As an entrepreneur running an online business, understanding the critical differences between accrual and cash accounting is essential. These two accounting methods seem similar but fundamentally different in how financial transactions are recorded.
Accrual accounting income and expenses as transactions happen, whether you have or have not received cash.
In contrast, cash accounting records revenues and expenses only when cash transactions have been made.
This article will provide an overview of these two accounting methods and their respective strengths and weaknesses to help you choose the right approach for your online business. So, hang on to learn more!
Cash accounting is when you record revenue and expenses when the cash is in. Accrual accounting is when you record transactions as soon as you earn or owe them.
To give you a better idea, let's bring out a sample transaction from MPOM Pet Supplies' general journal.
| Cash Basis Accounting | ||
| Date 2022 | Account Title and Remarks | Amount |
| July 30 | Cash Sales Revenue(to record cash collected) | $5,000 |
| Accrual Accounting | ||
| Date 2022 | Account Title and Remarks | Amount |
| July 1 | Accountable receivable Sales Revenue(to record sales) | $5,000 |
| July 30 | Cash Accounts receivable(to record cash collected) | $5,000 |
The cash basis accounting table shows that the transaction was only recorded on July 30. That's because that is the only time they received actual money. However, in an accrual accounting table, the accounts receivable are already recorded on July 1, even if the funds are only received on July 30.
Cash basis accounting has no accounts receivable and accounts payable. You input the transaction only when cash is available and when you receive payment. Meanwhile, in accrual accounting, the transaction is recorded the moment the transaction is made, even without the actual money.
Cash-based accounting is the simplest and most straightforward way to track financial transactions. The central idea is to record revenue as soon as it's received and expenses as soon as they're paid instead of waiting for invoices or withdrawals. Check the great things about using the cash-based accounting method:
Money goes in, and money goes out. When it does, you record it. It's easy to manage your online business this way, and you don't need to hire a professional accountant to do the job. You don't need to adjust if a customer doesn't pay or you haven't paid your supplier yet. It's because there's no initial record of it while it’s unpaid.
With the cash basis accounting method, you get an upfront report of how much you earned or paid during that period. This is perfect when making short-term cash flow statements since you only record ongoing and outgoing cash transactions. You get the net income or net loss quickly.
If you only keep records of cash transactions, you may have the upper hand when you need to file for your business taxes. It's because you can lower your tax liabilities by slowing down your revenues or speeding up your expenses. Of course, this is all legal.
Cash-based accounting is a recording method that relies solely on cash inflows and outflows. This may offer a straightforward approach but can have significant drawbacks. These would include a lack of real-time insights, difficulty tracking accounts receivable, and potential inaccuracies in financial reporting.
| Month | May | June | July |
| Revenue | $15,000 | $2,000 | $5,000 |
***MPOM Pet Supplies Comparative Income Statement for May, June, July (in thousands of US dollars)
In this comparative income statement, MPOM received the most income during May, making it look like the online business is doing well. On the other hand, coming June and July, its profits fluctuated. This might suggest the company was busy in May, but the additional two months were stale.
What happens if it only gives a rough idea of your business standing in given periods?
The small business owner might make wrong business decisions. They may reduce inventory in June and July since no one was buying their products during those months. They could also make more purchase orders for May since it's the busiest, thus adding more billables that month. When in truth, there were accounts payable and accounts receivable that weren't taken into consideration in all months.
You can make the best decisions for your company when you only see revenue and not the totality of your business's financial health.
Whether your online business is slow or not, it's impossible to remember every cash transaction coming in and going out of your business. So, if you review your last year's income statement, you won't even remember why your revenue was low, or your expenses were high back then.
Generally Accepted Accounting Principles (GAAP) are accounting standards businesses and the US SEC commonly adopt. Cash-basis accounting is a non-GAAP-compliant method, but it doesn't mean it is illegal.
GAAP does not function as legal regulations. Instead, they serve as the standard accounting guidelines set by accounting boards that businesses adhere to. According to the IRS, if you earn over $25 million in sales in over three years, you must use the accrual accounting method.
Are you a sole proprietor starting an online business? You may have a passion for running a business but don't know how to do accounting. If so, the cash method is for you.
Meanwhile, you can use cash basis accounting if you are still a low-income or cash-strapped company. With cash basis accounting, you'll have lower taxes since your income during this period is expectedly low.
Accrual accounting recognizes revenue and expenses as soon as they are earned or billed. Once your customer buys your product on installment, you record the transaction when the order is completed.
Meanwhile, expenses, such as raw materials for inventory, are recorded as soon as you receive them. Therefore, line items such as accounts payable and accounts receivable are particulars in your books.
Accrual accounting is not known for ease of use, but there are many advantages to using the accrual method of accounting for your online business. Here are some of them:
When accounts payable and accounts receivable are reflected on a financial statement, you have a more accurate view of your company's assets and liabilities. You'll be provided with these details when you practice accrual accounting. Having a holistic view of your company's finances will allow you to make accurate decisions that will positively impact your finances.
Accrual basis accounting allows you to gauge and plan for peak months of your business operations as you can see your business's profitability and performance clearer.
Did you receive a lot of orders for the month? Or did you make several dealings with the supplier at that time? The accrual method shows you the exact movements of your business operations so you can make better financial decisions in the long run.
If you're not hitting the $25 million mark yet, you can still use the cash basis method for recording your income and expenses. But beyond that, accrual accounting is what the board of accounting regards as a standard. Moreover, banks, lenders, and investors prefer this GAAP-compliant accounting method over cash basis accounting.
Your business may just be starting, but you can triple your revenue in a few years, thus earning over $25 million. So, if you use accrual accounting from the beginning, you do not need to change accounting methods as you already comply with IRS regulations.
Accrual basis accounting can help business owners like you determine your financial position accurately, but it also has several drawbacks. Knowing these significant drawbacks will allow you to work on your accounting system to ensure smooth accounting proactively.
For some, bookkeeping is already daunting, and it gets even more complicated with accrual accounting's daily records, end-of-the-month, and end-of-the-year reports. You need to learn this accounting method well to use it properly.
You can see that your income or profit and loss statement looks good using the accrual method. However, upon checking your cash flow statement, your cash is almost $0. That's because when you look closely at your P&L statement, your accounts receivable is relatively high. After all, your customers haven't fully paid yet.
Following the accrual accounting method keeps track of your profitability but not your actual cash. Thus, making cash flow statements that go hand-in-hand with your P&L is essential.
Despite its tedious workflow, accrual accounting is still the standard. Small business owners choose to work with this method because they live in some states in America, like New York, requiring accrual basis tax returns. You can select accrual accounting at your own will, as you must switch to the accrual method once you begin earning larger profits.
Each method has its strengths and weaknesses, and choosing the right approach for your online business depends on your specific needs and goals.
Cash accounting is straightforward. It is perfect for small business owners with limited resources who have just launched their venture. In contrast, accrual accounting provides accurate financial reporting that reflects your business's current financial position, making it ideal for business owners looking for better projections and decision-making in the long run.
Whether you choose cash accounting or accrual accounting, it's essential to understand the method's drawbacks and ensure that your accounting system works smoothly.
Don't waste your time deciding which accounting method to use. We here at Unloop can assist you with your bookkeeping and accounting needs. Book a call with us today!
As an entrepreneur running an online business, understanding the critical differences between accrual and cash accounting is essential. These two accounting methods seem similar but fundamentally different in how financial transactions are recorded.
Accrual accounting income and expenses as transactions happen, whether you have or have not received cash.
In contrast, cash accounting records revenues and expenses only when cash transactions have been made.
This article will provide an overview of these two accounting methods and their respective strengths and weaknesses to help you choose the right approach for your online business. So, hang on to learn more!
Cash accounting is when you record revenue and expenses when the cash is in. Accrual accounting is when you record transactions as soon as you earn or owe them.
To give you a better idea, let's bring out a sample transaction from MPOM Pet Supplies' general journal.
| Cash Basis Accounting | ||
| Date 2022 | Account Title and Remarks | Amount |
| July 30 | Cash Sales Revenue(to record cash collected) | $5,000 |
| Accrual Accounting | ||
| Date 2022 | Account Title and Remarks | Amount |
| July 1 | Accountable receivable Sales Revenue(to record sales) | $5,000 |
| July 30 | Cash Accounts receivable(to record cash collected) | $5,000 |
The cash basis accounting table shows that the transaction was only recorded on July 30. That's because that is the only time they received actual money. However, in an accrual accounting table, the accounts receivable are already recorded on July 1, even if the funds are only received on July 30.
Cash basis accounting has no accounts receivable and accounts payable. You input the transaction only when cash is available and when you receive payment. Meanwhile, in accrual accounting, the transaction is recorded the moment the transaction is made, even without the actual money.
Cash-based accounting is the simplest and most straightforward way to track financial transactions. The central idea is to record revenue as soon as it's received and expenses as soon as they're paid instead of waiting for invoices or withdrawals. Check the great things about using the cash-based accounting method:
Money goes in, and money goes out. When it does, you record it. It's easy to manage your online business this way, and you don't need to hire a professional accountant to do the job. You don't need to adjust if a customer doesn't pay or you haven't paid your supplier yet. It's because there's no initial record of it while it’s unpaid.
With the cash basis accounting method, you get an upfront report of how much you earned or paid during that period. This is perfect when making short-term cash flow statements since you only record ongoing and outgoing cash transactions. You get the net income or net loss quickly.
If you only keep records of cash transactions, you may have the upper hand when you need to file for your business taxes. It's because you can lower your tax liabilities by slowing down your revenues or speeding up your expenses. Of course, this is all legal.
Cash-based accounting is a recording method that relies solely on cash inflows and outflows. This may offer a straightforward approach but can have significant drawbacks. These would include a lack of real-time insights, difficulty tracking accounts receivable, and potential inaccuracies in financial reporting.
| Month | May | June | July |
| Revenue | $15,000 | $2,000 | $5,000 |
***MPOM Pet Supplies Comparative Income Statement for May, June, July (in thousands of US dollars)
In this comparative income statement, MPOM received the most income during May, making it look like the online business is doing well. On the other hand, coming June and July, its profits fluctuated. This might suggest the company was busy in May, but the additional two months were stale.
What happens if it only gives a rough idea of your business standing in given periods?
The small business owner might make wrong business decisions. They may reduce inventory in June and July since no one was buying their products during those months. They could also make more purchase orders for May since it's the busiest, thus adding more billables that month. When in truth, there were accounts payable and accounts receivable that weren't taken into consideration in all months.
You can make the best decisions for your company when you only see revenue and not the totality of your business's financial health.
Whether your online business is slow or not, it's impossible to remember every cash transaction coming in and going out of your business. So, if you review your last year's income statement, you won't even remember why your revenue was low, or your expenses were high back then.
Generally Accepted Accounting Principles (GAAP) are accounting standards businesses and the US SEC commonly adopt. Cash-basis accounting is a non-GAAP-compliant method, but it doesn't mean it is illegal.
GAAP does not function as legal regulations. Instead, they serve as the standard accounting guidelines set by accounting boards that businesses adhere to. According to the IRS, if you earn over $25 million in sales in over three years, you must use the accrual accounting method.
Are you a sole proprietor starting an online business? You may have a passion for running a business but don't know how to do accounting. If so, the cash method is for you.
Meanwhile, you can use cash basis accounting if you are still a low-income or cash-strapped company. With cash basis accounting, you'll have lower taxes since your income during this period is expectedly low.
Accrual accounting recognizes revenue and expenses as soon as they are earned or billed. Once your customer buys your product on installment, you record the transaction when the order is completed.
Meanwhile, expenses, such as raw materials for inventory, are recorded as soon as you receive them. Therefore, line items such as accounts payable and accounts receivable are particulars in your books.
Accrual accounting is not known for ease of use, but there are many advantages to using the accrual method of accounting for your online business. Here are some of them:
When accounts payable and accounts receivable are reflected on a financial statement, you have a more accurate view of your company's assets and liabilities. You'll be provided with these details when you practice accrual accounting. Having a holistic view of your company's finances will allow you to make accurate decisions that will positively impact your finances.
Accrual basis accounting allows you to gauge and plan for peak months of your business operations as you can see your business's profitability and performance clearer.
Did you receive a lot of orders for the month? Or did you make several dealings with the supplier at that time? The accrual method shows you the exact movements of your business operations so you can make better financial decisions in the long run.
If you're not hitting the $25 million mark yet, you can still use the cash basis method for recording your income and expenses. But beyond that, accrual accounting is what the board of accounting regards as a standard. Moreover, banks, lenders, and investors prefer this GAAP-compliant accounting method over cash basis accounting.
Your business may just be starting, but you can triple your revenue in a few years, thus earning over $25 million. So, if you use accrual accounting from the beginning, you do not need to change accounting methods as you already comply with IRS regulations.
Accrual basis accounting can help business owners like you determine your financial position accurately, but it also has several drawbacks. Knowing these significant drawbacks will allow you to work on your accounting system to ensure smooth accounting proactively.
For some, bookkeeping is already daunting, and it gets even more complicated with accrual accounting's daily records, end-of-the-month, and end-of-the-year reports. You need to learn this accounting method well to use it properly.
You can see that your income or profit and loss statement looks good using the accrual method. However, upon checking your cash flow statement, your cash is almost $0. That's because when you look closely at your P&L statement, your accounts receivable is relatively high. After all, your customers haven't fully paid yet.
Following the accrual accounting method keeps track of your profitability but not your actual cash. Thus, making cash flow statements that go hand-in-hand with your P&L is essential.
Despite its tedious workflow, accrual accounting is still the standard. Small business owners choose to work with this method because they live in some states in America, like New York, requiring accrual basis tax returns. You can select accrual accounting at your own will, as you must switch to the accrual method once you begin earning larger profits.
Each method has its strengths and weaknesses, and choosing the right approach for your online business depends on your specific needs and goals.
Cash accounting is straightforward. It is perfect for small business owners with limited resources who have just launched their venture. In contrast, accrual accounting provides accurate financial reporting that reflects your business's current financial position, making it ideal for business owners looking for better projections and decision-making in the long run.
Whether you choose cash accounting or accrual accounting, it's essential to understand the method's drawbacks and ensure that your accounting system works smoothly.
Don't waste your time deciding which accounting method to use. We here at Unloop can assist you with your bookkeeping and accounting needs. Book a call with us today!
Starting a business is a risk. However, it is exciting and it might be tempting to swim ahead into new waters in an attempt to achieve success. Unfortunately, small business owners will have a million things to do. The process of creating a product to sell is only one facet of a business. There's finances, marketing, and advertising, and business owners only have themselves to rely on most of the time.
