give whenever an office, organization, and eCommerce platform requires a TIN submission. 
  • W-2: If you have employees, you should submit this form on behalf of your employees. It contains employees’ total income for the recent tax year.
  • W-4: Your employees will submit the W-4 form to you, their employer. This form includes details on how much tax you should withhold and remit from your staff’s gross pay.
  • 1042S: This form that declares income is for foreign business owners.
  • W-8BEN/W8-BEN-E: To be approved as foreign sellers and become non-US taxpayers, business owners need to accomplish the W-8BEN/W8-BEN-E forms. After doing so, they will be issued a Foreign Status Certificate.
  • 1099: There are two kinds of 1099 forms, the 1099 interest income and the 1099 miscellaneous income. The first comes from banks and financial organizations that pay you interest. You should declare the deposit on your income tax return. The latter declares a freelancer/self-employed person’s total income from clients.
  • 1098: A form homeowners accomplish to declare mortgage interest.
  • 1040: The basic form you’ll accomplish to declare your annual income tax return.

While some of the forms here don’t apply to you, it would be best to familiarize yourself with those that do.

4. Discover when tax exemption applies

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. 

5. Be concerned about non-payment repercussions

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.

  • The IRS can seize assets and bank accounts to acquire the tax payments you fail to pay.
  • They can also charge interest to you, so you’ll end up paying the tax debt plus the interest.

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:

  • Communicate a payment arrangement to the revenue officers that is a win-win for you and the IRS.
  • You can also apply for tax relief to reduce the charges and bills you need to pay.
  • Be honest about the payment terms you are capable of. Your state's internal revenue organization will help you find reasonable terms to pay off your debt.
  • Report immediately to explain why you could not pay taxes instead of waiting to be called out.

6. Do bookkeeping and accounting early

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.

what is remote bookkeeping

7. Invest in bookkeeping, accounting, and tax software

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.

8. Plan and forecast your taxes

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.

9. Seek help from experts

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:

  • Trained and licensed individuals, those who are Certified Public Accountants even, will handle your bookkeeping and accounting.
  • All financial transactions for the year will be put together and updated timely.
  • Bookkeepers and accountants will utilize software to ensure data accuracy.
  • You’ll receive financial reports regularly and as needed.

Remote Bookkeeping Business By Unloop

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:

  • Small business and eCommerce online bookkeeping services
  • Accounts payable management
  • Forecasting
  • Payroll solutions
  • Tax management

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!

9 Tax Preparation Tips and How a Remote Bookkeeping Business Can Help
Watch Now

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.

1. Get your tax information right

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.

2. Know which taxes should concern you

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.

3. Know the different tax forms

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. 

  • W-9: The W-9 contains your Taxpayer Identification Number (TIN). It is the form to give whenever an office, organization, and eCommerce platform requires a TIN submission. 
  • W-2: If you have employees, you should submit this form on behalf of your employees. It contains employees’ total income for the recent tax year.
  • W-4: Your employees will submit the W-4 form to you, their employer. This form includes details on how much tax you should withhold and remit from your staff’s gross pay.
  • 1042S: This form that declares income is for foreign business owners.
  • W-8BEN/W8-BEN-E: To be approved as foreign sellers and become non-US taxpayers, business owners need to accomplish the W-8BEN/W8-BEN-E forms. After doing so, they will be issued a Foreign Status Certificate.
  • 1099: There are two kinds of 1099 forms, the 1099 interest income and the 1099 miscellaneous income. The first comes from banks and financial organizations that pay you interest. You should declare the deposit on your income tax return. The latter declares a freelancer/self-employed person’s total income from clients.
  • 1098: A form homeowners accomplish to declare mortgage interest.
  • 1040: The basic form you’ll accomplish to declare your annual income tax return.

While some of the forms here don’t apply to you, it would be best to familiarize yourself with those that do.

4. Discover when tax exemption applies

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. 

5. Be concerned about non-payment repercussions

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.

  • The IRS can seize assets and bank accounts to acquire the tax payments you fail to pay.
  • They can also charge interest to you, so you’ll end up paying the tax debt plus the interest.

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:

  • Communicate a payment arrangement to the revenue officers that is a win-win for you and the IRS.
  • You can also apply for tax relief to reduce the charges and bills you need to pay.
  • Be honest about the payment terms you are capable of. Your state's internal revenue organization will help you find reasonable terms to pay off your debt.
  • Report immediately to explain why you could not pay taxes instead of waiting to be called out.

6. Do bookkeeping and accounting early

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.

what is remote bookkeeping

7. Invest in bookkeeping, accounting, and tax software

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.

8. Plan and forecast your taxes

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.

9. Seek help from experts

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:

  • Trained and licensed individuals, those who are Certified Public Accountants even, will handle your bookkeeping and accounting.
  • All financial transactions for the year will be put together and updated timely.
  • Bookkeepers and accountants will utilize software to ensure data accuracy.
  • You’ll receive financial reports regularly and as needed.

Remote Bookkeeping Business By Unloop

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:

  • Small business and eCommerce online bookkeeping services
  • Accounts payable management
  • Forecasting
  • Payroll solutions
  • Tax management

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!

Read more

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 Connect Accounting Software 

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. 

Creating Invoices

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 Accounting Software 

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. 

Invoice Creation 

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 Accounting Software 

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. 

Direct Payments 

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. 

Inventory Management 

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. 

Advantages of Cloud-based Accounting Software

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. 

Always Available

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. 

The Takeaway 

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.

Manage Your Finances with These Cloud-Based Accounting Software for Small Businesses
Watch Now

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 Connect Accounting Software 

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. 

Creating Invoices

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 Accounting Software 

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. 

Invoice Creation 

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 Accounting Software 

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. 

Direct Payments 

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. 

Inventory Management 

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. 

Advantages of Cloud-based Accounting Software

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. 

Always Available

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. 

The Takeaway 

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.

Read more

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!

Income Tax Filing Deadlines for Business Finances

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.

Quarterly Estimated Tax Payments

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.

Yearly Federal Income Tax

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.

Tax Extension Deadlines

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.

Income Tax Filing Deadline in Canada Revenue Agency

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.

Ecommerce Businesses Exempted From Income Taxes

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.

Every Tax Tip for a Complete and Accurate Return

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. 

Pay Taxes and Get Your Refund

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.

Amend Your Tax Form

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.

File Your Tax Return With Unloop

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!

Understand the Income Tax Filing Deadline for Small Online Businesses
Watch Now

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!

Income Tax Filing Deadlines for Business Finances

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.

Quarterly Estimated Tax Payments

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.

Yearly Federal Income Tax

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.

Tax Extension Deadlines

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.

Income Tax Filing Deadline in Canada Revenue Agency

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.

Ecommerce Businesses Exempted From Income Taxes

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.

Every Tax Tip for a Complete and Accurate Return

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. 

Pay Taxes and Get Your Refund

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.

Amend Your Tax Form

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.

File Your Tax Return With Unloop

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!

Read more

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. 

Considerations You Should Look Into 

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.

Check the Company’s Experience 

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. 

Compatibility with Ecommerce Platforms 

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. 

Keeps Up with Modern Technology

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. 

Payment Processing 

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. 

Refunds, Returns, and Exchange Tracking 

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.

Inventory management 

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. 

Sales Tax Management 

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. 

Unloop: The Bookkeeping Company Perfect for Small Businesses 

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: 

  • Accurate balance sheets, cash flow, and income statements monthly. 
  • The best bookkeeping software for ecommerce. Our experts set up the data for you, and everything is automated from then on. 
  • Financial statements done with the use of accrual accounting methods. 
  • Analysis and KPIs that directly apply to your business. 
  • FIFO and WAC methods for inventory management and COGS. 
  • Unlimited customer support via Slack.

Takeaway 

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.

Top Considerations When Looking for a Reliable Bookkeeping Company
Watch 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. 

Considerations You Should Look Into 

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.

Check the Company’s Experience 

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. 

Compatibility with Ecommerce Platforms 

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. 

Keeps Up with Modern Technology

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. 

Payment Processing 

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. 

Refunds, Returns, and Exchange Tracking 

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.

Inventory management 

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. 

Sales Tax Management 

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. 

Unloop: The Bookkeeping Company Perfect for Small Businesses 

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: 

  • Accurate balance sheets, cash flow, and income statements monthly. 
  • The best bookkeeping software for ecommerce. Our experts set up the data for you, and everything is automated from then on. 
  • Financial statements done with the use of accrual accounting methods. 
  • Analysis and KPIs that directly apply to your business. 
  • FIFO and WAC methods for inventory management and COGS. 
  • Unlimited customer support via Slack.

Takeaway 

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.

Read more

Have you tried going over tons of resources for thorough research? Visiting one library after the other, both online and physically, to arm yourself with knowledge on taxes? Or are you relying on stock knowledge from a long time ago?

As a business owner, you want to be well-versed and on top of all areas of your business, even your grueling tax management responsibility. However, with the many duties on your to-do list, it’s not easy to get everything done. And complicated tasks, like taxes, often get pushed to the back of the queue.

Don’t let this happen to you and your business, especially when you can get assistance from the best tax management agency

So, what kind of tax assistance can you get from them? And how will you know you are partnered with the best team? Keep on reading. We’ll answer these questions here!

Assistance From a Tax Management Service Agency

When you partner with an agency, they can give you bookkeeping and accounting services for your physical or online store. Some specialize in assisting income and expense tracking for various eCommerce sites, while others can cover everything. They also specifically take on the responsibility of managing your taxes. Here’s how they do it.

Sales Tax Computation

Sales taxes are one area of taxation that is constantly changing. This is because the regulations are under the imperative of states and provinces. They can enact changes anytime. Sales taxes can be based on the destination or source of the package. Some areas also have special rulings on sales taxes for different goods. Your tax agency has tools that are always updated with any recently altered tax laws and any new sales tax rulings ensuring that you always get the computation right. 

Income Tax Preparation and Filing

Since an agency manages your business bookkeeping and accounting, they can also determine your yearly income as a business or as an individual. After that, they can prepare the required income tax return the government mandates companies and individuals must file. 

Some agencies directly file your income taxes to ensure that you file your income tax return on time. As the owner, you must check your total income tax return and if it is already filed on your behalf.

Payroll Tax Computation and Filing

These are some of the payroll tax deductions your partner agency will compute, track on the books, and file with the tax office management concerned:

  • Federal income tax
  • Tax for Social Security
  • Medical care taxes
  • Income tax
  • Federal unemployment insurance tax
  • Self-employment tax

When applicable, these taxes will reflect in your books.

Tax Planning

As months, quarters, and years go by, your books will give you usable data for tax forecasting. The bookkeepers and accountants from your tax agency will use the historical data from accounting tax software for tax and financial planning. You can also forecast your after-tax income or profit when you plan your taxes. 

But note that financial projections aren’t always absolute as many uncontrollable factors can happen along the way. Nevertheless, it can provide you, at least, with data about the total taxes you’ll have to pay, whether you can still lower them, or how you can keep them to a minimum. 

Characteristics of the Best Team

Handling business financial records is a sensitive task, so you must be partnered with a trusted agency. When agencies seem to have the same bookkeeping and accounting offers, how do you know who to team up with? How do you make sure you are partnered with the best? Here are some of the characteristics to look for.

Team of Experts

Check if you’ll be partnered with a Certified Public Accountant, or check if agency team members have certifications and licenses. These prove they have the proper training to do the job. Check out the brands and companies with which the agency has already partnered with, and review their feedback for social proof. Hopping on a consultation call with the agency would also help you realize if they are the right team for you.

Cost-Efficient

Partner with an agency that allows you to save money because of their service setup and plans. The cost-efficient way to partner with a bookkeeping and accounting team these days is through remote work. It saves you on operating costs while still giving you the services you need. Get into the details of what the agency offers. Compare the offers and costs to know which team offers the most cost-efficient plan.

Goes the Extra Mile

Who doesn’t want service providers who always provide extra without additional cost? Clients who have experienced this will surely voice their satisfaction through feedback, so check out what their current and past partners have to say about this. If you don’t see anything, get the answer straight from the agency when you hop on a consultation call with them.

Unloop Tax Management Services

If you are looking for superb assistance with your taxes, exploring the services offered by a top-notch tax management service agency is definitely worth your time. By entrusting an experienced team of professionals with this important task, you can rest assured that they will cover all of your bases, and you’ll receive the highest level of care possible. Unloop’s tax management services can provide you with the highest quality of support, all while keeping your costs low. We're here to help you every step of the way, so don't hesitate to reach out if you have any questions or concerns.

Get Superb Assistance From the Best Tax Management Service Agency
Watch Now

Have you tried going over tons of resources for thorough research? Visiting one library after the other, both online and physically, to arm yourself with knowledge on taxes? Or are you relying on stock knowledge from a long time ago?

As a business owner, you want to be well-versed and on top of all areas of your business, even your grueling tax management responsibility. However, with the many duties on your to-do list, it’s not easy to get everything done. And complicated tasks, like taxes, often get pushed to the back of the queue.

Don’t let this happen to you and your business, especially when you can get assistance from the best tax management agency

So, what kind of tax assistance can you get from them? And how will you know you are partnered with the best team? Keep on reading. We’ll answer these questions here!

Assistance From a Tax Management Service Agency

When you partner with an agency, they can give you bookkeeping and accounting services for your physical or online store. Some specialize in assisting income and expense tracking for various eCommerce sites, while others can cover everything. They also specifically take on the responsibility of managing your taxes. Here’s how they do it.

Sales Tax Computation

Sales taxes are one area of taxation that is constantly changing. This is because the regulations are under the imperative of states and provinces. They can enact changes anytime. Sales taxes can be based on the destination or source of the package. Some areas also have special rulings on sales taxes for different goods. Your tax agency has tools that are always updated with any recently altered tax laws and any new sales tax rulings ensuring that you always get the computation right. 

Income Tax Preparation and Filing

Since an agency manages your business bookkeeping and accounting, they can also determine your yearly income as a business or as an individual. After that, they can prepare the required income tax return the government mandates companies and individuals must file. 

Some agencies directly file your income taxes to ensure that you file your income tax return on time. As the owner, you must check your total income tax return and if it is already filed on your behalf.

Payroll Tax Computation and Filing

These are some of the payroll tax deductions your partner agency will compute, track on the books, and file with the tax office management concerned:

  • Federal income tax
  • Tax for Social Security
  • Medical care taxes
  • Income tax
  • Federal unemployment insurance tax
  • Self-employment tax

When applicable, these taxes will reflect in your books.

Tax Planning

As months, quarters, and years go by, your books will give you usable data for tax forecasting. The bookkeepers and accountants from your tax agency will use the historical data from accounting tax software for tax and financial planning. You can also forecast your after-tax income or profit when you plan your taxes. 

But note that financial projections aren’t always absolute as many uncontrollable factors can happen along the way. Nevertheless, it can provide you, at least, with data about the total taxes you’ll have to pay, whether you can still lower them, or how you can keep them to a minimum. 

Characteristics of the Best Team

Handling business financial records is a sensitive task, so you must be partnered with a trusted agency. When agencies seem to have the same bookkeeping and accounting offers, how do you know who to team up with? How do you make sure you are partnered with the best? Here are some of the characteristics to look for.

Team of Experts

Check if you’ll be partnered with a Certified Public Accountant, or check if agency team members have certifications and licenses. These prove they have the proper training to do the job. Check out the brands and companies with which the agency has already partnered with, and review their feedback for social proof. Hopping on a consultation call with the agency would also help you realize if they are the right team for you.

Cost-Efficient

Partner with an agency that allows you to save money because of their service setup and plans. The cost-efficient way to partner with a bookkeeping and accounting team these days is through remote work. It saves you on operating costs while still giving you the services you need. Get into the details of what the agency offers. Compare the offers and costs to know which team offers the most cost-efficient plan.

Goes the Extra Mile

Who doesn’t want service providers who always provide extra without additional cost? Clients who have experienced this will surely voice their satisfaction through feedback, so check out what their current and past partners have to say about this. If you don’t see anything, get the answer straight from the agency when you hop on a consultation call with them.

Unloop Tax Management Services

If you are looking for superb assistance with your taxes, exploring the services offered by a top-notch tax management service agency is definitely worth your time. By entrusting an experienced team of professionals with this important task, you can rest assured that they will cover all of your bases, and you’ll receive the highest level of care possible. Unloop’s tax management services can provide you with the highest quality of support, all while keeping your costs low. We're here to help you every step of the way, so don't hesitate to reach out if you have any questions or concerns.

Read more

Any excellent ecommerce business owner knows that sales and revenue must be the primary focus. From the business's infancy to maturity, owners must channel their efforts to activities that yield a better bottom line. 

But generating more business revenue is a challenging endeavor. Too often, entrepreneurs are left to deprioritize efforts in other aspects of their business, such as accounting and bookkeeping. As a result, they're more likely to commit mistakes.

That's why Unloop is here to inform ecommerce business owners about the common pitfalls they unknowingly fall into. Furthermore, this article will offer a practical solution that lets entrepreneurs go all out in pursuing profitability.

1. Not safekeeping business financial records

One thing any ecommerce small business owner often fails to do is to ensure all business financial records are well kept. A lot happens in a business, and oftentimes the owner fails to look over every receipt or financial document.

Storing financial data in tangible form has its merits. Still, in most cases, they are more vulnerable to being misplaced or lost. The only backup available is having several photocopies of each document which is time and resource-consuming.

In the digital age, it's unthinkable to lose data. That's why those who have migrated to online bookkeeping make sure all their business's financial data are synced to the cloud.

2. A lack of a filing system

A lack of a filing system is a common pitfall in safeguarding business financial records. An ecommerce business owner tends to have different types of business-related receipts and bills that are both tangible and virtual.

3. Poor transaction recording

When the lack of accounting and bookkeeping filing systems affects the safekeeping of financial records, accurate recording fails. Proof of business transaction is needed before anything is recorded, or else the IRS will come knocking.

As a result, transaction recording becomes distorted because some expenses that are supposed to be covered by the business cannot be recorded.

To solve this issue, you can: 

  • Be proactive in creating electronic copies of your receipts. 
  • Store them in folders inside a dedicated hard drive.
  • Invest in accounting software.

A major problem for online sellers, accountants, and bookkeepers that relates to transaction recording is balancing the business’s bank accounts. If the books and the bank accounts don't match, there's a whole set of problems you have to deal with.

It will be a breeze to solve this problem by incorporating online bookkeeping software to sync your business bank account. Then, monitor your accounts with a team of expert accounting services.

4. Not investing in online bookkeeping software early

Some ecommerce business owners still prefer old-fashioned "books." They or their bookkeepers still handwrite journal entries and fill out ledgers or spreadsheets. This is problematic, especially in a world increasingly reliant on virtual bookkeeping.

An ecommerce business may have difficulty keeping up with competitors using the time-consuming, manual method. So it's better to go virtual and invest in online bookkeeping software as early as possible.

5. Not having a certified public accountant on call

Some of us think that we don't need a certified public accountant (CPA) at the early stages of our business. It doesn't seem necessary if you're simply selling online. 

But there's plenty of value in having someone you can call when encountering an accounting or bookkeeping mishap. So find your CPA as early as possible or hire one from an accounting firm.

bookkeeping services - A guy holding his head down a table with scattered paper

6. Not distinguishing a small business owner's income

Ecommerce sellers selling in marketplaces such as Amazon will be at a loss whether their business is making money if they have no on-call accounting expert to call.

Often this gets thrown under the rug, and ecommerce business owners just withdraw cash from business accounts as needed. This may cause harm to their online business. So it's important to understand revenue, profit, and equity fully to know what is yours for the taking.