You often need a second set of hands to help you run a business. Moreover, if there are areas of the business that you're not familiar with, getting an expert may be a wise move for your success. But many business owners are reluctant to hire professionals because of the cost. o you really need one?
Here are some important questions to ask yourself to help you decide if you need a professional accountant.
If you're a certified accountant, managing your business finances will be easy. But let's say you're a beginner in the ecommerce industry. Can you do the accounting by yourself? Assess how much you know about accounting and how sure you are that you can handle your finances efficiently and error-free.
When you encounter double-entry bookkeeping, income statements, cash flows, accounts payable and receivable, and fixed expenses, can you differentiate and identify their purposes? Business finance covers many things, so make sure you can handle whatever applies to your business if you opt not to hire a professional.
If accounting for small businesses fits in your skill set, the next thing you need to ask yourself is if you can dedicate time to manage your finances. As a business owner, you have to oversee the different parts of your business, and business owners often get heavily involved in different processes of their business.
Tasks like talking and striking deals with your suppliers, picking up goods from warehouses, fulfilling deliveries, meetings with potential partners, managing your business webpage, and answering messages about your products are just a few of the jobs you must complete daily—especially if you work alone.
After all these tasks, can you still see yourself managing your finances? Finances require accuracy and complete concentration. After a tiring day, are you still up to the task?
Handling finances also means managing your taxes. Even seasoned people in the business dread managing taxes. There are many taxes levied when you start a business, and different taxes require different declarations and forms. How well-versed are you when it comes to business taxation?
Do you know how to file income taxes? How about sales tax? Do you know the sales tax rate and laws? Do you know how sales tax collection works? You should also be familiar with filing due dates, depending if you file taxes annually or quarterly.
Furthermore, there are also tax exemptions. Do you know the laws that make your products eligible for exemption? Tax exemption can lessen the taxes you pay to the collection agency. You can allocate these funds to further develop your business through investments.
Professional accountants do have a standard rate. It may vary depending on whether you hire from accounting firms or look for a private accountant. Of course, the more experience the accountant has, the higher they will charge.
Budget is one of the factors why many business owners opt to forgo hiring professionals. On average, an accountant's hourly rate is $117. Other services like small business bookkeeping cost an average of $200. Research shows that business owners spend anywhere from $1,000 to $20,000 on accounting annually.
This price point may be daunting for individuals fresh on the market. One thing you can do is hire accountants in a part-time position. This way, you'll still get the help you need without breaking your budget. You can create a schedule when you need your accountant, instead of having them on-call five days a week.
It's easier to handle finances at the beginning of your business. But maybe you need help in other things like organizing and keeping your records clean. An accountant is distinct from a bookkeeper. A bookkeeper does not need to pass state-mandated licensing examinations or a professional accounting degree.
Bookkeepers are trained to organize and record your business’s cash flow. They record all the financial transactions so you can track the money that goes in and out of your business. In addition, they can produce financial statements and reports which can say a lot about the health of your industry.
They can provide you with balance sheets to see if your expenses are parallel with your sales so that you can plan your finances strategically. In addition, bookkeeping costs significantly less than accounting, and there are even automated bookkeeping software that won’t break the bank.
However, bookkeepers can't do what accountants do. Their main goal is to record all your financial transactions; it is an accountant's duty to interpret and analyze the data. So maybe once a month or every quarter, have your bookkeeper meet a professional accountant for a consultation.
Bookkeeping for small businesses is an advantage, but a bookkeeper’s role is limited to your cash flow—no more, no less. So what difference does a certified accountant make? Here are some of the crucial duties a qualified accountant has to perform for your business.
Ask yourselves again, “Do I need an accountant for my small business?” It's not a requirement for every business, but it's a huge advantage. At the beginning, hiring an accountant may seem unnecessary. But as your business grows and a lot of cash comes in and out, an accountant will make sense of all the financial data to make sure your business’s overall financial health is in order.
If you’re considering getting an accountant, Unloop offers the best services for ecommerce sellers. We have professionals that can help you navigate different aspects of your business. Our services include payroll management, income tax, sales tax, accounting, and bookkeeping.
Book a call with us now and consult with our experts. Let us help you carve your way to success.
Starting a business is a risk. However, it is exciting and it might be tempting to swim ahead into new waters in an attempt to achieve success. Unfortunately, small business owners will have a million things to do. The process of creating a product to sell is only one facet of a business. There's finances, marketing, and advertising, and business owners only have themselves to rely on most of the time.
You often need a second set of hands to help you run a business. Moreover, if there are areas of the business that you're not familiar with, getting an expert may be a wise move for your success. But many business owners are reluctant to hire professionals because of the cost. o you really need one?
Here are some important questions to ask yourself to help you decide if you need a professional accountant.
If you're a certified accountant, managing your business finances will be easy. But let's say you're a beginner in the ecommerce industry. Can you do the accounting by yourself? Assess how much you know about accounting and how sure you are that you can handle your finances efficiently and error-free.
When you encounter double-entry bookkeeping, income statements, cash flows, accounts payable and receivable, and fixed expenses, can you differentiate and identify their purposes? Business finance covers many things, so make sure you can handle whatever applies to your business if you opt not to hire a professional.
If accounting for small businesses fits in your skill set, the next thing you need to ask yourself is if you can dedicate time to manage your finances. As a business owner, you have to oversee the different parts of your business, and business owners often get heavily involved in different processes of their business.
Tasks like talking and striking deals with your suppliers, picking up goods from warehouses, fulfilling deliveries, meetings with potential partners, managing your business webpage, and answering messages about your products are just a few of the jobs you must complete daily—especially if you work alone.
After all these tasks, can you still see yourself managing your finances? Finances require accuracy and complete concentration. After a tiring day, are you still up to the task?
Handling finances also means managing your taxes. Even seasoned people in the business dread managing taxes. There are many taxes levied when you start a business, and different taxes require different declarations and forms. How well-versed are you when it comes to business taxation?
Do you know how to file income taxes? How about sales tax? Do you know the sales tax rate and laws? Do you know how sales tax collection works? You should also be familiar with filing due dates, depending if you file taxes annually or quarterly.
Furthermore, there are also tax exemptions. Do you know the laws that make your products eligible for exemption? Tax exemption can lessen the taxes you pay to the collection agency. You can allocate these funds to further develop your business through investments.
Professional accountants do have a standard rate. It may vary depending on whether you hire from accounting firms or look for a private accountant. Of course, the more experience the accountant has, the higher they will charge.
Budget is one of the factors why many business owners opt to forgo hiring professionals. On average, an accountant's hourly rate is $117. Other services like small business bookkeeping cost an average of $200. Research shows that business owners spend anywhere from $1,000 to $20,000 on accounting annually.
This price point may be daunting for individuals fresh on the market. One thing you can do is hire accountants in a part-time position. This way, you'll still get the help you need without breaking your budget. You can create a schedule when you need your accountant, instead of having them on-call five days a week.
It's easier to handle finances at the beginning of your business. But maybe you need help in other things like organizing and keeping your records clean. An accountant is distinct from a bookkeeper. A bookkeeper does not need to pass state-mandated licensing examinations or a professional accounting degree.
Bookkeepers are trained to organize and record your business’s cash flow. They record all the financial transactions so you can track the money that goes in and out of your business. In addition, they can produce financial statements and reports which can say a lot about the health of your industry.
They can provide you with balance sheets to see if your expenses are parallel with your sales so that you can plan your finances strategically. In addition, bookkeeping costs significantly less than accounting, and there are even automated bookkeeping software that won’t break the bank.
However, bookkeepers can't do what accountants do. Their main goal is to record all your financial transactions; it is an accountant's duty to interpret and analyze the data. So maybe once a month or every quarter, have your bookkeeper meet a professional accountant for a consultation.
Bookkeeping for small businesses is an advantage, but a bookkeeper’s role is limited to your cash flow—no more, no less. So what difference does a certified accountant make? Here are some of the crucial duties a qualified accountant has to perform for your business.
Ask yourselves again, “Do I need an accountant for my small business?” It's not a requirement for every business, but it's a huge advantage. At the beginning, hiring an accountant may seem unnecessary. But as your business grows and a lot of cash comes in and out, an accountant will make sense of all the financial data to make sure your business’s overall financial health is in order.
If you’re considering getting an accountant, Unloop offers the best services for ecommerce sellers. We have professionals that can help you navigate different aspects of your business. Our services include payroll management, income tax, sales tax, accounting, and bookkeeping.
Book a call with us now and consult with our experts. Let us help you carve your way to success.
Invoicing is a business essential and a feature included in the best accounting software. Business owners like you looking for software with invoicing are probably wondering which between Sage and QuickBooks Online is the better option. Both of these programs will have unique offerings, but in the end, one will be better for your business.
In this blog post, we'll compare Sage Accounting vs. QuickBooks to show you which one is best for you. But first, let’s get to know the types of invoices in accounting and your store’s finances.
An invoice can be a hard copy or digitized document that contains information about the seller and the buyer, the date of the transaction, and payment details. There are different types like:
These invoices serve as documentation that will help in income and expense tracking and cash flow management. With the right software, you can collect the details from these invoices for categorization and later run a report for analysis.
The good news is that the comparison between Sage accounting software vs. QuickBooks Online isn’t too drastic, as both offer competitive invoicing features. Either will be a great choice. Nevertheless, you only need one accounting software for your business, so we’ll help you decide.
Sage/Sage50 Cloud/Peachtree stands out among the many choices of accounting and financial management tools because of its industry-based assistance. The software assists accounting for companies in construction, real estate, human resources, manufacturing, chemical, wholesale, food and beverage, and even in the nonprofit sector. It addresses different small business accounting software needs, especially with its invoicing feature.
Say hello to Sage’s business cloud accounting invoicing. In only a few clicks, you can generate invoices and send them to customers. You surely won’t miss the traditional way of sending hard copy invoices which takes time for data entry, printing, and delivery.
When your customers receive their invoices, they can send their payments online. The Sage accounting software partners with Stripe, an online payment processing software. After paying, the money will be transferred into your business account. The customer’s payment and your receipt will be done without any hassle.
You can automatically turn the estimates and quotes you have into invoices and send them to your customers in just a few clicks. Regular invoice creation can also be done quickly because the data you need, from the customer’s contact information, your business details, and the details of the products, are all stored in the online accounting software.
Sage50 Cloud used to only be for desktop use, but now, it is also available on mobile. So, if you ever need to generate invoices or stay on top of your small business’s financial management, you can easily do it on your phone. This data is kept safe as Sage is a cloud-based accounting software.
Meanwhile, Intuit QuickBooks is also a great choice for your business’s accounting and financial management. It has a live bookkeeping service that keeps all financial transactions up-to-date. Payroll and payment tracking, bank accounts, credit cards, integrations with other applications, project management, and inventory management are some of the accounting tasks this tool can accomplish. For invoicing, here is what QuickBooks Online offers:
QuickBooks Online can generate invoices, but more than this, the software can also send bulk invoices as the system can store all customer and product information. You can save a lot of time doing this instead of creating invoices one by one.
If you have regular transactions, skip the hassle of creating invoices again and again or forgetting to send one through the help of recurring invoices. This accounting feature schedules the sending of the invoice. It also avoids late payments as customers can send their payments timely as well.
If it is your first time creating an invoice or using accounting software, QuickBooks Online can assist you through the Priority Circle. This training tool is completely free for those using QuickBooks Pro/Advanced. With Priority Circle, you’ll learn how to create different invoices, make templates, and send them to customers. QuickBooks also offers customer support for your invoice and accounting-related questions.
The “Pay Now” link can work magic in encouraging customers to pay on time. Since QuickBooks welcomes integration with various payment methods, your customers can pay in ways convenient to them. The money goes straight to your account and reflects on your bank feed with no hassle!
QuickBooks Online is on par with Sage50 Cloud regarding software mobile access. You can create and send invoices as long as you have your phone and an internet connection. You’ll also have your business’s financial information in your pocket anywhere you go.
Both are great accounting software, but when it comes to Sage/Peachtree vs. QuickBooks for small businesses, we believe that QuickBooks Online takes the top spot. QuickBooks has more advanced features like invoice training that is much needed by beginners, and it allows the creation and sending of bulk invoices. The accounting software also has more choices when it comes to payment methods.
Of course, your store may have unique needs that could sway you towards choosing Sage. But for the average small business, QuickBooks Online is likely the better option for invoicing and beyond.
If you need assistance with keeping your books in order, Unloop offers bookkeeping services. We have a team of professionals well-versed with QuickBooks and other accounting and bookkeeping tools like Xero. Be sure to give us a call—we’d love to discuss our offers with you.
Invoicing is a business essential and a feature included in the best accounting software. Business owners like you looking for software with invoicing are probably wondering which between Sage and QuickBooks Online is the better option. Both of these programs will have unique offerings, but in the end, one will be better for your business.
In this blog post, we'll compare Sage Accounting vs. QuickBooks to show you which one is best for you. But first, let’s get to know the types of invoices in accounting and your store’s finances.
An invoice can be a hard copy or digitized document that contains information about the seller and the buyer, the date of the transaction, and payment details. There are different types like:
These invoices serve as documentation that will help in income and expense tracking and cash flow management. With the right software, you can collect the details from these invoices for categorization and later run a report for analysis.
The good news is that the comparison between Sage accounting software vs. QuickBooks Online isn’t too drastic, as both offer competitive invoicing features. Either will be a great choice. Nevertheless, you only need one accounting software for your business, so we’ll help you decide.
Sage/Sage50 Cloud/Peachtree stands out among the many choices of accounting and financial management tools because of its industry-based assistance. The software assists accounting for companies in construction, real estate, human resources, manufacturing, chemical, wholesale, food and beverage, and even in the nonprofit sector. It addresses different small business accounting software needs, especially with its invoicing feature.
Say hello to Sage’s business cloud accounting invoicing. In only a few clicks, you can generate invoices and send them to customers. You surely won’t miss the traditional way of sending hard copy invoices which takes time for data entry, printing, and delivery.
When your customers receive their invoices, they can send their payments online. The Sage accounting software partners with Stripe, an online payment processing software. After paying, the money will be transferred into your business account. The customer’s payment and your receipt will be done without any hassle.
You can automatically turn the estimates and quotes you have into invoices and send them to your customers in just a few clicks. Regular invoice creation can also be done quickly because the data you need, from the customer’s contact information, your business details, and the details of the products, are all stored in the online accounting software.
Sage50 Cloud used to only be for desktop use, but now, it is also available on mobile. So, if you ever need to generate invoices or stay on top of your small business’s financial management, you can easily do it on your phone. This data is kept safe as Sage is a cloud-based accounting software.
Meanwhile, Intuit QuickBooks is also a great choice for your business’s accounting and financial management. It has a live bookkeeping service that keeps all financial transactions up-to-date. Payroll and payment tracking, bank accounts, credit cards, integrations with other applications, project management, and inventory management are some of the accounting tasks this tool can accomplish. For invoicing, here is what QuickBooks Online offers:
QuickBooks Online can generate invoices, but more than this, the software can also send bulk invoices as the system can store all customer and product information. You can save a lot of time doing this instead of creating invoices one by one.
If you have regular transactions, skip the hassle of creating invoices again and again or forgetting to send one through the help of recurring invoices. This accounting feature schedules the sending of the invoice. It also avoids late payments as customers can send their payments timely as well.
If it is your first time creating an invoice or using accounting software, QuickBooks Online can assist you through the Priority Circle. This training tool is completely free for those using QuickBooks Pro/Advanced. With Priority Circle, you’ll learn how to create different invoices, make templates, and send them to customers. QuickBooks also offers customer support for your invoice and accounting-related questions.
The “Pay Now” link can work magic in encouraging customers to pay on time. Since QuickBooks welcomes integration with various payment methods, your customers can pay in ways convenient to them. The money goes straight to your account and reflects on your bank feed with no hassle!
QuickBooks Online is on par with Sage50 Cloud regarding software mobile access. You can create and send invoices as long as you have your phone and an internet connection. You’ll also have your business’s financial information in your pocket anywhere you go.
Both are great accounting software, but when it comes to Sage/Peachtree vs. QuickBooks for small businesses, we believe that QuickBooks Online takes the top spot. QuickBooks has more advanced features like invoice training that is much needed by beginners, and it allows the creation and sending of bulk invoices. The accounting software also has more choices when it comes to payment methods.
Of course, your store may have unique needs that could sway you towards choosing Sage. But for the average small business, QuickBooks Online is likely the better option for invoicing and beyond.
If you need assistance with keeping your books in order, Unloop offers bookkeeping services. We have a team of professionals well-versed with QuickBooks and other accounting and bookkeeping tools like Xero. Be sure to give us a call—we’d love to discuss our offers with you.
Ecommerce accounting can be tedious, time-consuming, and error-prone, especially if you’re just new to the industry. Automated ecommerce accounting software, like A2X eCom Accounting, are just the thing you need to ease your worries. And we’ll tell you why.
Plenty of tools are available online, and there’s more being developed, but in this blog post, we'll discuss why A2X remains one of the best accounting software options available. What makes A2X stand out?
Let’s take a deeper look at what A2X Accounting is, its features, and its possible lowlights to determine if this is the right choice for your ecommerce business.
Businesses are already aware of the income-generating potential of online selling. If you are one of the brave souls to venture into the ecommerce space, you can rely on A2X as it is specifically designed for ecommerce sites.
A2X for Amazon accounting covers your basic needs on the world's largest ecommerce site, but it also assists traders and auctioneers with their products on eBay. Likewise, A2X supports selling on other ecommerce channels like Walmart, Etsy, and Shopify.
Besides multi-channel support, A2X also caters to a range of business sizes and types, from businesses that have just opened their first ecommerce store to those that have already successfully scaled their ventures.
The table below will give you an overview of what A2X can offer.
| Mini | Starter | Standard | Premium |
| $19/month | $49/month | $69/month | $139/month |
| 1 Shopify/Amazon Marketplace | Unlimited marketplaces per region | Unlimited marketplaces per region | Unlimited marketplaces per region |
| 200 orders/month | 1000 orders/month | 5000 orders/month | 10,000 orders/month |
| 3 months of transaction history | 12 months of transaction history | 24 months of transaction history | Maximum number of transaction history |
| Email support | Email, live, tickets, and chat support | Email, live, tickets, and chat support | Email, live, tickets, and chat support with priority |
The inclusions listed above are just the tip of the A2X iceberg. There are many more ways the accounting software can elevate your business and bring it to success.
To give you a glimpse of its magic, here are eight reasons why the A2X Accounting software is an excellent addition to your business's financial management tools:
Accurate ecommerce accounting is a must for every online business. It can tell you if your business is generating a profit, taking a loss, or if there are any discrepancies in your business finances. You can count on A2X to automatically reconcile the transactions in your online store platform to your accounting system.
Financial reconciliation also extends to your bank account. You can ensure that your sales are deposited to your bank accounts and spot if there are missing amounts before they can do damage to your business.
A dedicated ecommerce business owner will find a way to generate more sales. Hence, most online retailers have more than one Amazon account. Another excellent business strategy is to sell on different marketplaces simultaneously.
While these game plans can undeniably increase sales, monitoring additional accounts and sites can be confusing. Thankfully, A2X would be of great help.
A2X accounting can support up to five Amazon accounts and reconcile all your financial data in one accounting software. In addition, A2X tracks all the essential data from different sites and allows you to reconcile and migrate your data from two different ecommerce platforms.
For example, if you have Shopify store sales and accounts and Amazon accounts, A2X can track the finances of both platforms and import the data on the software.
For a small business, detailed reports of ecommerce financials are a starting point for improvement. These reports are essential for gauging your company’s financial performance and growth accounting.
You can count on A2X to produce tidy summaries of finances at the end of each month. Whether it's reporting inventory, a record of sales or expenses, a balance sheet, or other business matters, keeping track of your operations becomes easier and more accurate.
You can connect A2X to your ecommerce seller account to acquire data. A2X will then categorize the numbers it gets according to the details you want to see. Below is a step-by-step guide from A2X itself on connecting the tool to your Amazon Seller Central account.
Shopify, Amazon, and other ecommerce platforms are available globally. You may expand your consumer base internationally, and A2X can simplify managing payments for your company.
A2X can handle and recognize different currencies regardless of the default currency of the originating sales transactions.
Moreover, A2X also lets users manage tax liability more effectively. Different countries have various rates when it comes to sales and fees. A2X automatically deducts the correct sales tax and records it on the system to avoid confusion during tax season.
You can keep track of how many inventory stocks you have in various locations thanks to A2X’s inventory management tool. It can give you detailed inventory reports and show you which products run out faster and which stay in your inventory longer.
With this feature also comes monitoring your business's sales margin. The accounting software will show you if your sales record matches your cost of goods, enabling you to create strategies for poor-performing and top-performing products.
Perhaps you manage more businesses, including physical stores and online selling sites not included in A2X's services.
You'll find the best accounting tools like Quickbooks, Xero, and Sage business cloud accounting more helpful because you can integrate these three premium tools with A2X. With all your business data in one place, you can have a holistic view of your finances in a single click.
If you want a side-by-side comparison of your stores to see and learn from each account's highlights and areas for improvement, you should utilize this A2X feature.
To give you an overview of the feature, check out the tutorial below on integrating Xero with A2X.
Not every Amazon FBA seller or eBay seller dives into business bookkeeping and accounting equipped with knowledge and training. Also, not all accounting tools include teaching sessions in their program. So, eCommerce sellers often rely on self-education or paid tutorials.
When you use A2X, you can also utilize its live chat support and customer service to assist you. This service is included in all plans, so you do not have to guess or learn from your mistakes. You can do your monthly bookkeeping and accounting swiftly with available customer support.
Besides ecommerce sellers, A2X is also reliable for accounting firms. If your plate is full of tasks in running your ecommerce business, you can delegate bookkeeping and accounting to expert ecommerce accountants.
Pick a firm that uses A2X, especially if your accountant uses a cloud-based accounting software that extracts data from your Amazon, Shopify, Etsy, Walmart, and eBay accounts.
You can rely on the firm for data accuracy and timely financial updates with the proper software. You can also check other accounting tools your partner firm uses. Seeing Quickbooks, Xero, and Sage accounting tools is a good sign that the agency knows what they're doing.
A2X accounting software sounds like the perfect tool to manage ecommerce accounting. To some, A2X is even the gold standard. However, there may be features that can be off-putting to some users. Consider those first before using this software.
Most people that use A2X are accounting firms and professionals. According to some ecommerce business owners, learning and understanding how to use and navigate the interface takes some time. If you subscribe to the Mini plan, you must experiment and learn the software independently.
However, when you subscribe to higher plans, you can enjoy one-on-one onboarding with an A2X specialist to teach you how to use the software and its features. So if you have the budget to upgrade your plan, go for it!
A2X could be pricey if you run a small business. There are free accounting software options, and some software starting plans are not more than $5. A2X software's most basic plan starts at $19 a month. Their pricing is almost four times more compared to other software.
However, A2X is very convenient for Amazon and Shopify sellers. Its features are designed to automate and address your accounting needs with just a few clicks. If you can stretch your budget a few more dollars, you'll know that your accounting is in good hands with A2X.
Source: Photo by fauxels from Pexels.com
A2X Accounting is a great tool for managing your business finances, and we highly recommend using it. It offers a wide range of features, including integration with other financial management tools, generating detailed reports, inventory management, financial reconciliation, and more.
In addition, the customer support team is available 24/7 to help you with any questions or problems that may arise. So, if you're looking for a way to keep track of your business finances, give A2X Accounting a try!
Suppose you don't feel confident implementing these changes yourself, no problem! Unloop can help.
We have a team of bookkeepers well-versed with A2X, and we also use reliable accounting tools, including Quickbooks and Xero. We would love to partner with you to take your ecommerce businesses to the next level. So call us today, and we'll let you know how we can help!
Ecommerce accounting can be tedious, time-consuming, and error-prone, especially if you’re just new to the industry. Automated ecommerce accounting software, like A2X eCom Accounting, are just the thing you need to ease your worries. And we’ll tell you why.
Plenty of tools are available online, and there’s more being developed, but in this blog post, we'll discuss why A2X remains one of the best accounting software options available. What makes A2X stand out?
Let’s take a deeper look at what A2X Accounting is, its features, and its possible lowlights to determine if this is the right choice for your ecommerce business.
Businesses are already aware of the income-generating potential of online selling. If you are one of the brave souls to venture into the ecommerce space, you can rely on A2X as it is specifically designed for ecommerce sites.
A2X for Amazon accounting covers your basic needs on the world's largest ecommerce site, but it also assists traders and auctioneers with their products on eBay. Likewise, A2X supports selling on other ecommerce channels like Walmart, Etsy, and Shopify.
Besides multi-channel support, A2X also caters to a range of business sizes and types, from businesses that have just opened their first ecommerce store to those that have already successfully scaled their ventures.
The table below will give you an overview of what A2X can offer.
| Mini | Starter | Standard | Premium |
| $19/month | $49/month | $69/month | $139/month |
| 1 Shopify/Amazon Marketplace | Unlimited marketplaces per region | Unlimited marketplaces per region | Unlimited marketplaces per region |
| 200 orders/month | 1000 orders/month | 5000 orders/month | 10,000 orders/month |
| 3 months of transaction history | 12 months of transaction history | 24 months of transaction history | Maximum number of transaction history |
| Email support | Email, live, tickets, and chat support | Email, live, tickets, and chat support | Email, live, tickets, and chat support with priority |
The inclusions listed above are just the tip of the A2X iceberg. There are many more ways the accounting software can elevate your business and bring it to success.
To give you a glimpse of its magic, here are eight reasons why the A2X Accounting software is an excellent addition to your business's financial management tools:
Accurate ecommerce accounting is a must for every online business. It can tell you if your business is generating a profit, taking a loss, or if there are any discrepancies in your business finances. You can count on A2X to automatically reconcile the transactions in your online store platform to your accounting system.
Financial reconciliation also extends to your bank account. You can ensure that your sales are deposited to your bank accounts and spot if there are missing amounts before they can do damage to your business.
A dedicated ecommerce business owner will find a way to generate more sales. Hence, most online retailers have more than one Amazon account. Another excellent business strategy is to sell on different marketplaces simultaneously.
While these game plans can undeniably increase sales, monitoring additional accounts and sites can be confusing. Thankfully, A2X would be of great help.
A2X accounting can support up to five Amazon accounts and reconcile all your financial data in one accounting software. In addition, A2X tracks all the essential data from different sites and allows you to reconcile and migrate your data from two different ecommerce platforms.
For example, if you have Shopify store sales and accounts and Amazon accounts, A2X can track the finances of both platforms and import the data on the software.
For a small business, detailed reports of ecommerce financials are a starting point for improvement. These reports are essential for gauging your company’s financial performance and growth accounting.
You can count on A2X to produce tidy summaries of finances at the end of each month. Whether it's reporting inventory, a record of sales or expenses, a balance sheet, or other business matters, keeping track of your operations becomes easier and more accurate.
You can connect A2X to your ecommerce seller account to acquire data. A2X will then categorize the numbers it gets according to the details you want to see. Below is a step-by-step guide from A2X itself on connecting the tool to your Amazon Seller Central account.
Shopify, Amazon, and other ecommerce platforms are available globally. You may expand your consumer base internationally, and A2X can simplify managing payments for your company.
A2X can handle and recognize different currencies regardless of the default currency of the originating sales transactions.
Moreover, A2X also lets users manage tax liability more effectively. Different countries have various rates when it comes to sales and fees. A2X automatically deducts the correct sales tax and records it on the system to avoid confusion during tax season.
You can keep track of how many inventory stocks you have in various locations thanks to A2X’s inventory management tool. It can give you detailed inventory reports and show you which products run out faster and which stay in your inventory longer.
With this feature also comes monitoring your business's sales margin. The accounting software will show you if your sales record matches your cost of goods, enabling you to create strategies for poor-performing and top-performing products.
Perhaps you manage more businesses, including physical stores and online selling sites not included in A2X's services.
You'll find the best accounting tools like Quickbooks, Xero, and Sage business cloud accounting more helpful because you can integrate these three premium tools with A2X. With all your business data in one place, you can have a holistic view of your finances in a single click.
If you want a side-by-side comparison of your stores to see and learn from each account's highlights and areas for improvement, you should utilize this A2X feature.
To give you an overview of the feature, check out the tutorial below on integrating Xero with A2X.
Not every Amazon FBA seller or eBay seller dives into business bookkeeping and accounting equipped with knowledge and training. Also, not all accounting tools include teaching sessions in their program. So, eCommerce sellers often rely on self-education or paid tutorials.
When you use A2X, you can also utilize its live chat support and customer service to assist you. This service is included in all plans, so you do not have to guess or learn from your mistakes. You can do your monthly bookkeeping and accounting swiftly with available customer support.
Besides ecommerce sellers, A2X is also reliable for accounting firms. If your plate is full of tasks in running your ecommerce business, you can delegate bookkeeping and accounting to expert ecommerce accountants.