7. Not tracking what others owe and what the company owes

After all the withdrawals, a time will come when the business bank account may become overdrawn. The business owner may think they still have enough, but there will be unpaid receivables and plenty of payables that demand payment.

To avoid running short on cash, business owners need to track what is owed to the business and what it owes to others. Even their own debts to the business have to be tracked carefully. A reliable bookkeeper can help with this.

8. Not distinguishing between contractual and regular employees

Treatment for contractual and regular employees is different in the accounting books. This is because contractual employees fall under a different expense than regular employees, which falls under the 'salary expense' account.

Failing to identify this can skew the business financial statements and give inaccurate information about profit.

Be sure to draft different contracts for regular and contractual employees. Then, make these documents available to the accountant and bookkeeper so they can identify them for you.

9. A lack of tax planning and tax preparation

It's a challenge to pay taxes. That's why many ecommerce small business owners tend to put it off. This can be the case for those who suffer losses or breakeven.

Small business owners with little revenue may be given exemptions or breaks. But if they're not doing any tax planning and preparation, it's unlikely they’ll know about tax laws that serve an advantage.

To solve this problem is to be proactive about learning your business taxes. Also, go back and read pitfall #5 again.

10. Breakdown in communication between accounting and bookkeeping.

Many internal and external accounting problems stem from a lack of communication. The usual scenario is that ecommerce small business owners are always out of reach and busy, so the bookkeeper is left in the dark about how the entrepreneur is developing the business.

A solution is to have a platform where the ecommerce seller, their bookkeeper, and accountant can collaborate easily.

bookkeeping services - A guy holding his head down a table with scattered paper

Online Bookkeeping Services Will Reduce Startup Pitfalls

A lot of the pitfalls mentioned above are rooted in a single problem: time. So to solve these problems, it only makes sense to get online accounting services that will look after the accounting and financial aspects of your business. This is what a bookkeeping and accounting service can do for you.

Accurate Bookkeeping Service

These professional bookkeepers are trained to handle complex business transactions. They'll record every financially-impacting activity to reveal the true health of your business. So give them every financial data, and they'll take care of the rest.

Use of Online Bookkeeping

Outsourced bookkeeping firms use online accounting software such as Quickbooks Online (QBO) and Xero to record transactions fast. So if you have already transitioned your business to online accounting software, it'll be quick to hand it over to experts.

Network of Accountants

Hiring an online bookkeeping service firm lets you access a team of accounting experts. As a result, you are offered tax services where the online financial firm taps into its network to help file your business sales and income taxes.

This will be handy in case you don't have your CPA or private accountant to do it for you.

Financial Reports and Analytics Generation

A professional bookkeeper can generate different reports. For example, you can have financial statements that will give you detailed and accurate information about your monthly expenses, income, assets, liabilities, and capital.

Decision making will be much easier because you won't have to exert effort. Instead, an outsourced professional bookkeeper will help you see how your equity plays out in the bigger picture of your company.

Accounts Payable and Payroll Service

Part of the online bookkeeping service is ensuring all bills are accounted for and ready to be paid. Then, all it needs is a go-signal from you.

Accounting for employee salaries won’t be a worry for you by hiring an online bookkeeping service. This means you or your staff can focus more on identifying the employment nature of each worker within the company.

Accounting Software Cloud Backup and Sync

You won't have to worry about losing your financial transactions. Virtual bookkeeping services will monitor your transactions to ensure they are backed up in the cloud-based accounting software.

These professionals also ensure that your business bank accounts are properly synced to the accounting software. As a result, manual bank reconciliation will be a thing of the past.

Unlimited Communication

Partnering up with an online bookkeeping firm will help you solve one of the most vital components of an efficient accounting and bookkeeping system: communication.

You can have a responsive team of experts and you can discuss numbers. In addition, they'll be proactive in making sure you or your staff are well informed and reminded of what else is needed for them to hand you an accurate financial and analytics report.

Your Small Business Bookkeeping Services on Autopilot

Imagine yourself not thinking about accounting and bookkeeping in the course of your day-to-day business. That's what online bookkeeping services can do for you. It will make you feel like you're sitting in the cockpit with your hands behind your head, watching your business's accounting glide through the clouds because it's on autopilot.

Ecommerce bookkeeping services like Unloop will take care of your business's financial recording needs. We can be your outsourced accounting department, so all you need to do is click a button and make important decisions.

Talk to us if you're ready to make your accounting system fly. Call us at 877-421-7270 or check out our online bookkeeping service.

How Online Bookkeeping Services Can Solve Ecommerce Pitfalls
Watch Now

Any excellent ecommerce business owner knows that sales and revenue must be the primary focus. From the business's infancy to maturity, owners must channel their efforts to activities that yield a better bottom line. 

But generating more business revenue is a challenging endeavor. Too often, entrepreneurs are left to deprioritize efforts in other aspects of their business, such as accounting and bookkeeping. As a result, they're more likely to commit mistakes.

That's why Unloop is here to inform ecommerce business owners about the common pitfalls they unknowingly fall into. Furthermore, this article will offer a practical solution that lets entrepreneurs go all out in pursuing profitability.

1. Not safekeeping business financial records

One thing any ecommerce small business owner often fails to do is to ensure all business financial records are well kept. A lot happens in a business, and oftentimes the owner fails to look over every receipt or financial document.

Storing financial data in tangible form has its merits. Still, in most cases, they are more vulnerable to being misplaced or lost. The only backup available is having several photocopies of each document which is time and resource-consuming.

In the digital age, it's unthinkable to lose data. That's why those who have migrated to online bookkeeping make sure all their business's financial data are synced to the cloud.

2. A lack of a filing system

A lack of a filing system is a common pitfall in safeguarding business financial records. An ecommerce business owner tends to have different types of business-related receipts and bills that are both tangible and virtual.

3. Poor transaction recording

When the lack of accounting and bookkeeping filing systems affects the safekeeping of financial records, accurate recording fails. Proof of business transaction is needed before anything is recorded, or else the IRS will come knocking.

As a result, transaction recording becomes distorted because some expenses that are supposed to be covered by the business cannot be recorded.

To solve this issue, you can: 

  • Be proactive in creating electronic copies of your receipts. 
  • Store them in folders inside a dedicated hard drive.
  • Invest in accounting software.

A major problem for online sellers, accountants, and bookkeepers that relates to transaction recording is balancing the business’s bank accounts. If the books and the bank accounts don't match, there's a whole set of problems you have to deal with.

It will be a breeze to solve this problem by incorporating online bookkeeping software to sync your business bank account. Then, monitor your accounts with a team of expert accounting services.

4. Not investing in online bookkeeping software early

Some ecommerce business owners still prefer old-fashioned "books." They or their bookkeepers still handwrite journal entries and fill out ledgers or spreadsheets. This is problematic, especially in a world increasingly reliant on virtual bookkeeping.

An ecommerce business may have difficulty keeping up with competitors using the time-consuming, manual method. So it's better to go virtual and invest in online bookkeeping software as early as possible.

5. Not having a certified public accountant on call

Some of us think that we don't need a certified public accountant (CPA) at the early stages of our business. It doesn't seem necessary if you're simply selling online. 

But there's plenty of value in having someone you can call when encountering an accounting or bookkeeping mishap. So find your CPA as early as possible or hire one from an accounting firm.

bookkeeping services - A guy holding his head down a table with scattered paper

6. Not distinguishing a small business owner's income

Ecommerce sellers selling in marketplaces such as Amazon will be at a loss whether their business is making money if they have no on-call accounting expert to call.

Often this gets thrown under the rug, and ecommerce business owners just withdraw cash from business accounts as needed. This may cause harm to their online business. So it's important to understand revenue, profit, and equity fully to know what is yours for the taking.

7. Not tracking what others owe and what the company owes

After all the withdrawals, a time will come when the business bank account may become overdrawn. The business owner may think they still have enough, but there will be unpaid receivables and plenty of payables that demand payment.

To avoid running short on cash, business owners need to track what is owed to the business and what it owes to others. Even their own debts to the business have to be tracked carefully. A reliable bookkeeper can help with this.

8. Not distinguishing between contractual and regular employees

Treatment for contractual and regular employees is different in the accounting books. This is because contractual employees fall under a different expense than regular employees, which falls under the 'salary expense' account.

Failing to identify this can skew the business financial statements and give inaccurate information about profit.

Be sure to draft different contracts for regular and contractual employees. Then, make these documents available to the accountant and bookkeeper so they can identify them for you.

9. A lack of tax planning and tax preparation

It's a challenge to pay taxes. That's why many ecommerce small business owners tend to put it off. This can be the case for those who suffer losses or breakeven.

Small business owners with little revenue may be given exemptions or breaks. But if they're not doing any tax planning and preparation, it's unlikely they’ll know about tax laws that serve an advantage.

To solve this problem is to be proactive about learning your business taxes. Also, go back and read pitfall #5 again.

10. Breakdown in communication between accounting and bookkeeping.

Many internal and external accounting problems stem from a lack of communication. The usual scenario is that ecommerce small business owners are always out of reach and busy, so the bookkeeper is left in the dark about how the entrepreneur is developing the business.

A solution is to have a platform where the ecommerce seller, their bookkeeper, and accountant can collaborate easily.

bookkeeping services - A guy holding his head down a table with scattered paper

Online Bookkeeping Services Will Reduce Startup Pitfalls

A lot of the pitfalls mentioned above are rooted in a single problem: time. So to solve these problems, it only makes sense to get online accounting services that will look after the accounting and financial aspects of your business. This is what a bookkeeping and accounting service can do for you.

Accurate Bookkeeping Service

These professional bookkeepers are trained to handle complex business transactions. They'll record every financially-impacting activity to reveal the true health of your business. So give them every financial data, and they'll take care of the rest.

Use of Online Bookkeeping

Outsourced bookkeeping firms use online accounting software such as Quickbooks Online (QBO) and Xero to record transactions fast. So if you have already transitioned your business to online accounting software, it'll be quick to hand it over to experts.