Pick a firm that uses A2X, especially if your accountant uses a cloud-based accounting software that extracts data from your Amazon, Shopify, Etsy, Walmart, and eBay accounts.
You can rely on the firm for data accuracy and timely financial updates with the proper software. You can also check other accounting tools your partner firm uses. Seeing Quickbooks, Xero, and Sage accounting tools is a good sign that the agency knows what they're doing.
A2X accounting software sounds like the perfect tool to manage ecommerce accounting. To some, A2X is even the gold standard. However, there may be features that can be off-putting to some users. Consider those first before using this software.
Most people that use A2X are accounting firms and professionals. According to some ecommerce business owners, learning and understanding how to use and navigate the interface takes some time. If you subscribe to the Mini plan, you must experiment and learn the software independently.
However, when you subscribe to higher plans, you can enjoy one-on-one onboarding with an A2X specialist to teach you how to use the software and its features. So if you have the budget to upgrade your plan, go for it!
A2X could be pricey if you run a small business. There are free accounting software options, and some software starting plans are not more than $5. A2X software's most basic plan starts at $19 a month. Their pricing is almost four times more compared to other software.
However, A2X is very convenient for Amazon and Shopify sellers. Its features are designed to automate and address your accounting needs with just a few clicks. If you can stretch your budget a few more dollars, you'll know that your accounting is in good hands with A2X.
Source: Photo by fauxels from Pexels.com
A2X Accounting is a great tool for managing your business finances, and we highly recommend using it. It offers a wide range of features, including integration with other financial management tools, generating detailed reports, inventory management, financial reconciliation, and more.
In addition, the customer support team is available 24/7 to help you with any questions or problems that may arise. So, if you're looking for a way to keep track of your business finances, give A2X Accounting a try!
Suppose you don't feel confident implementing these changes yourself, no problem! Unloop can help.
We have a team of bookkeepers well-versed with A2X, and we also use reliable accounting tools, including Quickbooks and Xero. We would love to partner with you to take your ecommerce businesses to the next level. So call us today, and we'll let you know how we can help!
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.
Most business owners and experts agree that payroll management is tough, but it doesn't have to be. Take advantage of technology and use an employee payroll management system.
Learn the key benefits of payroll management software and why you should invest in one for your small business now.
What exactly is payroll software? To simplify things, it manages everything that has to do with payroll. Payroll software automates everything from employee pay to attendance and all other necessary human resource records.
In other words, it elevates the basic payroll functions and makes the entire payroll management process easier and faster for employers and business owners. To give you a bit of reference, check out the usual payroll flow below.
Some steps may take hours to fulfill with manual payroll management. However, by using payroll software, employers can accomplish these tasks in a flash with just a few clicks.
Not only can a payroll system save time for human resource personnel, but they are also less likely to make errors with such software. With this, employees are more likely to be satisfied with the management of their pay. Applications such as these make it convenient to run a business.
Different companies offer online payroll management systems. If you are interested in getting one for your business, there are two things to look for:
As your business grows and employees increase, the human resource department will only get more swamped. Payroll software will lessen their workload and let them focus on other aspects of employee management. Here are reasons to ditch manual payroll and switch to automated payroll systems.
On average, HR personnel may spend up to 21 days annually on payroll processing alone. However, this much time can be spent on other areas of your business. For example, many successful companies allocate a chunk for employee development, goal setting, and strategic planning.
Take advantage of the convenience of payroll software so you can focus more on how to develop and grow your business further. Payroll software helps you skip manually entering long pay stubs, doing calculations, and individually depositing pay into your employees’ accounts. This lets you go through your usual payroll routine hassle-free and more quickly.
Payroll software promotes transparency that can help build trust among your employees. The software lets your employees see how much they are paid and the breakdown of any deductions, giving them confidence that they will always receive their pay on schedule.
But don't worry; even if your employees can track their records, you can still restrict access to important information like attendance, benefits, and time logs. They can view them, but only the admin can make changes.
Every year, numerous employees are affected by errors made by manual payroll processing. To make matters worse, these payroll errors take days for management to fix. Payroll problems can be frustrating for both the side of the management and employees.
An employee payroll management system can significantly decrease the risk of making errors from manual payroll processes. You can ensure that your employee receives the exact amount of their salary every pay period.
Additionally, using the best payroll solution with top-notch security can ensure that payroll data is only accessible to the human resources department and other authorized personnel. After all, the payroll employee database contains sensitive information such as addresses, birth dates, bank account numbers, Social Security numbers, and more.
If you have many employees, keeping track of them all can be challenging. It will be more difficult if your employees work remotely and have irregular schedules. Payroll software can do the tracking for you. It can store your employee's time data, whether they have to work overtime or under time, and note days when they are late or out from work.
Moreover, payroll software can track your employees anywhere around the globe. So if you have a big business or an international branch, you can manage all the payroll in one software even when you're not in the same locale.
If this is your first time hearing about payroll software companies and their tools, you obviously have little to no idea how it works. To convince you to get an automated payroll manager for your business, here are five of the best features of payroll software.
The software can easily do all the calculations for you. From bonuses, holiday pay, employee benefits, tax deductions, overtime, to other factors that can affect an employee's salary. You can also print payslips provided by the software once the payment is processed.
Moreover, you can print checks directly from the software for employees whose pay is not directly transferred to their bank accounts.
Payroll software can manage direct deposits of your employee's pay. All you need to do is input the important details of the payment and when it's scheduled. From there, the software will do it all for you. So you don't have to worry if the payment has been processed on time or if you missed an employee on payday.
Automated software is less prone to errors, so you can avoid issues that translate to employee confidence in the system and the company's management.
Attendance is the number one factor that affects the employee's pay. Therefore, it will be a great convenience for the HR department when you consolidate attendance checking with the pay. In addition, with this feature, the HR department will have an easier time in case employees have inquiries about certain deductions and changes in their pay.
Managing employee and payroll taxes is another headache for the human resource department. Payroll services can handle all tax calculations, including an employee's withholdings, insurance, and other necessary contributions. It can also generate tax forms and records of tax payments.
These are necessary documents for income tax filing, so you file and remit properly.
Several payroll services allow employees to update their information anytime. So, for example, if there are any changes in their bank forms or errors in the information, employees can immediately change them without going through the many requests and processes.
This transparency can answer minor inquiries from employees regarding their pay without needing to talk directly to someone from the HR department.
To make your company’s payroll process even more efficient, we’ve made a list of tips from top payroll specialists. With these tips, you can make accurate payroll computations and avoid payroll processing errors.
If you want to make your payroll processes easier while reducing the risk of human error, you should consider automating your payroll system with cloud-based tools. With these tools, you’re sure to pay employees accurately and on time.
Additionally, cloud-based tools can help improve compliance with government regulations. With real-time updates and automatic filings, businesses can be confident that they are always up to date with the latest requirements.
Establishing strict payroll policies helps ensure that all employees are treated fairly and helps avoid the likelihood of workplace disputes. This will also promote a culture of transparency and trust within your company.
With firm payroll policies, you can ensure that accurate records are kept for each employee and that they are paid promptly. Additionally, it can reduce accounting and administrative costs while avoiding disruptions and maximizing efficiency.
Staying up-to-date on tax laws and regulations can be challenging because they are constantly changing. However, by ensuring that you know the latest changes, your company can maintain its compliance with the law, and your employees can get the right calculation of tax withheld from their paychecks.
Finally, staying up-to-date on tax laws can help you identify potential deductions and credits that your company may be eligible for.
The automated payroll managing software is a huge convenience for your business. It makes the flow of money in your business smoother and error-free. If your business is continuously growing, investing in a web-based payroll management system is a step forward in handling your business better.
If you have decided on getting an automated payroll software, experts at Unloop can help you run your payroll process smoothly. Our experts will link your payroll to cloud-based software so that we can do everything for you. Our software also generates reports you can use for proper tax filing.
Book a call with us now and put your payroll needs in our hands!
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.
Most business owners and experts agree that payroll management is tough, but it doesn't have to be. Take advantage of technology and use an employee payroll management system.
Learn the key benefits of payroll management software and why you should invest in one for your small business now.
What exactly is payroll software? To simplify things, it manages everything that has to do with payroll. Payroll software automates everything from employee pay to attendance and all other necessary human resource records.
In other words, it elevates the basic payroll functions and makes the entire payroll management process easier and faster for employers and business owners. To give you a bit of reference, check out the usual payroll flow below.
Some steps may take hours to fulfill with manual payroll management. However, by using payroll software, employers can accomplish these tasks in a flash with just a few clicks.
Not only can a payroll system save time for human resource personnel, but they are also less likely to make errors with such software. With this, employees are more likely to be satisfied with the management of their pay. Applications such as these make it convenient to run a business.
Different companies offer online payroll management systems. If you are interested in getting one for your business, there are two things to look for:
As your business grows and employees increase, the human resource department will only get more swamped. Payroll software will lessen their workload and let them focus on other aspects of employee management. Here are reasons to ditch manual payroll and switch to automated payroll systems.
On average, HR personnel may spend up to 21 days annually on payroll processing alone. However, this much time can be spent on other areas of your business. For example, many successful companies allocate a chunk for employee development, goal setting, and strategic planning.
Take advantage of the convenience of payroll software so you can focus more on how to develop and grow your business further. Payroll software helps you skip manually entering long pay stubs, doing calculations, and individually depositing pay into your employees’ accounts. This lets you go through your usual payroll routine hassle-free and more quickly.
Payroll software promotes transparency that can help build trust among your employees. The software lets your employees see how much they are paid and the breakdown of any deductions, giving them confidence that they will always receive their pay on schedule.
But don't worry; even if your employees can track their records, you can still restrict access to important information like attendance, benefits, and time logs. They can view them, but only the admin can make changes.
Every year, numerous employees are affected by errors made by manual payroll processing. To make matters worse, these payroll errors take days for management to fix. Payroll problems can be frustrating for both the side of the management and employees.
An employee payroll management system can significantly decrease the risk of making errors from manual payroll processes. You can ensure that your employee receives the exact amount of their salary every pay period.
Additionally, using the best payroll solution with top-notch security can ensure that payroll data is only accessible to the human resources department and other authorized personnel. After all, the payroll employee database contains sensitive information such as addresses, birth dates, bank account numbers, Social Security numbers, and more.
If you have many employees, keeping track of them all can be challenging. It will be more difficult if your employees work remotely and have irregular schedules. Payroll software can do the tracking for you. It can store your employee's time data, whether they have to work overtime or under time, and note days when they are late or out from work.
Moreover, payroll software can track your employees anywhere around the globe. So if you have a big business or an international branch, you can manage all the payroll in one software even when you're not in the same locale.
If this is your first time hearing about payroll software companies and their tools, you obviously have little to no idea how it works. To convince you to get an automated payroll manager for your business, here are five of the best features of payroll software.
The software can easily do all the calculations for you. From bonuses, holiday pay, employee benefits, tax deductions, overtime, to other factors that can affect an employee's salary. You can also print payslips provided by the software once the payment is processed.
Moreover, you can print checks directly from the software for employees whose pay is not directly transferred to their bank accounts.
Payroll software can manage direct deposits of your employee's pay. All you need to do is input the important details of the payment and when it's scheduled. From there, the software will do it all for you. So you don't have to worry if the payment has been processed on time or if you missed an employee on payday.
Automated software is less prone to errors, so you can avoid issues that translate to employee confidence in the system and the company's management.
Attendance is the number one factor that affects the employee's pay. Therefore, it will be a great convenience for the HR department when you consolidate attendance checking with the pay. In addition, with this feature, the HR department will have an easier time in case employees have inquiries about certain deductions and changes in their pay.
Managing employee and payroll taxes is another headache for the human resource department. Payroll services can handle all tax calculations, including an employee's withholdings, insurance, and other necessary contributions. It can also generate tax forms and records of tax payments.
These are necessary documents for income tax filing, so you file and remit properly.
Several payroll services allow employees to update their information anytime. So, for example, if there are any changes in their bank forms or errors in the information, employees can immediately change them without going through the many requests and processes.
This transparency can answer minor inquiries from employees regarding their pay without needing to talk directly to someone from the HR department.
To make your company’s payroll process even more efficient, we’ve made a list of tips from top payroll specialists. With these tips, you can make accurate payroll computations and avoid payroll processing errors.
If you want to make your payroll processes easier while reducing the risk of human error, you should consider automating your payroll system with cloud-based tools. With these tools, you’re sure to pay employees accurately and on time.
Additionally, cloud-based tools can help improve compliance with government regulations. With real-time updates and automatic filings, businesses can be confident that they are always up to date with the latest requirements.
Establishing strict payroll policies helps ensure that all employees are treated fairly and helps avoid the likelihood of workplace disputes. This will also promote a culture of transparency and trust within your company.
With firm payroll policies, you can ensure that accurate records are kept for each employee and that they are paid promptly. Additionally, it can reduce accounting and administrative costs while avoiding disruptions and maximizing efficiency.
Staying up-to-date on tax laws and regulations can be challenging because they are constantly changing. However, by ensuring that you know the latest changes, your company can maintain its compliance with the law, and your employees can get the right calculation of tax withheld from their paychecks.
Finally, staying up-to-date on tax laws can help you identify potential deductions and credits that your company may be eligible for.
The automated payroll managing software is a huge convenience for your business. It makes the flow of money in your business smoother and error-free. If your business is continuously growing, investing in a web-based payroll management system is a step forward in handling your business better.
If you have decided on getting an automated payroll software, experts at Unloop can help you run your payroll process smoothly. Our experts will link your payroll to cloud-based software so that we can do everything for you. Our software also generates reports you can use for proper tax filing.
Book a call with us now and put your payroll needs in our hands!
Starting an Amazon business requires essential bookkeeping and accounting to support your growth in the highly competitive marketplace. The vast scale of Amazon attracts numerous sellers and buyers, offering significant growth potential. Proper Amazon seller accounting is vital for identifying and capitalizing on these opportunities.
With the potential volume of transactions possible for every Amazon seller, it's important to understand the role accounting and bookkeeping play to ensure a smooth-sailing business. These can be the difference between stagnation and achieving your desired income level.
So let Unloop tackle these important business facets.
If you're an absolute beginner or have little idea about bookkeeping, you must get educated. Invest time in knowing the basics of bookkeeping and how it works.
If you have some idea already, reviewing the basics will benefit you when setting up a proper accounting system for your FBA business. Consider the following:
Educating yourself with fundamental lessons on bookkeeping is crucial. From there, skim other bookkeeping principles. For example, you can look into the significance of assets, liabilities, and capital and how these three relate to each other.