Network of Accountants

Hiring an online bookkeeping service firm lets you access a team of accounting experts. As a result, you are offered tax services where the online financial firm taps into its network to help file your business sales and income taxes.

This will be handy in case you don't have your CPA or private accountant to do it for you.

Financial Reports and Analytics Generation

A professional bookkeeper can generate different reports. For example, you can have financial statements that will give you detailed and accurate information about your monthly expenses, income, assets, liabilities, and capital.

Decision making will be much easier because you won't have to exert effort. Instead, an outsourced professional bookkeeper will help you see how your equity plays out in the bigger picture of your company.

Accounts Payable and Payroll Service

Part of the online bookkeeping service is ensuring all bills are accounted for and ready to be paid. Then, all it needs is a go-signal from you.

Accounting for employee salaries won’t be a worry for you by hiring an online bookkeeping service. This means you or your staff can focus more on identifying the employment nature of each worker within the company.

Accounting Software Cloud Backup and Sync

You won't have to worry about losing your financial transactions. Virtual bookkeeping services will monitor your transactions to ensure they are backed up in the cloud-based accounting software.

These professionals also ensure that your business bank accounts are properly synced to the accounting software. As a result, manual bank reconciliation will be a thing of the past.

Unlimited Communication

Partnering up with an online bookkeeping firm will help you solve one of the most vital components of an efficient accounting and bookkeeping system: communication.

You can have a responsive team of experts and you can discuss numbers. In addition, they'll be proactive in making sure you or your staff are well informed and reminded of what else is needed for them to hand you an accurate financial and analytics report.

Your Small Business Bookkeeping Services on Autopilot

Imagine yourself not thinking about accounting and bookkeeping in the course of your day-to-day business. That's what online bookkeeping services can do for you. It will make you feel like you're sitting in the cockpit with your hands behind your head, watching your business's accounting glide through the clouds because it's on autopilot.

Ecommerce bookkeeping services like Unloop will take care of your business's financial recording needs. We can be your outsourced accounting department, so all you need to do is click a button and make important decisions.

Talk to us if you're ready to make your accounting system fly. Call us at 877-421-7270 or check out our online bookkeeping service.

Read more

Whether you have a hundred or ten employees to pay, managing payroll is stressful and time-consuming. One error can lead to a series of misunderstandings and can be costly for the whole company. That's why it is crucial for people handling the payroll to be accurate and have attention to detail. 

As a small business owner, you probably handle even the payroll department. To help you, here are some common errors that involve payroll and how payroll services make a difference in handling them. 

Payroll Mistakes to Look Out For 

With a process as complex as payroll, this aspect of the business is prone to errors. Here are some of the mistakes to watch concerning payroll

Failure to track overtime work 

Some of your employees extend their time to work for your company, and the best way to return their efforts is to ensure their overtime work is paid. It's a common complaint for workers not to receive their overtime pay, whether they worked for an hour or three hours and more. Make sure to have proper tracking systems in place to ensure proper compensation. 

Moreover, be mindful of government laws concerning overtime pay. For example, there are specific rates for overtime pay depending if your employee works on a regular day or a holiday. Make sure your company complies with them to avoid unnecessary issues. 

Delayed payment release

Being on time is an absolute must in releasing payroll. Your employees trust the admin to deliver the payment on time. However, payroll involves many steps like computing tax deductions, identifying employee benefits, and necessary reimbursements. 

Delayed payments can greatly affect the morale of your employees and give a negative impression of your company's administration. 

Failing to provide complete records 

Having payroll records is important to the employees as well as the employers. Providing your employees with a record will give them transparency on their pay. Records will help your employee see all the necessary deductions and the total pay they receive. In addition, these records will help them clarify if their pay is accurate. 

For employees, payroll records will come in handy when someone audits your business. In case of audits, keep at least three years' worth of payroll records for accuracy. 

Raises, promotion and terminations 

Raises and promotions of your employees are common and happen more often than you think. Promoted employees expect to see the changes in their salary effective as soon as possible. It's a common payroll mistake to overlook raises and promotion changes. The human resource department should have the proper documentation to identify the proper designation of your employees. 

Moreover, it's also important for the employer to have updates on employee termination. For example, some payroll periods rely on the pay cycle and fail to see a terminated employee. This situation may lead to overcompensation which puts your company at a disadvantage. 

Continuity of the payroll process 

As long as your company is running, payroll is a continuous process. After releasing payroll, you must ensure that the next pay cycle is already running. It's a common mistake in the payroll department to forget to apply necessary changes in the next cycle. Whether it is for recalculating rates, bonuses, commissions, or other payroll-related matters, make sure to implement necessary changes. 

Benefits of Online Payroll Services for Small Business

As much as possible, business owners want an error-free payroll. An efficient payroll system is one less thing to worry about. Many businesses outsource these tasks to payroll services and use payroll software. But are they necessary? Here are some advantages that businesses will get with payroll services. 

Accurate calculations 

As your business grows, naturally, the number of employees also increases. This means more people to pay, which in turn means more calculations that are more prone to human error. You don't have to worry about committing these errors with payroll services. All payroll computations are automated so that you won't make miscalculations. 

Furthermore, payroll services keep your business in the loop with tax changes. The software automatically notifies the user of changes and directly applies them to the payroll. So you are sure your employees are compensated accordingly, and your business complies with current tax laws. 

Always on schedule 

When you switch to an online payroll service, you’ll be surprised at how fast the payroll process is compared to the traditional method. Aside from making fast computations, these services can also produce instant reports and statements with a few simple clicks. You don't need hours of waiting and tedious data recording to make them. 

Moreover, being punctual in your payments gives your company a positive impression to your employees. Adhering to the schedule will motivate them and likely increase their productivity, which benefits the whole company. 

Efficient time tracking 

Most companies pay their employees depending on the time they spend working. That's why time tracking plays a critical role in ensuring a proper payroll process. Payroll software has built-in time trackers. This feature will save you time gaps from manual time recordings. 

Employers can easily identify if their employees are eligible for overtime pay and the number of hours they need to pay them. Discrepancies in pay are less likely to happen when you have a reliable payroll system and software. 

More data security 

The human resource department will require personal information from employees to process the payroll. Automated payroll services offer more security to your employee's data. The system has restricted access and requires passwords. Only administrators and authorized persons can access the data. 

Furthermore, these data are less likely to be lost compared to manual records. You can easily pull up information on bank details or social security numbers when your employee needs them. 

No required expertise

You don't need to be an expert to use payroll software. Most of these tools have user-friendly interfaces, making them perfect even for business owners new to automated payroll management. Furthermore, payroll services have designated experts to help you with payroll. 

These services provide unlimited support. Customer service is always ready to help and update with the changes with their system upgrades. So you will not be left not knowing how to operate your payroll management system. 

Moreover, payroll software is a good starting ground for business owners with no background in payroll management. The software providers include onboarding to help train business owners to handle and learn more about payroll. 

Online Payroll Services at Unloop 

If you can’t decide which payroll service to get, Unloop offers payroll solutions for small businesses. Here are some inclusions that come with our payroll service. 

  • We’ll handle paying your employees for you. We will link your business to a cloud-based payroll system and manage everything for you. 
  • We can easily generate important reports and statements and send them to your employees for proper tax filing. 
  • We automate everything so you can easily organize and access reports when in need. 
  • We use the best payroll software suitable for your business. You have the option to use payroll software like Gusto, Quickbooks, Paychex, BambooHR, Humi, and Wagepoint. 
  • We have three different pricing points to cater to businesses of all sizes.

Final Thoughts 

Payroll may be the most tedious department when owning a business, and simple errors can lead to a series of issues spreading through the company. We hope these common mistakes help you build a more reliable team for your payroll department. Moreover, take advantage of affordable payroll services and software for more efficient payroll management. If you’re looking for expert help for your growing business, Unloop has more to offer besides our payroll services. We have bookkeeping services, tax filing, and business forecasting. So book a call with our experts, and let's talk about what we can do for your business.

The Common Errors in Payroll and How Payroll Services Can Solve Them
Watch Now

Whether you have a hundred or ten employees to pay, managing payroll is stressful and time-consuming. One error can lead to a series of misunderstandings and can be costly for the whole company. That's why it is crucial for people handling the payroll to be accurate and have attention to detail. 

As a small business owner, you probably handle even the payroll department. To help you, here are some common errors that involve payroll and how payroll services make a difference in handling them. 

Payroll Mistakes to Look Out For 

With a process as complex as payroll, this aspect of the business is prone to errors. Here are some of the mistakes to watch concerning payroll

Failure to track overtime work 

Some of your employees extend their time to work for your company, and the best way to return their efforts is to ensure their overtime work is paid. It's a common complaint for workers not to receive their overtime pay, whether they worked for an hour or three hours and more. Make sure to have proper tracking systems in place to ensure proper compensation. 

Moreover, be mindful of government laws concerning overtime pay. For example, there are specific rates for overtime pay depending if your employee works on a regular day or a holiday. Make sure your company complies with them to avoid unnecessary issues. 

Delayed payment release

Being on time is an absolute must in releasing payroll. Your employees trust the admin to deliver the payment on time. However, payroll involves many steps like computing tax deductions, identifying employee benefits, and necessary reimbursements. 

Delayed payments can greatly affect the morale of your employees and give a negative impression of your company's administration. 

Failing to provide complete records 

Having payroll records is important to the employees as well as the employers. Providing your employees with a record will give them transparency on their pay. Records will help your employee see all the necessary deductions and the total pay they receive. In addition, these records will help them clarify if their pay is accurate. 

For employees, payroll records will come in handy when someone audits your business. In case of audits, keep at least three years' worth of payroll records for accuracy. 

Raises, promotion and terminations 

Raises and promotions of your employees are common and happen more often than you think. Promoted employees expect to see the changes in their salary effective as soon as possible. It's a common payroll mistake to overlook raises and promotion changes. The human resource department should have the proper documentation to identify the proper designation of your employees. 