You must understand the accounting cycle to get the gist of how bookkeeping services work. Bookkeepers follow the steps of the cycle to ensure proper recording and allocating of income and expenses.
You'll also learn double entry accounting and do trial balances. You can choose whether to dive deeper into the bookkeeping practice once you fully grasp how the accounting cycle works.
Once you've learned how the accounting cycle works, you can now practice or outsource it. But first, you must decide what accounting method you'll use. There are two:
This accounting method records the transaction on a cash-received basis. The actual money must be in your bank account to qualify as an official record.
Microentrepreneurs and other startup enterprises most commonly use cash accounting for its simple, straightforward, and accurate process. It works well for simple business transactions.
The accrual method involves a time element. It records transactions based on when the transaction happened, regardless of whether there's money paid or not.
Accrual accounting is more complex, but it provides more information for those who manage businesses involving multiple transactions. Some large-scale companies have more leeway regarding credit, so a big-ticket item sale may inevitably be paid later.
It's also possible for you to acquire products and pay for them later or in advance before the product arrives. Accrual accounting is useful when reflecting these transactions in your accounting records.
Amazon Seller Accounting refers to the financial management and record-keeping practices that sellers on the Amazon platform use to track and manage their business transactions. It involves:
Automated Amazon Accounting will give you a quick view of your business transactions and finances. These numbers will then guide you on future steps and whether your current strategies effectively make your business profitable and sustainable.
Accounting is the backbone of Amazon businesses—of any business, in fact. Monitoring your numbers keeps your online store afloat. But there are other benefits to accounting that every Amazon business owner should leverage.
Once you begin your business accounting, you can get plenty of reports to help you create strategies and make decisions.
Your business will only grow and move forward if you manage your money well. Part of proper financial management is quickly knowing the factors that hurt your business so you can inhibit these problems from happening. The key to this is proactive planning.
Common problems with financial management:
You can be at peace once you get in-house accountants or a third-party agency offering Amazon seller accounting services. You know your business finances are monitored. There will be individuals who can give you valuable insights about your business's current status and manage your growth.
With that, you'll have plenty of time for the different areas in managing your Amazon store and other online stores. You can also focus on developing your products to ensure quality and increase sales. All these steps are done with coherence to the financial status of your business.
Some strategies that company executives and accountants use are the Profit First Framework and Traditional Accounting.
If you are increasing your profit, you should set a good amount aside as your earnings first before spending the rest on expenses.
Your business financial strategy is like a map. Like any other plans you have for your business, it will serve as a guide to take you to a successful end.
When is an early time? It would be best if you start accounting the moment you start your business. Minding this only during tax season is a typical mistake sellers make. Monitoring your assets and liabilities should be done immediately.
The tasks you'll need to accomplish as an entrepreneur never ends, but fulfill first what ensures your business's survival and success. And that is accounting.
Attending webinars and taking courses about accounting will help, especially when you get reports from accountants. Still, it would be best to delegate this task to specialists offering accounting and bookkeeping services. All these details are best accomplished and planned with your store and product launch planning.
Whether it's an online or physical store, you should register your business for necessary permits as soon as you start the business—this is for taxes and other legal factors. Some sellers get too busy with other tasks to launch their stores that they forget to register for taxation, while some intentionally do not write. Doing this just increases the hassle. Your business will risk getting fined for not paying on time or at all.
Defining how much tax you must pay also ensures you know exactly how much money will come from your account. This practice will make your Profit First Framework easier to enact.
Amazon sellers, in particular, will encounter issues involving sales tax. All merchants in the marketplace have to remit this to authorities, which means tracking sales tax becomes a crucial part of their business activity. Even if Amazon is the one collecting sales tax, they only give you all the collections in a lump sum, and you still have to determine the portion of the sales tax you should remit to the government.
If you are a trained accountant with experience in handling Amazon Seller Central and other relevant tools, then you can control your own accounting. However, if you do not have a background in this area, it is better to delegate it to experts.
Your period-specific reviews should always have accounting reports. As a business owner you can personalize the reports you want to have and when. Here are some samples:
| Report | Details You Can include |
| Cash Flow Management Report | Quick ratio, current ratio, cash balance, days sales outstanding, days payable outstanding |
| Profit and Loss Report | Gross profit margin, operating expense (OPEX) ratio, operating profit margin, net profit margin, earnings before interest and tax, income statement, net profit |
| Financial Performance Report | Balance sheet, assets return, working capital ratio, equity return, debt-equity ratio |
| Financial Key Performance Indicators Report | Current working capital, current liabilities, cash conversion cycle, vendor payment error rate, working capital |
| Financial Statement | Revenue, gross profit, earning before Interest and tax (EBIT), operating expenses, net income, economic value added (EVA), berry ratio, employee satisfaction, customer satisfaction |
All these reports will be more pleasing to the eyes and easy to understand if you establish a template and maximize the usage of graphs. In addition, information contained in the reports are not fixed, which means they can change depending on your company’s priorities.
If you have an automated system, all these reports can be checked anytime—even daily— to acquire the data. If Excel works for you, automation would make your systems a breeze. Still, the most advanced and convenient way to do accounting, especially on Amazon, is through software.
Here are the benefits of using software:
Many software allow a free trial, but most work on paid plans. Your investment is worth it with the automatic insights.
Efficient Amazon accounting means choosing the right accounting software for your business. Here are some of our top recommendations:
QuickBooks
Intuit's QuickBooks Online is one of the most popular and user-friendly, cloud-based accounting software out there. With the right third-party app, QuickBooks easily syncs to your Amazon seller central account, feeding the software with business transactions which you or your accountant can easily manage. Most Amazon sellers use this accounting software to handle their business finances.
Fetcher
If you’re only looking into accounting for Amazon FBA, you'll get more with Fetcher. This software can deliver you the following:
The order coverage Fetcher offers depends on the plan you will avail of.
Xero
Another popular choice among accountants and small business owners is the software Xero. You can use the functions of this free accounting software for a time and enjoy essential reports that management needs. Xero can also give you better features if you’re willing to pay.
Taxomate
As the name of this software suggests, Taxomate is a tool that can assist you with all your tax reports. It’s best if you use it hand-in-hand with the software QuickBooks or Xero. Whether you use FBA or FBM or sell in other marketplaces, your tax report will automatically generate.
GoDaddy
GoDaddy is the tool to use if you are an accounting beginner or would like to give it a try in handling your business accounting while looking for specialists to partner with. You can monitor the following on the platform:
The software also lets you create invoices if you’re participating in different marketplaces other than Amazon.
A2X
Another software you'll often hear in the Amazon accounting world is A2X, which should be combined with several other platforms to maximize its accounting capabilities. Note some of the important ones it can link to below:
Everything you need to know about your FBA expenses can be tracked and turned into easy-to-understand reports through A2X.
Now that you know all these nitty-gritty details about Amazon accounting, it is time to take action.
If you’re still relying on excel sheets, it’s time to level up your processes and reporting by moving to automated reports from software.
You have invested so much effort, time, and money to grow your business, so secure the ascension of your sales and growth of your store by ensuring your financial stability. We'd love to discuss how we can help you with Amazon accounting. Contact Unloop now.
Starting an Amazon business requires essential bookkeeping and accounting to support your growth in the highly competitive marketplace. The vast scale of Amazon attracts numerous sellers and buyers, offering significant growth potential. Proper Amazon seller accounting is vital for identifying and capitalizing on these opportunities.
With the potential volume of transactions possible for every Amazon seller, it's important to understand the role accounting and bookkeeping play to ensure a smooth-sailing business. These can be the difference between stagnation and achieving your desired income level.
So let Unloop tackle these important business facets.
If you're an absolute beginner or have little idea about bookkeeping, you must get educated. Invest time in knowing the basics of bookkeeping and how it works.
If you have some idea already, reviewing the basics will benefit you when setting up a proper accounting system for your FBA business. Consider the following:
Educating yourself with fundamental lessons on bookkeeping is crucial. From there, skim other bookkeeping principles. For example, you can look into the significance of assets, liabilities, and capital and how these three relate to each other.
You must understand the accounting cycle to get the gist of how bookkeeping services work. Bookkeepers follow the steps of the cycle to ensure proper recording and allocating of income and expenses.
You'll also learn double entry accounting and do trial balances. You can choose whether to dive deeper into the bookkeeping practice once you fully grasp how the accounting cycle works.
Once you've learned how the accounting cycle works, you can now practice or outsource it. But first, you must decide what accounting method you'll use. There are two:
This accounting method records the transaction on a cash-received basis. The actual money must be in your bank account to qualify as an official record.
Microentrepreneurs and other startup enterprises most commonly use cash accounting for its simple, straightforward, and accurate process. It works well for simple business transactions.
The accrual method involves a time element. It records transactions based on when the transaction happened, regardless of whether there's money paid or not.
Accrual accounting is more complex, but it provides more information for those who manage businesses involving multiple transactions. Some large-scale companies have more leeway regarding credit, so a big-ticket item sale may inevitably be paid later.
It's also possible for you to acquire products and pay for them later or in advance before the product arrives. Accrual accounting is useful when reflecting these transactions in your accounting records.
Amazon Seller Accounting refers to the financial management and record-keeping practices that sellers on the Amazon platform use to track and manage their business transactions. It involves:
Automated Amazon Accounting will give you a quick view of your business transactions and finances. These numbers will then guide you on future steps and whether your current strategies effectively make your business profitable and sustainable.
Accounting is the backbone of Amazon businesses—of any business, in fact. Monitoring your numbers keeps your online store afloat. But there are other benefits to accounting that every Amazon business owner should leverage.
Once you begin your business accounting, you can get plenty of reports to help you create strategies and make decisions.
Your business will only grow and move forward if you manage your money well. Part of proper financial management is quickly knowing the factors that hurt your business so you can inhibit these problems from happening. The key to this is proactive planning.
Common problems with financial management:
You can be at peace once you get in-house accountants or a third-party agency offering Amazon seller accounting services. You know your business finances are monitored. There will be individuals who can give you valuable insights about your business's current status and manage your growth.
With that, you'll have plenty of time for the different areas in managing your Amazon store and other online stores. You can also focus on developing your products to ensure quality and increase sales. All these steps are done with coherence to the financial status of your business.
Some strategies that company executives and accountants use are the Profit First Framework and Traditional Accounting.
If you are increasing your profit, you should set a good amount aside as your earnings first before spending the rest on expenses.
Your business financial strategy is like a map. Like any other plans you have for your business, it will serve as a guide to take you to a successful end.
When is an early time? It would be best if you start accounting the moment you start your business. Minding this only during tax season is a typical mistake sellers make. Monitoring your assets and liabilities should be done immediately.
The tasks you'll need to accomplish as an entrepreneur never ends, but fulfill first what ensures your business's survival and success. And that is accounting.
Attending webinars and taking courses about accounting will help, especially when you get reports from accountants. Still, it would be best to delegate this task to specialists offering accounting and bookkeeping services. All these details are best accomplished and planned with your store and product launch planning.
Whether it's an online or physical store, you should register your business for necessary permits as soon as you start the business—this is for taxes and other legal factors. Some sellers get too busy with other tasks to launch their stores that they forget to register for taxation, while some intentionally do not write. Doing this just increases the hassle. Your business will risk getting fined for not paying on time or at all.
Defining how much tax you must pay also ensures you know exactly how much money will come from your account. This practice will make your Profit First Framework easier to enact.
Amazon sellers, in particular, will encounter issues involving sales tax. All merchants in the marketplace have to remit this to authorities, which means tracking sales tax becomes a crucial part of their business activity. Even if Amazon is the one collecting sales tax, they only give you all the collections in a lump sum, and you still have to determine the portion of the sales tax you should remit to the government.
If you are a trained accountant with experience in handling Amazon Seller Central and other relevant tools, then you can control your own accounting. However, if you do not have a background in this area, it is better to delegate it to experts.
Your period-specific reviews should always have accounting reports. As a business owner you can personalize the reports you want to have and when. Here are some samples:
| Report | Details You Can include |
| Cash Flow Management Report | Quick ratio, current ratio, cash balance, days sales outstanding, days payable outstanding |
| Profit and Loss Report | Gross profit margin, operating expense (OPEX) ratio, operating profit margin, net profit margin, earnings before interest and tax, income statement, net profit |
| Financial Performance Report | Balance sheet, assets return, working capital ratio, equity return, debt-equity ratio |
| Financial Key Performance Indicators Report | Current working capital, current liabilities, cash conversion cycle, vendor payment error rate, working capital |
| Financial Statement | Revenue, gross profit, earning before Interest and tax (EBIT), operating expenses, net income, economic value added (EVA), berry ratio, employee satisfaction, customer satisfaction |
All these reports will be more pleasing to the eyes and easy to understand if you establish a template and maximize the usage of graphs. In addition, information contained in the reports are not fixed, which means they can change depending on your company’s priorities.
If you have an automated system, all these reports can be checked anytime—even daily— to acquire the data. If Excel works for you, automation would make your systems a breeze. Still, the most advanced and convenient way to do accounting, especially on Amazon, is through software.
Here are the benefits of using software:
Many software allow a free trial, but most work on paid plans. Your investment is worth it with the automatic insights.
Efficient Amazon accounting means choosing the right accounting software for your business. Here are some of our top recommendations:
QuickBooks
Intuit's QuickBooks Online is one of the most popular and user-friendly, cloud-based accounting software out there. With the right third-party app, QuickBooks easily syncs to your Amazon seller central account, feeding the software with business transactions which you or your accountant can easily manage. Most Amazon sellers use this accounting software to handle their business finances.
Fetcher
If you’re only looking into accounting for Amazon FBA, you'll get more with Fetcher. This software can deliver you the following:
The order coverage Fetcher offers depends on the plan you will avail of.
Xero
Another popular choice among accountants and small business owners is the software Xero. You can use the functions of this free accounting software for a time and enjoy essential reports that management needs. Xero can also give you better features if you’re willing to pay.
Taxomate
As the name of this software suggests, Taxomate is a tool that can assist you with all your tax reports. It’s best if you use it hand-in-hand with the software QuickBooks or Xero. Whether you use FBA or FBM or sell in other marketplaces, your tax report will automatically generate.
GoDaddy
GoDaddy is the tool to use if you are an accounting beginner or would like to give it a try in handling your business accounting while looking for specialists to partner with. You can monitor the following on the platform:
The software also lets you create invoices if you’re participating in different marketplaces other than Amazon.
A2X
Another software you'll often hear in the Amazon accounting world is A2X, which should be combined with several other platforms to maximize its accounting capabilities. Note some of the important ones it can link to below:
Everything you need to know about your FBA expenses can be tracked and turned into easy-to-understand reports through A2X.
Now that you know all these nitty-gritty details about Amazon accounting, it is time to take action.
If you’re still relying on excel sheets, it’s time to level up your processes and reporting by moving to automated reports from software.
You have invested so much effort, time, and money to grow your business, so secure the ascension of your sales and growth of your store by ensuring your financial stability. We'd love to discuss how we can help you with Amazon accounting. Contact Unloop 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.
Starting a business requires a lot of courage, effort, and resources. You'll need a solid business plan to see if your idea will work. An important aspect of this plan involves deciding what platform to incorporate into managing your finances. In this context, every business owner needs the Peachtree software, well-known for its excellent accounting capabilities.
Let’s uncover the various features of Peachtree to determine if it's the right and best accounting software for you and your business.
Business owners typically have three choices when handling their company's books and managing finances:
While they have their respective benefits, their usefulness depends on specific factors. The first option depends on the CPA's time working on the financial side of your business. The second option relies on cost. And for the last option, you must be extremely keen and careful when using the tool.
Thankfully, a modern accountant's toolkit has developed from pen and paper to sophisticated computer accounting software, like Peachtree (now Sage 50).
Peachtree accounting software enables small to mid-sized businesses to simplify their accounting processes, detect and reduce accounting issues, and save money in the long run.
Before discussing what Peachtree can bring, it's best first to learn what makes an accounting solution exceptional. What should small and mid-sized business entrepreneurs consider before purchasing any software?
The software should possess basic and advanced accounting features, such as
| 🧐 Another component to check is the software’s Enterprise Resource Planning (ERP) systems. The ERP system connects, organizes, and automates essential processes, such as accounting tasks, inventory management, and customer relationship management. Users can choose among three options, depending on their unique business needs: on-premise, cloud-based, or a combination. On-premise software is directly installed in the company’s systems, while cloud-based accounting software uploads data to a server. |
Let’s now delve into the nitty-gritty of the Peachtree software. What makes it the ideal accounting solution for small and medium-sized businesses?
This software essentially allows accountants and business owners to monitor, control, and manage a wide range of accounting tasks, including
Peachtree can also help you run your business more effectively by offering a time-saving, all-in-one solution for financial statements, customer billing, money flow, stock control, taxes, etc.
Below is a short demo on Peachtree or Sage 50 accounting to give you an overview of how the software functions.
Peachtree is a popular midsize business accounting software because it supplies the basic accounting features they need. But of course, there is more to it than you think.
Here are more benefits of using Peachtree.
One of the advantages of using Peachtree is that you can set it up in less than 30 minutes. You don't need to understand much about accounting to start running it. To set it up, you must include all information about the following:
On-screen guidelines are also provided for proper setup. Lastly, you can choose from the preloaded account in the general ledger or start creating your own in the Peachtree space.
The features in this software work like locating buttons on the screen. Peachtree’s ease of use stems from its easy-to-navigate user interface and simple command buttons. When you click a button, it redirects you straight to a corresponding window where you can enter all the requested details.
If you need accounting software that doesn't require a huge learning curve, Peachtree is right for you!
An even greater advantage of using Peachtree is it's a low-cost solution. According to Sage, you can pay anywhere from a few hundred bucks to a few thousand dollars depending on the version you buy. This feature is reasonable for the level of performance and efficiency that you get from Peachtree.
Peachtree is a complete accounting system. It's designed to handle various aspects of financial management for businesses, including tasks such as:
This software aims to provide a complete solution for your accounting needs.
Unfortunately, no software is flawless. Here are the factors and features that the small business accounting software needs improvement on:
If you're unfamiliar with accounting terms and inexperienced with technology, setting up and using accounting software might be time-consuming and difficult.
Sage 50 and Sage 50cloud are perfect for small to midsize businesses with a few hundred customers and accounts, but they are not recommended for corporations or fast-growing businesses.
Sage Accounting’s customer service can still be improved. According to some users, they're slow to respond, and some advisors may give conflicting information.
With all its features and drawbacks laid out, it’s time to learn how Peachtree ensures smooth, effortless, and error-free business accounting.
Despite these features, Peachtree accounting still has its blind spots. And with something as serious as accounting, blindspots will only hinder accuracy, financial performance, and overall growth.
For this reason, we’ve listed four ideal alternatives to Peachtree software that can help small to mid-sized companies: QuickBooks online, Xero Accounting, FreshBooks Accounting, and Wave Accounting.
Like any accounting tool, understanding Peachtree and knowing how to use it efficiently will make you better at recognizing revenue, doing business accounting with confidence, and analyzing the general financial activities of your business.
Even for accounting specialists, managing a company's information and providing accurate financial data on time can be complex and time-consuming. Business management software like Peachtree can make things much easier.
Its reporting and analysis feature allows you to create annual, quarterly, or weekly financial statements. This software can assist you whether you work for a large corporation, a group of corporations, or a small business. However, it also has limitations, so consider various factors when choosing your accounting software.
If you're having difficulty selecting and using a tool, Unloop is here to help! We deliver customized plans for ecommerce business founders and use the best accounting software to better understand and manage your business finances.
Book a call with us today!
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.
Starting a business requires a lot of courage, effort, and resources. You'll need a solid business plan to see if your idea will work. An important aspect of this plan involves deciding what platform to incorporate into managing your finances. In this context, every business owner needs the Peachtree software, well-known for its excellent accounting capabilities.
Let’s uncover the various features of Peachtree to determine if it's the right and best accounting software for you and your business.
Business owners typically have three choices when handling their company's books and managing finances:
While they have their respective benefits, their usefulness depends on specific factors. The first option depends on the CPA's time working on the financial side of your business. The second option relies on cost. And for the last option, you must be extremely keen and careful when using the tool.
Thankfully, a modern accountant's toolkit has developed from pen and paper to sophisticated computer accounting software, like Peachtree (now Sage 50).
Peachtree accounting software enables small to mid-sized businesses to simplify their accounting processes, detect and reduce accounting issues, and save money in the long run.
Before discussing what Peachtree can bring, it's best first to learn what makes an accounting solution exceptional. What should small and mid-sized business entrepreneurs consider before purchasing any software?
The software should possess basic and advanced accounting features, such as
| 🧐 Another component to check is the software’s Enterprise Resource Planning (ERP) systems. The ERP system connects, organizes, and automates essential processes, such as accounting tasks, inventory management, and customer relationship management. Users can choose among three options, depending on their unique business needs: on-premise, cloud-based, or a combination. On-premise software is directly installed in the company’s systems, while cloud-based accounting software uploads data to a server. |
Let’s now delve into the nitty-gritty of the Peachtree software. What makes it the ideal accounting solution for small and medium-sized businesses?
This software essentially allows accountants and business owners to monitor, control, and manage a wide range of accounting tasks, including
Peachtree can also help you run your business more effectively by offering a time-saving, all-in-one solution for financial statements, customer billing, money flow, stock control, taxes, etc.
Below is a short demo on Peachtree or Sage 50 accounting to give you an overview of how the software functions.
Peachtree is a popular midsize business accounting software because it supplies the basic accounting features they need. But of course, there is more to it than you think.
Here are more benefits of using Peachtree.
One of the advantages of using Peachtree is that you can set it up in less than 30 minutes. You don't need to understand much about accounting to start running it. To set it up, you must include all information about the following:
On-screen guidelines are also provided for proper setup. Lastly, you can choose from the preloaded account in the general ledger or start creating your own in the Peachtree space.
The features in this software work like locating buttons on the screen. Peachtree’s ease of use stems from its easy-to-navigate user interface and simple command buttons. When you click a button, it redirects you straight to a corresponding window where you can enter all the requested details.
If you need accounting software that doesn't require a huge learning curve, Peachtree is right for you!
An even greater advantage of using Peachtree is it's a low-cost solution. According to Sage, you can pay anywhere from a few hundred bucks to a few thousand dollars depending on the version you buy. This feature is reasonable for the level of performance and efficiency that you get from Peachtree.
Peachtree is a complete accounting system. It's designed to handle various aspects of financial management for businesses, including tasks such as:
This software aims to provide a complete solution for your accounting needs.
Unfortunately, no software is flawless. Here are the factors and features that the small business accounting software needs improvement on:
If you're unfamiliar with accounting terms and inexperienced with technology, setting up and using accounting software might be time-consuming and difficult.
Sage 50 and Sage 50cloud are perfect for small to midsize businesses with a few hundred customers and accounts, but they are not recommended for corporations or fast-growing businesses.
Sage Accounting’s customer service can still be improved. According to some users, they're slow to respond, and some advisors may give conflicting information.
With all its features and drawbacks laid out, it’s time to learn how Peachtree ensures smooth, effortless, and error-free business accounting.
Despite these features, Peachtree accounting still has its blind spots. And with something as serious as accounting, blindspots will only hinder accuracy, financial performance, and overall growth.
For this reason, we’ve listed four ideal alternatives to Peachtree software that can help small to mid-sized companies: QuickBooks online, Xero Accounting, FreshBooks Accounting, and Wave Accounting.
Like any accounting tool, understanding Peachtree and knowing how to use it efficiently will make you better at recognizing revenue, doing business accounting with confidence, and analyzing the general financial activities of your business.
Even for accounting specialists, managing a company's information and providing accurate financial data on time can be complex and time-consuming. Business management software like Peachtree can make things much easier.
Its reporting and analysis feature allows you to create annual, quarterly, or weekly financial statements. This software can assist you whether you work for a large corporation, a group of corporations, or a small business. However, it also has limitations, so consider various factors when choosing your accounting software.
If you're having difficulty selecting and using a tool, Unloop is here to help! We deliver customized plans for ecommerce business founders and use the best accounting software to better understand and manage your business finances.
Book a call with us today!
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 no room for compromise in managing the financial aspects of a small business. From expense tracking and business transactions to customer service and marketing, small business owners understand the relentless effort required to meet success. Many would turn to QuickBooks, a tool for small business owners.
Online businesses use this popular accounting software because of its user-friendly interface and robust support system. It has plenty of features to benefit you in every part of your business.
But for some, the question still remains: Is QuickBooks a long-term solution? Or is it a potential disaster waiting to happen? This article aims to clarify and address the concerns surrounding QuickBooks for small business owners.
As a non-accountant, using tools like QuickBooks can be frustrating. That’s because you know there’s something you’re doing wrong. You can’t pinpoint what it is or even realize how you committed them. You just know something’s not adding up (literally).
Like other businesses, you may be sucking the software in, booting up the computer, and trying your best to put the numbers in. Unfortunately, that’s where the mistake is often rooted, leaving small business owners reluctant to learn, invest, and familiarize themselves with the tool.
What are these QuickBooks mistakes entrepreneurs often make? Let’s find out below:
QuickBooks Online has a bank sync feature that downloads your bank account transactions. But these are not automatically categorized.
One chaotic mistake most businesses make is adding these synced transactions as entries without sorting them. This problem leads to disorganized journals and ledgers.
When transactions aren’t properly categorized, tracking income and expenses accurately becomes challenging. You may also struggle to identify areas where cost-cutting is needed.
Small business owners place a high value on financial clarity. They want to avoid any unnecessary confusion when it comes to managing their finances.
QuickBooks offers a useful feature that allows you to create sub-accounts under your main accounts. This feature can be a real asset for organizing your expenses efficiently, but surprisingly, many businesses aren't familiar with it. Let's dive into why you should consider using sub-accounts.
Certain sub-accounts can result in redundancy and clutter within your financial statements. Knowing the nature of the income or expenses is important before creating a separate account.
Some businesses worry that they may lose their transaction history with QuickBooks, and it’s easy to see why.
Deleting transactions is like removing a piece of a puzzle in a set. Even if the rest is in order, that missing piece may throw the entire thing off.
If you delete a transaction that’s supposed to be recorded, you must recreate it and fix the transaction amount. This can be a time-consuming and potentially error-prone process.
QuickBooks includes a feature that identifies and flags duplicate transactions for security purposes. But despite the protection, there are still circumstances where double entry can occur:
Another common mistake businesses make is the incorrect recording of loan payments within their accounting records.
Principal payments fulfilling the loan obligation must be debited as loans payable instead of a business expense. That’s because a loan payment is a liability. It should reflect on the balance sheet to accurately depict the company’s financial obligations.
On the other hand, the interests you pay that don’t form part of the original loan amount should be debited under interest expenses. This will land the amount on your income statement, reflecting the cost of borrowing funds.
In addition to deleting and duplicating transactions, some companies also struggle with locking their bookkeeping periods within QuickBooks.
Once you’re confident that every transaction in a certain period is balanced and correct, you must lock it. Failure to do so leaves the door open for possible tampering or unintended modifications.
You might believe that the only solution is to tweak accounts from past periods, but that's not recommended. If all previous periods are already balanced, you can resolve the issue by focusing solely on the current transactions.
While using accounting tools like QuickBooks may present its fair share of challenges for small business owners, their benefits are simply too good to pass up. We believe QuickBooks is worth every penny. Here’s why.
Accurate financial reports are the backbone of informed decision-making in business. You must have comprehensive data about your business finances to achieve such precision.
When you sign up for a QuickBooks plan, you will first be offered up-to-date books. This feature will help you provide and gather all the receipts and documents for the past months to complete a year of income and expense tracking.
You can generate reliable reports that clearly show your financial status.
One thing is certain—there are areas in your small business you can do independently. But relying on experts or software for accounting is still better.
You must establish accounting as a foundation from the beginning, helping you track the inflow and outflow of money. Organized finances will provide relief and clarity even as a one-person team.
As your business expands and evolves, incorporating an accounting tool like QuickBooks becomes essential. You’ll need to readily interpret data for decision-making.
This proactive approach partnered with a powerful accounting tool grants you peace of mind and better financial management.
In today’s dynamic business landscape, it is common for small business owners to sell their products on various ecommerce platforms like Amazon, Shopify, Etsy, Woocommerce, and Squarespace. Given the multiple sales channels, inventory tracking becomes paramount.
QuickBooks offers a unified view of your business performance and enables you to input data from sales across different platforms and update inventory levels when you replenish your supplies. This streamlined process ensures that your inventory records remain precise and updated.
Do not compare software per dime if you are trying to decide which one to have. Check the offers in every plan as compared with another accounting software instead. By comparing the programs and their offers, you’ll see if the investment is worth it.
Here’s QuickBooks’ subscription plans as of this writing:
Some accounting software may limit expense tracking for their basic plan. Still, you’ll get this plus unlimited invoices in all QuickBooks plans.