Moreover, it's also important for the employer to have updates on employee termination. For example, some payroll periods rely on the pay cycle and fail to see a terminated employee. This situation may lead to overcompensation which puts your company at a disadvantage. 

Continuity of the payroll process 

As long as your company is running, payroll is a continuous process. After releasing payroll, you must ensure that the next pay cycle is already running. It's a common mistake in the payroll department to forget to apply necessary changes in the next cycle. Whether it is for recalculating rates, bonuses, commissions, or other payroll-related matters, make sure to implement necessary changes. 

Benefits of Online Payroll Services for Small Business

As much as possible, business owners want an error-free payroll. An efficient payroll system is one less thing to worry about. Many businesses outsource these tasks to payroll services and use payroll software. But are they necessary? Here are some advantages that businesses will get with payroll services. 

Accurate calculations 

As your business grows, naturally, the number of employees also increases. This means more people to pay, which in turn means more calculations that are more prone to human error. You don't have to worry about committing these errors with payroll services. All payroll computations are automated so that you won't make miscalculations. 

Furthermore, payroll services keep your business in the loop with tax changes. The software automatically notifies the user of changes and directly applies them to the payroll. So you are sure your employees are compensated accordingly, and your business complies with current tax laws. 

Always on schedule 

When you switch to an online payroll service, you’ll be surprised at how fast the payroll process is compared to the traditional method. Aside from making fast computations, these services can also produce instant reports and statements with a few simple clicks. You don't need hours of waiting and tedious data recording to make them. 

Moreover, being punctual in your payments gives your company a positive impression to your employees. Adhering to the schedule will motivate them and likely increase their productivity, which benefits the whole company. 

Efficient time tracking 

Most companies pay their employees depending on the time they spend working. That's why time tracking plays a critical role in ensuring a proper payroll process. Payroll software has built-in time trackers. This feature will save you time gaps from manual time recordings. 

Employers can easily identify if their employees are eligible for overtime pay and the number of hours they need to pay them. Discrepancies in pay are less likely to happen when you have a reliable payroll system and software. 

More data security 

The human resource department will require personal information from employees to process the payroll. Automated payroll services offer more security to your employee's data. The system has restricted access and requires passwords. Only administrators and authorized persons can access the data. 

Furthermore, these data are less likely to be lost compared to manual records. You can easily pull up information on bank details or social security numbers when your employee needs them. 

No required expertise

You don't need to be an expert to use payroll software. Most of these tools have user-friendly interfaces, making them perfect even for business owners new to automated payroll management. Furthermore, payroll services have designated experts to help you with payroll. 

These services provide unlimited support. Customer service is always ready to help and update with the changes with their system upgrades. So you will not be left not knowing how to operate your payroll management system. 

Moreover, payroll software is a good starting ground for business owners with no background in payroll management. The software providers include onboarding to help train business owners to handle and learn more about payroll. 

Online Payroll Services at Unloop 

If you can’t decide which payroll service to get, Unloop offers payroll solutions for small businesses. Here are some inclusions that come with our payroll service. 

  • We’ll handle paying your employees for you. We will link your business to a cloud-based payroll system and manage everything for you. 
  • We can easily generate important reports and statements and send them to your employees for proper tax filing. 
  • We automate everything so you can easily organize and access reports when in need. 
  • We use the best payroll software suitable for your business. You have the option to use payroll software like Gusto, Quickbooks, Paychex, BambooHR, Humi, and Wagepoint. 
  • We have three different pricing points to cater to businesses of all sizes.

Final Thoughts 

Payroll may be the most tedious department when owning a business, and simple errors can lead to a series of issues spreading through the company. We hope these common mistakes help you build a more reliable team for your payroll department. Moreover, take advantage of affordable payroll services and software for more efficient payroll management. If you’re looking for expert help for your growing business, Unloop has more to offer besides our payroll services. We have bookkeeping services, tax filing, and business forecasting. So book a call with our experts, and let's talk about what we can do for your business.

Read more

Have you made it a habit to check your accounting dashboard to see where your business is financially? This is a good start as it lets you keep an eye on your goals, milestones, achievements, and points for improvement. You can continue best practices that allow you to get more sales and lower business costs. At the same time, you can identify the pain points and address them as soon as you can before they cause detrimental effects on your business finances. 

On top of tracking your finances, there is another business practice that can help you even further—business forecasting. In this blog post, we’ll explain what it is and how bookkeeping can help you achieve forecast accuracy.

Business Forecasting Basics

The Basics

As the name suggests, business forecasting is the practice of predicting how your finances will look at a specific time in the future. You’ll want to see predictions for future sales, future events, and future trends. The forecasts can be done quarterly, annually, or even every couple of years. Metrics and variables like sales, operational costs, income, expenses, and revenue are often the essential information collected and dissected. 

Forecast findings, especially market trends, help business owners like you set realistic goals and doable action plans to achieve or exceed the data. Depending on the business forecasting method, forecasters rely on various hard numerical data or information from experts and surveys. Businesses do this to ensure their business will thrive, remain relevant, and rise against the competition.

Quick Step-By-Step

Here are the steps to keep in mind for the forecasting process to be organized. 

  • Identify the Problem: Know the reason and the goal of your forecast and what you want to predict.
  • Zero in on Variables: Check which business variables will give you the answer. 
  • Pick a Forecasting Method: Know whether a quantitative or qualitative method will help you get the answers or achieve your forecasting goal.
  • Analyze Findings: Once you have collected data, forecasting begins. It’s best to have software and business analytics to generate accurate predictions and reports quickly.
  • Verify Outcomes: Do not forget to verify whether your forecast came to fruition and check discrepancies if the prediction did not come to life.
forecasting in business

Business Forecasting Methods

There are two main forecasting models for business, and there are subtypes under them. They can help you with demand forecasting, sales forecasting, cash flow forecasting, and even scenario planning for you to make smarter decisions for your business. Check out the difference between quantitative and qualitative methods.

Qualitative Forecasting

The qualitative method relies less on numbers but more on the observations of subject matter experts and opinions of specific groups of people. This method is best used for short-term predictions when the business doesn’t have substantive historical data. 

Under its wing are two other types: market research and the Delphi method. Market research involves interviewing or surveying individuals and groups to know the marketability of a product to be launched.

On the other hand, the Delphi method relies on experts’ predictions. Think of this method as taking advice from individuals with indisputable track records and experience in the field of business you are working in.

Quantitative Forecasting

Meanwhile, if your company has solid financial transaction records and you want to create forecasts based on hard data, you can use a quantitative method. This method solely relies on the variables you choose and the numbers corresponding to them, with no human opinions involved. Long term forecasts can be done using this method.

There are three more approaches used quantitatively: the indicator approach, econometric forecasting model, and time series. The indicator approach sees the relationship between variables, so when one indicator changes, another number will follow. 

On the other hand, the econometric model is more targeted and doesn’t assume relationships between variables unless tested and backed by data. Lastly, if you want to see trends and forecasts in a particular period, use a time series analysis.

Benefits of Good Bookkeeping in Forecasting

Business forecasting plays an important role in defining your company's future, so the goal should always be to get it right. And bookkeeping plays a huge part in achieving this. Forecasting will be much quicker if you have your bookkeeping and accounting already running. Check out why here.

High Trust in Data Accuracy

Historical data is the core of quantitative business forecasting. Having the correct numbers is a must, which is only possible through proper bookkeeping. A tag team between a bookkeeper and the best bookkeeping and accounting software ensures all transactions are recorded. Records in documents and those in the books should always match. With it, the data will also be validated as bookkeepers will constantly check for any financial discrepancies. 

Launch a Quantitative Forecast Anytime

One criticism about business forecasting is the reliance on old data. If the variables used in forecasting are too old, the findings may become irrelevant to the current state of your business because so many factors affecting the numbers have already changed. 

However, if you have your business bookkeeping in place, you always have fresh data to use for forecasting. Bookkeeping involves keeping records up-to-date for report generation. With this, you have a quick view of a company’s current financial health. As a result, your forecast findings will be more reliable as well.

Qualitative Business Forecasting by Experts

If you ever need to use a qualitative method for your forecast, opinions from experts or a team to run market research, accountants and bookkeepers help immensely. Bookkeepers will handle the organization of the data you get from market research. Then, the accountant, being an expert in report creation and coming up with suggestions, will give you choices and scenarios you can use for decision-making and your business plan. However, you still need to exert prior effort in interviewing and surveying people and getting ideas from experts.

business forecasting software

Tips for Collecting Accurate Data

You know by now that accurate data is essential in having a reliable business forecast. When you have bookkeepers and accountants on your team, you won’t have any problem with this. Nevertheless, it’s best to know how your company can collect and store accurate data as a business owner.

Invest in Bookkeeping and Accounting Software

Having the proper tools make data collection and storage easier. Many business forecasting software these days are integration-capable, so the data you have from other websites and applications can be stored in a single software. You can just rely on this main data source for your forecast. If you are looking for a forecasting tool, some software even makes it easy, allowing the generation of forecasts in just a few clicks.

Be Hands-on in Checking Your Books

As a business owner, you should be able to rely on reports. This means keeping an eye on the books where the data comes from. Make it a part of your daily routine to check the books and see if there are any mistakes or discrepancies. Doing so will allow you to correct them quickly before they turn into wrong reports and forecasts.

Hire Expert Bookkeepers and Accountants

You can hire in-house members who will be familiar with your day-to-day business operations. You can also have remote workers who will update your books occasionally, which costs less. Bookkeeping and accounting agencies are also available, offering complete solutions for bookkeeping, taxes, payroll, and forecasting!

Bookkeeping and Forecasting Assistance by Unloop

As a business manager, you’ll have a lot on your plate, but your finances should be on top of your priority list. It defines whether your business will thrive or fail. Forecasting in business plays an important role in foreseeing how your finances will turn out in the future. You can proactively work on solutions if you see dire forecast results, and maintain best practices or increase your efforts if your forecasts look great. 