Even with the basic plan, you can manage up to 1099 contractors, keeping your businesses committed to tax obligations. This means your tax deductions are taken care of. Cash flow and financial reporting are also all covered.
| Remember: Affordability is not solely about the price you pay but the value you receive. |
Calculating your tax is a huge challenge for seasoned and new business owners. Luckily, the best accounting software like QuickBooks is here to lend a helping hand.
QuickBooks facilitates the tax calculation process by compiling your tax return based on your net income—the difference between your total income and total expenses. Then, it will automatically provide the data you need for your tax returns.
Furthermore, QuickBooks can provide more accurate sales taxes if you provide the necessary details, such as your country's type of taxes, product or service's tax category, and shipping location. This feature helps you maintain compliance and alleviate the burden of tax-related complexities.
Gone are the days when small businesses solely relied on traditional payment methods. Today, embracing streamlined online payments is becoming the norm.
You can now experience hassle-free payment transactions with tools like QuickBooks. One of its best features is that customers can pay you online. It has integrated third-party payment apps such as Paypal, but it also has a built-in tool called QuickBooks Payments, which you can use to send an electronic invoice to your customers.
QuickBooks has scaled up and dispersed into different versions to fit every type of business out there, especially small ones. Here are the versions worth considering:
QuickBooks Online (QBO) revolutionizes how small businesses oversee their finances with cloud technology. You can access your books using the QuickBooks mobile app, downloadable from the app store. This makes it ideal for nomadic entrepreneurs or people who don't want extra hardware setup or software installation costs.
QuickBooks has kept pace with digital growth by enabling integration and access to ecommerce sites like Shopify and Amazon. Whether at home, in the office, or on the go, you can conveniently check the state of your business and make informed decisions anytime, anywhere.
Moreover, QuickBooks prioritizes the security of your business data. It provides a unique ID system granting secure access to your QuickBooks Online account, protecting your financial information.
If you spend more time on an office desk, you will enjoy QuickBooks Pro's features. This QuickBooks version is one of the three accounting software for desktops or PCs.
Despite its limited accessibility and backup, QuickBooks Pro excels in certain areas, such as in-depth payroll management and more features than QuickBooks Online. This tool helps you save time and minimize errors, from employee salary calculations to generating payroll reports.
If you’re also not confident about QBO's safety features, QuickBooks Pro is potentially more secure for your ecommerce business.
QuickBooks Premier is the second QuickBooks desktop that offers more functions than QuickBooks Pro. These are just some of the functions it offers:
QuickBooks Premier is a great tool for growing online businesses because it has tailored-fit reports for the type of industry you're in. You can predict your profitability by tracking your largest sources of income.
Third-party service providers such as freelancers or real estate agents can now use QuickBooks. This QuickBooks version is also cloud-based and available on your mobile phone.
What sets it apart from QBO or QuickBooks Desktop is it offers to track your business expenses and personal finance and create tax automation. However, you can't upgrade it to any other version. So if you have goals of expanding your remote workforce or small business, this won't work for you in the long run.
QuickBooks Mac is designed for online business owners who use Apple computers. It has similar features to the QBO and Desktop versions but is ideally suited for QuickBooks small business users on Macs.
With its compatibility with the Mac ecosystem and features geared towards small business needs, QuickBooks for Mac is an ideal choice for Apple-based online business owners seeking efficient financial management.
Whether you've been in business for a while or have only just started, you only need to set up a few things before hitting the ground running. The rest you can choose to leave to accounting experts.
Here's what you should pay attention to when you set up QuickBooks for your business.
This is where you set up all the essential information about your business, such as the type of business entity, invoice terms, accounting method, tax forms, and more. These will affect income and sales tax reporting as you move forward.
How to create an account?
The chart of accounts is mandatory information before you start recording transactions in QuickBooks because this is where you input initial business balances.
Want to view your financial transactions?
You’ll gain access to a complete list of predefined account categories, including assets, liabilities, equity, income, and expenses. You can customize these accounts based on your specific business needs.
Connecting a bank account to QuickBooks helps you sync existing transactions from your bank into QuickBooks. This process allows for easier bank reconciliation and ensures that QuickBooks' balances match the ones in the designated business accounts.
To sync bank accounts:
Setting up your balance is mainly about putting all the numbers from your books into QuickBooks. You enter the opening or current amounts of balance sheet accounts and identify unclassified transactions from the bank account synced to the accounting software. This cleans up your journal and ledger entries in QuickBooks and gives you accurate financial reporting.
To enter the opening balance:
QuickBooks users need to add buyers and vendors. This is the only way for them to record and track incoming revenues and supplier payments identified as short-term debt or credit.
For customers:
For vendors:
Adding products and services is the way to record revenue coming from physical or online sales.
To set up your products or services:
You can fill out the product or service name and enter the product's SKU number if you do inventory management. You can also enter your product or service's sales price or rate.
To sum it up, QuickBooks is a recipe for success, but effectively connecting your small business to this accounting software starts with proper knowledge and setup. If you have installed this recently and don't know how to maximize it, you might end up with expensive junk.
The success of your business all comes from using your resources optimally. Fortunately, Unloop is adept with the way this accounting software works. Once you hand over your accounting or bookkeeping, let us work while you focus on your business. Truly, it's like putting your QuickBooks software for business on autopilot.
Talk to us if you're afraid of making QuickBooks mistakes. Book a call today!
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 no room for compromise in managing the financial aspects of a small business. From expense tracking and business transactions to customer service and marketing, small business owners understand the relentless effort required to meet success. Many would turn to QuickBooks, a tool for small business owners.
Online businesses use this popular accounting software because of its user-friendly interface and robust support system. It has plenty of features to benefit you in every part of your business.
But for some, the question still remains: Is QuickBooks a long-term solution? Or is it a potential disaster waiting to happen? This article aims to clarify and address the concerns surrounding QuickBooks for small business owners.
As a non-accountant, using tools like QuickBooks can be frustrating. That’s because you know there’s something you’re doing wrong. You can’t pinpoint what it is or even realize how you committed them. You just know something’s not adding up (literally).
Like other businesses, you may be sucking the software in, booting up the computer, and trying your best to put the numbers in. Unfortunately, that’s where the mistake is often rooted, leaving small business owners reluctant to learn, invest, and familiarize themselves with the tool.
What are these QuickBooks mistakes entrepreneurs often make? Let’s find out below:
QuickBooks Online has a bank sync feature that downloads your bank account transactions. But these are not automatically categorized.
One chaotic mistake most businesses make is adding these synced transactions as entries without sorting them. This problem leads to disorganized journals and ledgers.
When transactions aren’t properly categorized, tracking income and expenses accurately becomes challenging. You may also struggle to identify areas where cost-cutting is needed.
Small business owners place a high value on financial clarity. They want to avoid any unnecessary confusion when it comes to managing their finances.
QuickBooks offers a useful feature that allows you to create sub-accounts under your main accounts. This feature can be a real asset for organizing your expenses efficiently, but surprisingly, many businesses aren't familiar with it. Let's dive into why you should consider using sub-accounts.
Certain sub-accounts can result in redundancy and clutter within your financial statements. Knowing the nature of the income or expenses is important before creating a separate account.
Some businesses worry that they may lose their transaction history with QuickBooks, and it’s easy to see why.
Deleting transactions is like removing a piece of a puzzle in a set. Even if the rest is in order, that missing piece may throw the entire thing off.
If you delete a transaction that’s supposed to be recorded, you must recreate it and fix the transaction amount. This can be a time-consuming and potentially error-prone process.
QuickBooks includes a feature that identifies and flags duplicate transactions for security purposes. But despite the protection, there are still circumstances where double entry can occur:
Another common mistake businesses make is the incorrect recording of loan payments within their accounting records.
Principal payments fulfilling the loan obligation must be debited as loans payable instead of a business expense. That’s because a loan payment is a liability. It should reflect on the balance sheet to accurately depict the company’s financial obligations.
On the other hand, the interests you pay that don’t form part of the original loan amount should be debited under interest expenses. This will land the amount on your income statement, reflecting the cost of borrowing funds.
In addition to deleting and duplicating transactions, some companies also struggle with locking their bookkeeping periods within QuickBooks.
Once you’re confident that every transaction in a certain period is balanced and correct, you must lock it. Failure to do so leaves the door open for possible tampering or unintended modifications.
You might believe that the only solution is to tweak accounts from past periods, but that's not recommended. If all previous periods are already balanced, you can resolve the issue by focusing solely on the current transactions.
While using accounting tools like QuickBooks may present its fair share of challenges for small business owners, their benefits are simply too good to pass up. We believe QuickBooks is worth every penny. Here’s why.
Accurate financial reports are the backbone of informed decision-making in business. You must have comprehensive data about your business finances to achieve such precision.
When you sign up for a QuickBooks plan, you will first be offered up-to-date books. This feature will help you provide and gather all the receipts and documents for the past months to complete a year of income and expense tracking.
You can generate reliable reports that clearly show your financial status.
One thing is certain—there are areas in your small business you can do independently. But relying on experts or software for accounting is still better.
You must establish accounting as a foundation from the beginning, helping you track the inflow and outflow of money. Organized finances will provide relief and clarity even as a one-person team.
As your business expands and evolves, incorporating an accounting tool like QuickBooks becomes essential. You’ll need to readily interpret data for decision-making.
This proactive approach partnered with a powerful accounting tool grants you peace of mind and better financial management.
In today’s dynamic business landscape, it is common for small business owners to sell their products on various ecommerce platforms like Amazon, Shopify, Etsy, Woocommerce, and Squarespace. Given the multiple sales channels, inventory tracking becomes paramount.
QuickBooks offers a unified view of your business performance and enables you to input data from sales across different platforms and update inventory levels when you replenish your supplies. This streamlined process ensures that your inventory records remain precise and updated.
Do not compare software per dime if you are trying to decide which one to have. Check the offers in every plan as compared with another accounting software instead. By comparing the programs and their offers, you’ll see if the investment is worth it.
Here’s QuickBooks’ subscription plans as of this writing:
Some accounting software may limit expense tracking for their basic plan. Still, you’ll get this plus unlimited invoices in all QuickBooks plans.
Even with the basic plan, you can manage up to 1099 contractors, keeping your businesses committed to tax obligations. This means your tax deductions are taken care of. Cash flow and financial reporting are also all covered.
| Remember: Affordability is not solely about the price you pay but the value you receive. |
Calculating your tax is a huge challenge for seasoned and new business owners. Luckily, the best accounting software like QuickBooks is here to lend a helping hand.
QuickBooks facilitates the tax calculation process by compiling your tax return based on your net income—the difference between your total income and total expenses. Then, it will automatically provide the data you need for your tax returns.
Furthermore, QuickBooks can provide more accurate sales taxes if you provide the necessary details, such as your country's type of taxes, product or service's tax category, and shipping location. This feature helps you maintain compliance and alleviate the burden of tax-related complexities.
Gone are the days when small businesses solely relied on traditional payment methods. Today, embracing streamlined online payments is becoming the norm.
You can now experience hassle-free payment transactions with tools like QuickBooks. One of its best features is that customers can pay you online. It has integrated third-party payment apps such as Paypal, but it also has a built-in tool called QuickBooks Payments, which you can use to send an electronic invoice to your customers.
QuickBooks has scaled up and dispersed into different versions to fit every type of business out there, especially small ones. Here are the versions worth considering:
QuickBooks Online (QBO) revolutionizes how small businesses oversee their finances with cloud technology. You can access your books using the QuickBooks mobile app, downloadable from the app store. This makes it ideal for nomadic entrepreneurs or people who don't want extra hardware setup or software installation costs.
QuickBooks has kept pace with digital growth by enabling integration and access to ecommerce sites like Shopify and Amazon. Whether at home, in the office, or on the go, you can conveniently check the state of your business and make informed decisions anytime, anywhere.
Moreover, QuickBooks prioritizes the security of your business data. It provides a unique ID system granting secure access to your QuickBooks Online account, protecting your financial information.
If you spend more time on an office desk, you will enjoy QuickBooks Pro's features. This QuickBooks version is one of the three accounting software for desktops or PCs.
Despite its limited accessibility and backup, QuickBooks Pro excels in certain areas, such as in-depth payroll management and more features than QuickBooks Online. This tool helps you save time and minimize errors, from employee salary calculations to generating payroll reports.
If you’re also not confident about QBO's safety features, QuickBooks Pro is potentially more secure for your ecommerce business.
QuickBooks Premier is the second QuickBooks desktop that offers more functions than QuickBooks Pro. These are just some of the functions it offers:
QuickBooks Premier is a great tool for growing online businesses because it has tailored-fit reports for the type of industry you're in. You can predict your profitability by tracking your largest sources of income.
Third-party service providers such as freelancers or real estate agents can now use QuickBooks. This QuickBooks version is also cloud-based and available on your mobile phone.
What sets it apart from QBO or QuickBooks Desktop is it offers to track your business expenses and personal finance and create tax automation. However, you can't upgrade it to any other version. So if you have goals of expanding your remote workforce or small business, this won't work for you in the long run.
QuickBooks Mac is designed for online business owners who use Apple computers. It has similar features to the QBO and Desktop versions but is ideally suited for QuickBooks small business users on Macs.
With its compatibility with the Mac ecosystem and features geared towards small business needs, QuickBooks for Mac is an ideal choice for Apple-based online business owners seeking efficient financial management.
Whether you've been in business for a while or have only just started, you only need to set up a few things before hitting the ground running. The rest you can choose to leave to accounting experts.
Here's what you should pay attention to when you set up QuickBooks for your business.
This is where you set up all the essential information about your business, such as the type of business entity, invoice terms, accounting method, tax forms, and more. These will affect income and sales tax reporting as you move forward.
How to create an account?
The chart of accounts is mandatory information before you start recording transactions in QuickBooks because this is where you input initial business balances.
Want to view your financial transactions?
You’ll gain access to a complete list of predefined account categories, including assets, liabilities, equity, income, and expenses. You can customize these accounts based on your specific business needs.
Connecting a bank account to QuickBooks helps you sync existing transactions from your bank into QuickBooks. This process allows for easier bank reconciliation and ensures that QuickBooks' balances match the ones in the designated business accounts.
To sync bank accounts:
Setting up your balance is mainly about putting all the numbers from your books into QuickBooks. You enter the opening or current amounts of balance sheet accounts and identify unclassified transactions from the bank account synced to the accounting software. This cleans up your journal and ledger entries in QuickBooks and gives you accurate financial reporting.
To enter the opening balance:
QuickBooks users need to add buyers and vendors. This is the only way for them to record and track incoming revenues and supplier payments identified as short-term debt or credit.
For customers:
For vendors:
Adding products and services is the way to record revenue coming from physical or online sales.
To set up your products or services:
You can fill out the product or service name and enter the product's SKU number if you do inventory management. You can also enter your product or service's sales price or rate.
To sum it up, QuickBooks is a recipe for success, but effectively connecting your small business to this accounting software starts with proper knowledge and setup. If you have installed this recently and don't know how to maximize it, you might end up with expensive junk.
The success of your business all comes from using your resources optimally. Fortunately, Unloop is adept with the way this accounting software works. Once you hand over your accounting or bookkeeping, let us work while you focus on your business. Truly, it's like putting your QuickBooks software for business on autopilot.
Talk to us if you're afraid of making QuickBooks mistakes. Book a call today!
Shopify is one of the biggest ecommerce platforms that allow millions of merchants to sell their goods online. As of now, the Shopify platform has merchants in 175 different countries. Starting your online selling business is the easy part. You can start selling by determining the products to sell and setting up your account. But keeping your business running is an entirely different story.
If you're a merchant, you know that most goods are levied with taxes. But depending on where in the world you are selling, the tax rates may differ, and you must get them right when setting up your taxes in your Shopify admin profile. Understanding and managing your taxes will help you collect them easily and properly.
Here’s a quick guide to help you tax set-up in different locations.
The platform automatically collects Shopify sales tax to help merchants manage tax collection conveniently. But for this to work, you must input the correct information in your set-up process. Here are some important guidelines you should know of.
For sellers in the United States, you have two options upon setting up your taxes. You can select automatic tax collection if it applies to your location, and the other option is manually specifying the tax rates depending on your state. From here, your tax setting can be:
Suppose you're a Shopify seller in Canada. In that case, it's your responsibility to go directly to your local agencies and determine if you can charge your customers' sales tax, and identify the proper rate so you can collect the taxes properly. From here, you need to set up a GST/HST account under the following conditions:
After setting your GST/HST account, you start collecting taxes for your Shopify products. Shopify tax documents are available in your admin account. You can use these tax reports to file and remit your tax collection to your local tax revenue agency.
Shopify is also available to countries outside the US and Canada. You can check their list to see if the country you're in makes you eligible to start a Shopify business. The process is almost similar to Canadian sellers. You must also determine if you can charge sales tax on your goods. Similarly, different countries also vary in tax rates, so check with your local government or consult a tax professional to help set up your account properly.
Does Shopify collect sales tax for you? Yes! Almost all ecommerce selling platforms automatically collect sales tax once your customers check out their item. All you need to do is file and remit the sales tax to the revenue agency. Unfortunately, everything involving taxes is confusing and involves a lot of work. Good thing that there are taxation software options that can help automate your tax reports and other taxation workloads.
Let's check the three best tax software compatible with the Shopify platform.
TaxJar is a great application if you want help ensuring that you charge the correct tax rate on your products. Although Shopify provides documents for tax collected, they’re not as detailed as what TaxJar can give. TaxJar can automatically publish detailed tax reports, which can help you file your taxes appropriately. In addition, this application can show the information on charged taxes no matter where state or country you sell your products.
Avalara is another tax application that helps automate reports you can use for filling. This software syncs all your sales data to determine when you must file for your tax and how much you are due in that specific filing period. Moreover, Avalara is compatible with almost all ecommerce platforms. This application can consolidate all your sales from different selling platforms so you can file all your sales taxes in a single report.
This application will help you swiftly organize your taxes, especially if you sell products on different platforms.
Having the Quaderno is like hiring your personal, professional accountant. This application can do so much to help with managing your business. Quaderno is an all-around tax assistant. This application can take care of your invoices and can do bookkeeping for your business. In addition, this application is highly customizable so that you can use it depending on your business's needs.
Collecting tax is a crucial part of online business wherever in the world you are selling. There's also no denying that managing taxes is one of the most confusing and time-consuming parts of running a business. No proper tax management can be the reason for your business's downfall, so it is crucial to be very keen on taxes upon starting.
We hope this guideline gives you a clearer view of setting up your taxes. If you still find it too hard to manage, check out Unloop services that will run your Shopify tax reporting. We have professionals who are well-versed in the ecommerce market, so you will always be on top of your taxes.
Don't forget to book a call with us today and start your business’s growth in our hands.
Shopify is one of the biggest ecommerce platforms that allow millions of merchants to sell their goods online. As of now, the Shopify platform has merchants in 175 different countries. Starting your online selling business is the easy part. You can start selling by determining the products to sell and setting up your account. But keeping your business running is an entirely different story.
If you're a merchant, you know that most goods are levied with taxes. But depending on where in the world you are selling, the tax rates may differ, and you must get them right when setting up your taxes in your Shopify admin profile. Understanding and managing your taxes will help you collect them easily and properly.
Here’s a quick guide to help you tax set-up in different locations.
The platform automatically collects Shopify sales tax to help merchants manage tax collection conveniently. But for this to work, you must input the correct information in your set-up process. Here are some important guidelines you should know of.
For sellers in the United States, you have two options upon setting up your taxes. You can select automatic tax collection if it applies to your location, and the other option is manually specifying the tax rates depending on your state. From here, your tax setting can be:
Suppose you're a Shopify seller in Canada. In that case, it's your responsibility to go directly to your local agencies and determine if you can charge your customers' sales tax, and identify the proper rate so you can collect the taxes properly. From here, you need to set up a GST/HST account under the following conditions:
After setting your GST/HST account, you start collecting taxes for your Shopify products. Shopify tax documents are available in your admin account. You can use these tax reports to file and remit your tax collection to your local tax revenue agency.
Shopify is also available to countries outside the US and Canada. You can check their list to see if the country you're in makes you eligible to start a Shopify business. The process is almost similar to Canadian sellers. You must also determine if you can charge sales tax on your goods. Similarly, different countries also vary in tax rates, so check with your local government or consult a tax professional to help set up your account properly.
Does Shopify collect sales tax for you? Yes! Almost all ecommerce selling platforms automatically collect sales tax once your customers check out their item. All you need to do is file and remit the sales tax to the revenue agency. Unfortunately, everything involving taxes is confusing and involves a lot of work. Good thing that there are taxation software options that can help automate your tax reports and other taxation workloads.
Let's check the three best tax software compatible with the Shopify platform.
TaxJar is a great application if you want help ensuring that you charge the correct tax rate on your products. Although Shopify provides documents for tax collected, they’re not as detailed as what TaxJar can give. TaxJar can automatically publish detailed tax reports, which can help you file your taxes appropriately. In addition, this application can show the information on charged taxes no matter where state or country you sell your products.
Avalara is another tax application that helps automate reports you can use for filling. This software syncs all your sales data to determine when you must file for your tax and how much you are due in that specific filing period. Moreover, Avalara is compatible with almost all ecommerce platforms. This application can consolidate all your sales from different selling platforms so you can file all your sales taxes in a single report.
This application will help you swiftly organize your taxes, especially if you sell products on different platforms.
Having the Quaderno is like hiring your personal, professional accountant. This application can do so much to help with managing your business. Quaderno is an all-around tax assistant. This application can take care of your invoices and can do bookkeeping for your business. In addition, this application is highly customizable so that you can use it depending on your business's needs.
Collecting tax is a crucial part of online business wherever in the world you are selling. There's also no denying that managing taxes is one of the most confusing and time-consuming parts of running a business. No proper tax management can be the reason for your business's downfall, so it is crucial to be very keen on taxes upon starting.
We hope this guideline gives you a clearer view of setting up your taxes. If you still find it too hard to manage, check out Unloop services that will run your Shopify tax reporting. We have professionals who are well-versed in the ecommerce market, so you will always be on top of your taxes.
Don't forget to book a call with us today and start your business’s growth in our hands.
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.
It's easy to familiarize yourself with your state's tax laws and apply these duties to the sales you make. But what about other states' sales tax regulations such as the Amazon Marketplace Facilitator Tax? As you expand your business, your sales tax obligations scale as well.
You may be wondering if Amazon is collecting sales tax and other duties. Getting these details right is crucial to your business because you can accurately jot down details on the books. Also, you can declare your correct taxable income when tax season comes.
Let Unloop help you by answering the most pressing questions about Amazon taxes and duties. So whether you're an Amazon newbie or a seasoned seller who has some questions, this post has got you covered!
As a seller, it would be best to know the ins and outs of sales tax collection, but if you are still learning, there is no need to halt your plans for your Amazon business.
The Marketplace Facilitator law assigns Amazon as a marketplace facilitator. All marketplace facilitators have a sales tax collection obligation. This means they must collect and remit sales tax to authorities on the sellers' behalf.
The eCommerce giant will handle sales taxes for you in the following sales tax nexus where the Marketplace Facilitator Laws are in effect:
With your sales taxes handled, you can focus on optimizing your store and growing your business.
Each US state has its Marketplace Facilitator legislation for remitting sales tax. For some states like the ones below, the sales tax rate is destination-based.
Meanwhile, sales tax rates for these states are origin-based.
Some states, like the ones below, have unique sales tax laws that govern the remittance of their local sales taxes.
Sales are sensitive to change, so seek assistance when it comes to identifying sales tax you must remit. It's a good thing that the marketplace facilitator has a tax monitoring system capable of detecting these changes. With this, remitting sales tax will always be accurate.
You can access the Marketplace Tax Collection Report and other sales tax reports on your Amazon Seller Central account. You can check out this report to see how much sales taxes Amazon has remitted to various tax authorities.
To access it, click the "Reports" category and "Tax Document Library." Next, choose "Marketplace Tax Collection Report" after clicking the "Generate a tax report" button.
You can use the data you will get in various ways, but initially, you'll get an idea of how much sales taxes you will collect if you are selling on other platforms. Then, through it, you can generate your after-tax income.
As third party sellers on Amazon, taxes you need to pay are among what you need to check during tax season. Amazon will monitor your gross third party sales. If it reaches $20,000 and beyond 200 transactions, Amazon will report it to the Internal Revenue Service (IRS) through the 1099 form.
The form includes all your self-fulfilled or Amazon FBA sales, buyers' shipping and gift-wrapping payments, and promotional rebates.
This will be the basis of your income tax. However, you have to note that Amazon reports unadjusted gross sales. The platform includes refunds, but with the help of accountants, you can reconcile your final income to be taxed.
It's important to note that third party sellers can be exempted from sales tax liability. Sellers can check if they are eligible for sales tax permits before they pay sales tax.
Log in to your Amazon Seller Central account as a primary user so you can click the "Tax Document Library" in the "Reports" category. Then, pick the year you wish to see and the "Form 1099." You'll only get the report when you've reached $20,000 or more than 200 transactions.
While accessing it online is the most encouraged form of 1099 acquisition, Amazon can also send the form via email and delivery. Just make sure to indicate this request during the tax interview. Provide valid email and physical addresses to ensure you'll receive the form.
Amazon seller sales tax and duties can be daunting, but we hope this article has answered some of your questions. If you still need assistance or have more questions, our team here at Unloop would be happy to help you navigate these waters and ensure sales tax compliance. We have a team of bookkeepers and accountants ready to assist you in your bookkeeping, accounts payable, forecasting, payroll, and tax needs. Feel free to give us a call. We'd love to discuss all the details with you!
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.
It's easy to familiarize yourself with your state's tax laws and apply these duties to the sales you make. But what about other states' sales tax regulations such as the Amazon Marketplace Facilitator Tax? As you expand your business, your sales tax obligations scale as well.
You may be wondering if Amazon is collecting sales tax and other duties. Getting these details right is crucial to your business because you can accurately jot down details on the books. Also, you can declare your correct taxable income when tax season comes.
Let Unloop help you by answering the most pressing questions about Amazon taxes and duties. So whether you're an Amazon newbie or a seasoned seller who has some questions, this post has got you covered!
As a seller, it would be best to know the ins and outs of sales tax collection, but if you are still learning, there is no need to halt your plans for your Amazon business.
The Marketplace Facilitator law assigns Amazon as a marketplace facilitator. All marketplace facilitators have a sales tax collection obligation. This means they must collect and remit sales tax to authorities on the sellers' behalf.
The eCommerce giant will handle sales taxes for you in the following sales tax nexus where the Marketplace Facilitator Laws are in effect:
With your sales taxes handled, you can focus on optimizing your store and growing your business.
Each US state has its Marketplace Facilitator legislation for remitting sales tax. For some states like the ones below, the sales tax rate is destination-based.
Meanwhile, sales tax rates for these states are origin-based.
Some states, like the ones below, have unique sales tax laws that govern the remittance of their local sales taxes.
Sales are sensitive to change, so seek assistance when it comes to identifying sales tax you must remit. It's a good thing that the marketplace facilitator has a tax monitoring system capable of detecting these changes. With this, remitting sales tax will always be accurate.
You can access the Marketplace Tax Collection Report and other sales tax reports on your Amazon Seller Central account. You can check out this report to see how much sales taxes Amazon has remitted to various tax authorities.
To access it, click the "Reports" category and "Tax Document Library." Next, choose "Marketplace Tax Collection Report" after clicking the "Generate a tax report" button.
You can use the data you will get in various ways, but initially, you'll get an idea of how much sales taxes you will collect if you are selling on other platforms. Then, through it, you can generate your after-tax income.
As third party sellers on Amazon, taxes you need to pay are among what you need to check during tax season. Amazon will monitor your gross third party sales. If it reaches $20,000 and beyond 200 transactions, Amazon will report it to the Internal Revenue Service (IRS) through the 1099 form.
The form includes all your self-fulfilled or Amazon FBA sales, buyers' shipping and gift-wrapping payments, and promotional rebates.
This will be the basis of your income tax. However, you have to note that Amazon reports unadjusted gross sales. The platform includes refunds, but with the help of accountants, you can reconcile your final income to be taxed.
It's important to note that third party sellers can be exempted from sales tax liability. Sellers can check if they are eligible for sales tax permits before they pay sales tax.
Log in to your Amazon Seller Central account as a primary user so you can click the "Tax Document Library" in the "Reports" category. Then, pick the year you wish to see and the "Form 1099." You'll only get the report when you've reached $20,000 or more than 200 transactions.
While accessing it online is the most encouraged form of 1099 acquisition, Amazon can also send the form via email and delivery. Just make sure to indicate this request during the tax interview. Provide valid email and physical addresses to ensure you'll receive the form.
Amazon seller sales tax and duties can be daunting, but we hope this article has answered some of your questions. If you still need assistance or have more questions, our team here at Unloop would be happy to help you navigate these waters and ensure sales tax compliance. We have a team of bookkeepers and accountants ready to assist you in your bookkeeping, accounts payable, forecasting, payroll, and tax needs. Feel free to give us a call. We'd love to discuss all the details with you!
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.