Lighten the load and responsibilities by dedicating the task to experts. You can count on us here at Unloop! We have a team of bookkeepers and accountants who can gather accurate data for you, help you run reports, and create forecasts for your business. Does this sound promising? Give us a call now. We’d love to talk to you!

Business Forecasting and How Bookkeeping Helps
Watch Now

Have you made it a habit to check your accounting dashboard to see where your business is financially? This is a good start as it lets you keep an eye on your goals, milestones, achievements, and points for improvement. You can continue best practices that allow you to get more sales and lower business costs. At the same time, you can identify the pain points and address them as soon as you can before they cause detrimental effects on your business finances. 

On top of tracking your finances, there is another business practice that can help you even further—business forecasting. In this blog post, we’ll explain what it is and how bookkeeping can help you achieve forecast accuracy.

Business Forecasting Basics

The Basics

As the name suggests, business forecasting is the practice of predicting how your finances will look at a specific time in the future. You’ll want to see predictions for future sales, future events, and future trends. The forecasts can be done quarterly, annually, or even every couple of years. Metrics and variables like sales, operational costs, income, expenses, and revenue are often the essential information collected and dissected. 

Forecast findings, especially market trends, help business owners like you set realistic goals and doable action plans to achieve or exceed the data. Depending on the business forecasting method, forecasters rely on various hard numerical data or information from experts and surveys. Businesses do this to ensure their business will thrive, remain relevant, and rise against the competition.

Quick Step-By-Step

Here are the steps to keep in mind for the forecasting process to be organized. 

  • Identify the Problem: Know the reason and the goal of your forecast and what you want to predict.
  • Zero in on Variables: Check which business variables will give you the answer. 
  • Pick a Forecasting Method: Know whether a quantitative or qualitative method will help you get the answers or achieve your forecasting goal.
  • Analyze Findings: Once you have collected data, forecasting begins. It’s best to have software and business analytics to generate accurate predictions and reports quickly.
  • Verify Outcomes: Do not forget to verify whether your forecast came to fruition and check discrepancies if the prediction did not come to life.
forecasting in business

Business Forecasting Methods

There are two main forecasting models for business, and there are subtypes under them. They can help you with demand forecasting, sales forecasting, cash flow forecasting, and even scenario planning for you to make smarter decisions for your business. Check out the difference between quantitative and qualitative methods.

Qualitative Forecasting

The qualitative method relies less on numbers but more on the observations of subject matter experts and opinions of specific groups of people. This method is best used for short-term predictions when the business doesn’t have substantive historical data. 

Under its wing are two other types: market research and the Delphi method. Market research involves interviewing or surveying individuals and groups to know the marketability of a product to be launched.

On the other hand, the Delphi method relies on experts’ predictions. Think of this method as taking advice from individuals with indisputable track records and experience in the field of business you are working in.

Quantitative Forecasting

Meanwhile, if your company has solid financial transaction records and you want to create forecasts based on hard data, you can use a quantitative method. This method solely relies on the variables you choose and the numbers corresponding to them, with no human opinions involved. Long term forecasts can be done using this method.

There are three more approaches used quantitatively: the indicator approach, econometric forecasting model, and time series. The indicator approach sees the relationship between variables, so when one indicator changes, another number will follow. 

On the other hand, the econometric model is more targeted and doesn’t assume relationships between variables unless tested and backed by data. Lastly, if you want to see trends and forecasts in a particular period, use a time series analysis.

Benefits of Good Bookkeeping in Forecasting

Business forecasting plays an important role in defining your company's future, so the goal should always be to get it right. And bookkeeping plays a huge part in achieving this. Forecasting will be much quicker if you have your bookkeeping and accounting already running. Check out why here.

High Trust in Data Accuracy

Historical data is the core of quantitative business forecasting. Having the correct numbers is a must, which is only possible through proper bookkeeping. A tag team between a bookkeeper and the best bookkeeping and accounting software ensures all transactions are recorded. Records in documents and those in the books should always match. With it, the data will also be validated as bookkeepers will constantly check for any financial discrepancies. 

Launch a Quantitative Forecast Anytime

One criticism about business forecasting is the reliance on old data. If the variables used in forecasting are too old, the findings may become irrelevant to the current state of your business because so many factors affecting the numbers have already changed. 

However, if you have your business bookkeeping in place, you always have fresh data to use for forecasting. Bookkeeping involves keeping records up-to-date for report generation. With this, you have a quick view of a company’s current financial health. As a result, your forecast findings will be more reliable as well.

Qualitative Business Forecasting by Experts

If you ever need to use a qualitative method for your forecast, opinions from experts or a team to run market research, accountants and bookkeepers help immensely. Bookkeepers will handle the organization of the data you get from market research. Then, the accountant, being an expert in report creation and coming up with suggestions, will give you choices and scenarios you can use for decision-making and your business plan. However, you still need to exert prior effort in interviewing and surveying people and getting ideas from experts.

business forecasting software

Tips for Collecting Accurate Data

You know by now that accurate data is essential in having a reliable business forecast. When you have bookkeepers and accountants on your team, you won’t have any problem with this. Nevertheless, it’s best to know how your company can collect and store accurate data as a business owner.

Invest in Bookkeeping and Accounting Software

Having the proper tools make data collection and storage easier. Many business forecasting software these days are integration-capable, so the data you have from other websites and applications can be stored in a single software. You can just rely on this main data source for your forecast. If you are looking for a forecasting tool, some software even makes it easy, allowing the generation of forecasts in just a few clicks.

Be Hands-on in Checking Your Books

As a business owner, you should be able to rely on reports. This means keeping an eye on the books where the data comes from. Make it a part of your daily routine to check the books and see if there are any mistakes or discrepancies. Doing so will allow you to correct them quickly before they turn into wrong reports and forecasts.

Hire Expert Bookkeepers and Accountants

You can hire in-house members who will be familiar with your day-to-day business operations. You can also have remote workers who will update your books occasionally, which costs less. Bookkeeping and accounting agencies are also available, offering complete solutions for bookkeeping, taxes, payroll, and forecasting!

Bookkeeping and Forecasting Assistance by Unloop

As a business manager, you’ll have a lot on your plate, but your finances should be on top of your priority list. It defines whether your business will thrive or fail. Forecasting in business plays an important role in foreseeing how your finances will turn out in the future. You can proactively work on solutions if you see dire forecast results, and maintain best practices or increase your efforts if your forecasts look great. 

Lighten the load and responsibilities by dedicating the task to experts. You can count on us here at Unloop! We have a team of bookkeepers and accountants who can gather accurate data for you, help you run reports, and create forecasts for your business. Does this sound promising? Give us a call now. We’d love to talk to you!

Read more

More than half of small businesses don't make it during the first years in the ecommerce industry. A big part of that has to do with cash flow problems such as fixed costs and inventory. 

Are you offering products online? Then, finding ways to streamline your accounting and inventory management processes is important. That's where QuickBooks inventory software comes in. In this blog post, we'll discuss why QuickBooks is such a valuable tool for online businesses and how you can get started using it today. 

Quick Check on Your Inventory Management System

Every business needs some inventory, whether it's raw materials for manufacturing or finished products for retail. And keeping track of that inventory takes a lot of organization. That's why you need the QuickBooks inventory management system.

An inventory management system helps online businesses order, store, and sell inventory without the hassle of manually checking them. Software programs like QuickBooks and Xero have their own inventory software. What effective features should you look for?

  • Inventory tracking with barcode or RFID scanning 
  • Purchase orders
  • Order management
  • Transfer management
  • Reporting and analytics
  • Shipping and logistics

Advanced Features of QuickBooks Inventory Software

Some may opt for third-party app integrations for QuickBooks or another inventory management software altogether. But QuickBooks has a ton of inventory system features that you can take advantage of.

#1. Real-Time Inventory Tracking

Have you ever received late notification that your inventory level is low? Or have you ever had too much or too few purchase orders? These are some of the issues of being unable to keep track of your inventory count in real-time.

To maintain the sales order and purchase order flow, you must have a clear view of what inventory you have on hand at all times and to the second. This can be a challenge, particularly for businesses with large and changing inventory items.

Fortunately, QuickBooks offers an advanced inventory tool. With it, tracking and updating your items immediately has never been easier. 

This solution allows you to audit inventory even with your warehouses closed for the day. Plus, you can gain deep business insights with customizable inventory reports. This fast and accurate tracking of inventory will benefit your small business in the long run. 

#2. Multichannel Tracking

In the past, tracking inventory levels was a relatively simple task if you only sold through one channel. 

But, nowadays, many businesses sell through multiple platforms, including online stores, brick-and-mortar retail stores, and even social media platforms like Instagram. Thus, scaling your online business to multiple channels requires more inventory management systems. Thankfully, there's a neat feature called multichannel tracking.

Multichannel tracking allows you to follow your inventory as it's sold across multiple channels. You don't need to be confused about which platform still has enough inventory items and which one has none. In addition, multichannel tracking can also help you identify which sales channels are performing the best to focus your attention on those channels. 

If you don't have a multichannel tracking feature on your accounting software or even on QuickBooks, now is the time to add it. It could just be the key to streamlining your inventory management and ensuring that your business is always running smoothly.

#3. Batch and Expiry Tracking

Are your products prone to spoilage? You might need this advanced inventory feature for your small business. 

Batch or lot tracking is a process whereby products are assigned a unique identifier that allows them to be traced back to the batch or lot in which they were produced. This information can be used to track where products are sold, how they are used, and when they need to be replaced. 

When it comes to customer relations, batch or lot tracking can be used to identify which products were sold to which customers. You can use this data to send replacement products or even market them for a lower price on future purchases.

Regarding business workflow, batch or lot tracking can help identify where bottlenecks occur in the production process, improving efficiency and reducing waste. Overall, batch or lot tracking offers many benefits that can improve customer relations, reduce discounts and spoilage, and improve business workflow.

#4. CRM

QuickBooks understands that customers willing to pay are the lifeline of any business. As such, they have developed a CRM feature to help your business keep track of customer behavior and preferences. 

This feature automatically records each customer's order and order history, so you can better understand what your target audience wants. By having this information on hand, you can provide a more personalized customer experience or create a new line of products that answers your audience's needs. 

As a result, QuickBooks' CRM feature can help you build stronger relationships with your customers and grow your business.

The Best Quickbooks Version for Advanced Inventory Tracking

Millions of business owners use QuickBooks due to its robust features in accounting and bookkeeping and specifically for checking stock inventory. But, as you know, QuickBooks offers several different versions, and the best inventory tracking software for QuickBooks depends on the business's specific needs. 

If you're a growing business, you might wonder if inventory software for QuickBooks Online is good for inventory management. The short answer is not really

QuickBooks Online is great for microbusinesses and small businesses, but it's not designed specifically for advanced inventory tracking. 

There are other software versions of QuickBooks better suited for that purpose. However, if you're starting and don't have much money to spend on software, QuickBooks Online can be a decent option. Just be aware that you might need to subscribe to QuickBooks Online Plus to get its inventory management feature. 

The QuickBooks Enterprise Solution is the most comprehensive option and includes advanced pricing rules and inventory alerts. The QuickBooks Pro or QuickBooks Premier versions may be more appropriate for businesses that need less comprehensive inventory tracking. 

Another QuickBooks inventory system worth checking out is QuickBooks Commerce. With features like automatic stock level updates and prompt reordering, you'll always be on top of your inventory, even if you have multiple warehouses and inventory in multiple currencies. 

Plus, QuickBooks Commerce's inventory management software integrates seamlessly with QuickBooks Online so that you can keep all of your inventory information in one place. Whichever version you choose, QuickBooks can help businesses to keep track of their inventory and make more informed decisions about stocking levels and pricing.

Stay In Full Stock With Unloop

If you're an online business, keeping your inventory levels from running low is important. Not only can this lead to unhappy customers and lost sales, but it can also be costly if you have to restock items at the last minute. Luckily, QuickBooks has versatile versions that can help you manage your stock more efficiently.

QuickBooks is a great tool for managing your finances, but it can be a bit overwhelming if you're not an accounting expert. That's where Unloop comes in. 

We complement QuickBooks by providing easy-to-understand financial reports and analysis. We also offer a range of creative solutions for managing your money, so you can focus on running your business instead of worrying about your finances.

We have affordable bookkeeping services, so why wait? Get in touch with us today and find out how we can help you keep your business in full stock!

Why Online Businesses Need QuickBooks Inventory Software
Watch Now

More than half of small businesses don't make it during the first years in the ecommerce industry. A big part of that has to do with cash flow problems such as fixed costs and inventory. 

Are you offering products online? Then, finding ways to streamline your accounting and inventory management processes is important. That's where QuickBooks inventory software comes in. In this blog post, we'll discuss why QuickBooks is such a valuable tool for online businesses and how you can get started using it today. 

Quick Check on Your Inventory Management System

Every business needs some inventory, whether it's raw materials for manufacturing or finished products for retail. And keeping track of that inventory takes a lot of organization. That's why you need the QuickBooks inventory management system.

An inventory management system helps online businesses order, store, and sell inventory without the hassle of manually checking them. Software programs like QuickBooks and Xero have their own inventory software. What effective features should you look for?

  • Inventory tracking with barcode or RFID scanning 
  • Purchase orders
  • Order management
  • Transfer management
  • Reporting and analytics
  • Shipping and logistics

Advanced Features of QuickBooks Inventory Software

Some may opt for third-party app integrations for QuickBooks or another inventory management software altogether. But QuickBooks has a ton of inventory system features that you can take advantage of.

#1. Real-Time Inventory Tracking

Have you ever received late notification that your inventory level is low? Or have you ever had too much or too few purchase orders? These are some of the issues of being unable to keep track of your inventory count in real-time.

To maintain the sales order and purchase order flow, you must have a clear view of what inventory you have on hand at all times and to the second. This can be a challenge, particularly for businesses with large and changing inventory items.

Fortunately, QuickBooks offers an advanced inventory tool. With it, tracking and updating your items immediately has never been easier. 

This solution allows you to audit inventory even with your warehouses closed for the day. Plus, you can gain deep business insights with customizable inventory reports. This fast and accurate tracking of inventory will benefit your small business in the long run. 

#2. Multichannel Tracking

In the past, tracking inventory levels was a relatively simple task if you only sold through one channel. 

But, nowadays, many businesses sell through multiple platforms, including online stores, brick-and-mortar retail stores, and even social media platforms like Instagram. Thus, scaling your online business to multiple channels requires more inventory management systems. Thankfully, there's a neat feature called multichannel tracking.

Multichannel tracking allows you to follow your inventory as it's sold across multiple channels. You don't need to be confused about which platform still has enough inventory items and which one has none. In addition, multichannel tracking can also help you identify which sales channels are performing the best to focus your attention on those channels. 

If you don't have a multichannel tracking feature on your accounting software or even on QuickBooks, now is the time to add it. It could just be the key to streamlining your inventory management and ensuring that your business is always running smoothly.

#3. Batch and Expiry Tracking

Are your products prone to spoilage? You might need this advanced inventory feature for your small business. 

Batch or lot tracking is a process whereby products are assigned a unique identifier that allows them to be traced back to the batch or lot in which they were produced. This information can be used to track where products are sold, how they are used, and when they need to be replaced. 

When it comes to customer relations, batch or lot tracking can be used to identify which products were sold to which customers. You can use this data to send replacement products or even market them for a lower price on future purchases.

Regarding business workflow, batch or lot tracking can help identify where bottlenecks occur in the production process, improving efficiency and reducing waste. Overall, batch or lot tracking offers many benefits that can improve customer relations, reduce discounts and spoilage, and improve business workflow.

#4. CRM

QuickBooks understands that customers willing to pay are the lifeline of any business. As such, they have developed a CRM feature to help your business keep track of customer behavior and preferences. 

This feature automatically records each customer's order and order history, so you can better understand what your target audience wants. By having this information on hand, you can provide a more personalized customer experience or create a new line of products that answers your audience's needs. 

As a result, QuickBooks' CRM feature can help you build stronger relationships with your customers and grow your business.

The Best Quickbooks Version for Advanced Inventory Tracking

Millions of business owners use QuickBooks due to its robust features in accounting and bookkeeping and specifically for checking stock inventory. But, as you know, QuickBooks offers several different versions, and the best inventory tracking software for QuickBooks depends on the business's specific needs. 

If you're a growing business, you might wonder if inventory software for QuickBooks Online is good for inventory management. The short answer is not really

QuickBooks Online is great for microbusinesses and small businesses, but it's not designed specifically for advanced inventory tracking. 

There are other software versions of QuickBooks better suited for that purpose. However, if you're starting and don't have much money to spend on software, QuickBooks Online can be a decent option. Just be aware that you might need to subscribe to QuickBooks Online Plus to get its inventory management feature. 

The QuickBooks Enterprise Solution is the most comprehensive option and includes advanced pricing rules and inventory alerts. The QuickBooks Pro or QuickBooks Premier versions may be more appropriate for businesses that need less comprehensive inventory tracking. 

Another QuickBooks inventory system worth checking out is QuickBooks Commerce. With features like automatic stock level updates and prompt reordering, you'll always be on top of your inventory, even if you have multiple warehouses and inventory in multiple currencies. 

Plus, QuickBooks Commerce's inventory management software integrates seamlessly with QuickBooks Online so that you can keep all of your inventory information in one place. Whichever version you choose, QuickBooks can help businesses to keep track of their inventory and make more informed decisions about stocking levels and pricing.

Stay In Full Stock With Unloop

If you're an online business, keeping your inventory levels from running low is important. Not only can this lead to unhappy customers and lost sales, but it can also be costly if you have to restock items at the last minute. Luckily, QuickBooks has versatile versions that can help you manage your stock more efficiently.

QuickBooks is a great tool for managing your finances, but it can be a bit overwhelming if you're not an accounting expert. That's where Unloop comes in. 

We complement QuickBooks by providing easy-to-understand financial reports and analysis. We also offer a range of creative solutions for managing your money, so you can focus on running your business instead of worrying about your finances.

We have affordable bookkeeping services, so why wait? Get in touch with us today and find out how we can help you keep your business in full stock!

Read more

Every business needs a reliable bookkeeping system. This system is meant to help owners make critical decisions that can eventually lead to business growth. Unfortunately, a lot of small business owners don't understand the value of bookkeeping, which leads to their business’s early demise. Proper record keeping and accounting are essential in running a business.

Ecommerce accounting will require licensed professionals. However, bookkeeping is much simpler, and even an ecommerce business owner can do it. If you are interested in handling the bookkeeping of your online store, you can learn bookkeeping by following these simple steps.

Bookkeeping for Ecommerce Business Owners

Unlike accounting, which requires a degree and licensure examinations, everyone can be a bookkeeper. You become a qualified bookkeeper after attending a few training sessions and learning about financial statements like income statements, cash flow statements, and balance sheets. 

If you wish to effectively handle the finances of your company, make sure you comply with these guidelines.

Establish a Bookkeeping System

Deciding on what bookkeeping system to use is crucial in the early stages of bookkeeping. Forgetting to record a transaction, losing a receipt, or making the same entries for the same transaction can lead to misinterpretations of your financial data, which can negatively affect your business decisions.

Establishing a bookkeeping system will help you stay consistent. You can choose to record your transactions manually. However, modern times require modern solutions, and utilizing bookkeeping software is best to ensure all your financial transactions are recorded, organized, and stored. 

Some of the best bookkeeping software for ecommerce are QuickBooks and FreshBooks, which not only record transactions and supply financial statements but also double as accounting software. It does take some time to integrate your operations and fully understand how the software runs. Therefore, we recommend using free trial versions of the software to see if it suits your bookkeeping needs.

The other method is to use a spreadsheet. You can write your business transactions in a notebook or use a computer to record financial data. Although this method is tedious, time-consuming, and more prone to errors, it is still an effective way to start tracking the money that goes in and out of your business.

business financial records 

Record All Financial Transactions

Recording financial transactions may sound easy, but keeping them consistent and accurate may be challenging as time goes on. As your business grows and more transactions occur, you must find an efficient way to keep up. Here are some tips to help you properly record your transactions.

Use One Accounting Method

It’s simpler to maintain track of your business finances if you record everything properly. There are various things you can do to be sure you are maintaining your records. First, use the same accounting method for all your bookkeeping entries. For the cash accounting method, you record financial transactions when you receive or spend money. 

On the other hand, there’s the accrual accounting method where you record your accounts receivable and accounts payable before you physically receive or pay the cash. This means that you can already record the transactions even if the money does not reach your accounts yet. 

The cash accounting method is much simpler to do, and so it’s good to adopt in the early phases of your small business. But as your business grows and expands, accrual accounting will better tell you the overall financial health of your company. 

Double-Entry Bookkeeping for Ecommerce

Another practice you should do for proper ecommerce bookkeeping is double-entry bookkeeping. A business transaction happens in two ways, and both should be recorded for accuracy. For instance, in inventory management, you should record the acquisition of a product as a drop in cash and an increase in inventory.

Alternatively, when someone buys from your business, you should record it as a decrease in inventory and an increase in sales. The ideal method to monitor your company's cash flow is using double-entry bookkeeping.

You can also record transactions in a journal, but the rise of bookkeeping software makes using a general ledger or using the journal method obsolete. However, you can still use this as a backup record in urgent situations. 

Post Transactions to Ledgers

Your ledgers are the heart of bookkeeping. Without them, you won’t have proof of the transactions that happen in your business. Regular updates will give a clear view of your cash flow and will help with your accounting. 

Have Separate Ledgers for Your Accounts

The success of ecommerce bookkeeping is in organizing and categorizing your accounts. Your business's finances come from many financial transactions. One can start small by generalizing records for online sales or records in inventory tracking, as long as it gives you a full and clear view of the money that goes around inside your business. 

As your business grows, here are some of the accounts your bookkeeping should cover: 

  • Account payables 
  • Account receivables 
  • Cost of sales 
  • Payroll 
  • Profit 
  • Inventory 
  • Equity 

Post and Analyze Ledgers Regularly

Updating your ledgers depends on the volume of your transactions. You can update ledgers daily, weekly, and on a monthly basis. Regardless of how often you post on your ledgers, you must be consistent to avoid getting overwhelmed when the accounting period comes. 

After all these updates, consult with an accountant to create financial reports for your small business. From here, you can see if your business is growing positively, if you need to enact strategies to improve further, or if you need to change any processes that aren’t working.

ecommerce bookkeeping 

Ecommerce Bookkeeping Services at Unloop

If bookkeeping is confusing for you, then getting expert help is the best thing you can do for your business. Unloop has the services you need. Here are some of what we include in our ecommerce bookkeeping services: 

  • Providing you with monthly financial documents like income statements, cash flow statements, and balance sheets. 
  • Integrating your business to cloud-based bookkeeping and accounting software like QuickBooks Online or Xero. 
  • Customizing analytics and KPIs that are tailored to your business.
  • Accrual accounting methods for all of your financial reports, plus FIFO and WAC methods for inventory and COGS.
  • In-depth customer service via Slack.

Conclusion 

Bookkeeping and accounting are two essential parts of running a business, but most business owners only see accounting as essential. Bookkeeping seems like a menial task that’s only around for keeping records of financial transactions, but it’s the basis of accounting as it keeps your business balanced and helps you make critical business decisions. 

For more business-related services, visit Unloop. We offer services on accounting, forecasting, payroll, and taxes. So book a call with us now and talk to our experts to see what we can do for your business.

Ecommerce Bookkeeping Basics for Small Business Owners
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Every business needs a reliable bookkeeping system. This system is meant to help owners make critical decisions that can eventually lead to business growth. Unfortunately, a lot of small business owners don't understand the value of bookkeeping, which leads to their business’s early demise. Proper record keeping and accounting are essential in running a business.

Ecommerce accounting will require licensed professionals. However, bookkeeping is much simpler, and even an ecommerce business owner can do it. If you are interested in handling the bookkeeping of your online store, you can learn bookkeeping by following these simple steps.

Bookkeeping for Ecommerce Business Owners

Unlike accounting, which requires a degree and licensure examinations, everyone can be a bookkeeper. You become a qualified bookkeeper after attending a few training sessions and learning about financial statements like income statements, cash flow statements, and balance sheets. 

If you wish to effectively handle the finances of your company, make sure you comply with these guidelines.

Establish a Bookkeeping System

Deciding on what bookkeeping system to use is crucial in the early stages of bookkeeping. Forgetting to record a transaction, losing a receipt, or making the same entries for the same transaction can lead to misinterpretations of your financial data, which can negatively affect your business decisions.

Establishing a bookkeeping system will help you stay consistent. You can choose to record your transactions manually. However, modern times require modern solutions, and utilizing bookkeeping software is best to ensure all your financial transactions are recorded, organized, and stored. 

Some of the best bookkeeping software for ecommerce are QuickBooks and FreshBooks, which not only record transactions and supply financial statements but also double as accounting software. It does take some time to integrate your operations and fully understand how the software runs. Therefore, we recommend using free trial versions of the software to see if it suits your bookkeeping needs.

The other method is to use a spreadsheet. You can write your business transactions in a notebook or use a computer to record financial data. Although this method is tedious, time-consuming, and more prone to errors, it is still an effective way to start tracking the money that goes in and out of your business.

business financial records 

Record All Financial Transactions

Recording financial transactions may sound easy, but keeping them consistent and accurate may be challenging as time goes on. As your business grows and more transactions occur, you must find an efficient way to keep up. Here are some tips to help you properly record your transactions.

Use One Accounting Method

It’s simpler to maintain track of your business finances if you record everything properly. There are various things you can do to be sure you are maintaining your records. First, use the same accounting method for all your bookkeeping entries. For the cash accounting method, you record financial transactions when you receive or spend money. 

On the other hand, there’s the accrual accounting method where you record your accounts receivable and accounts payable before you physically receive or pay the cash. This means that you can already record the transactions even if the money does not reach your accounts yet. 

The cash accounting method is much simpler to do, and so it’s good to adopt in the early phases of your small business. But as your business grows and expands, accrual accounting will better tell you the overall financial health of your company. 

Double-Entry Bookkeeping for Ecommerce

Another practice you should do for proper ecommerce bookkeeping is double-entry bookkeeping. A business transaction happens in two ways, and both should be recorded for accuracy. For instance, in inventory management, you should record the acquisition of a product as a drop in cash and an increase in inventory.

Alternatively, when someone buys from your business, you should record it as a decrease in inventory and an increase in sales. The ideal method to monitor your company's cash flow is using double-entry bookkeeping.

You can also record transactions in a journal, but the rise of bookkeeping software makes using a general ledger or using the journal method obsolete. However, you can still use this as a backup record in urgent situations. 

Post Transactions to Ledgers

Your ledgers are the heart of bookkeeping. Without them, you won’t have proof of the transactions that happen in your business. Regular updates will give a clear view of your cash flow and will help with your accounting. 

Have Separate Ledgers for Your Accounts

The success of ecommerce bookkeeping is in organizing and categorizing your accounts. Your business's finances come from many financial transactions. One can start small by generalizing records for online sales or records in inventory tracking, as long as it gives you a full and clear view of the money that goes around inside your business. 

As your business grows, here are some of the accounts your bookkeeping should cover: 

  • Account payables 
  • Account receivables 
  • Cost of sales 
  • Payroll 
  • Profit 
  • Inventory 
  • Equity 

Post and Analyze Ledgers Regularly

Updating your ledgers depends on the volume of your transactions. You can update ledgers daily, weekly, and on a monthly basis. Regardless of how often you post on your ledgers, you must be consistent to avoid getting overwhelmed when the accounting period comes. 

After all these updates, consult with an accountant to create financial reports for your small business. From here, you can see if your business is growing positively, if you need to enact strategies to improve further, or if you need to change any processes that aren’t working.

ecommerce bookkeeping 

Ecommerce Bookkeeping Services at Unloop

If bookkeeping is confusing for you, then getting expert help is the best thing you can do for your business. Unloop has the services you need. Here are some of what we include in our ecommerce bookkeeping services: 

  • Providing you with monthly financial documents like income statements, cash flow statements, and balance sheets. 
  • Integrating your business to cloud-based bookkeeping and accounting software like QuickBooks Online or Xero. 
  • Customizing analytics and KPIs that are tailored to your business.
  • Accrual accounting methods for all of your financial reports, plus FIFO and WAC methods for inventory and COGS.
  • In-depth customer service via Slack.

Conclusion 

Bookkeeping and accounting are two essential parts of running a business, but most business owners only see accounting as essential. Bookkeeping seems like a menial task that’s only around for keeping records of financial transactions, but it’s the basis of accounting as it keeps your business balanced and helps you make critical business decisions. 

For more business-related services, visit Unloop. We offer services on accounting, forecasting, payroll, and taxes. So book a call with us now and talk to our experts to see what we can do for your business.

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About unloop
Unloop is the first and only accounting firm exclusively servicing ecommerce and inventory businesses in the US and Canada. With the power of people and technology, our team dives deep into COGS and inventory accounting.. You are paired with a dedicated bookkeeping team that prepares accurate financial statements, financial forecasts, and can also pay bills or run payroll for you. Come tax time, everything is organized and ready to go, so you don't need to worry. Book a call with an ecommerce accountant today to learn more.
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