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Michael Pignatelli, CPA
CEO, Unloop

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Financial forecasting is the backbone of good financial planning. Many things can affect a financial forecast other than numbers and some formulas. Fortunately for business owners, technology makes forecasting easier through financial forecasting software tools. 

Businesses use several budgeting and forecasting software to help predict future performance and plan future budgets. To help you choose which is best for your business, we've listed some of the best forecasting software options. 

6 Best Budgeting Forecasting Software Tools

Financial forecasting directly affects your budget planning, business strategy, and investments. Even a structured business model needs financial forecasting to prepare for the future. 

It's a big problem when businesses run out of cash or are unprepared for the surge of expenses to keep their business running and retain their clients. Accurate financial forecasts are valuable to every business, whether big or small. 

Most businesses start with an Excel spreadsheet to develop their financial forecasting. However, forecasting in spreadsheets can be complicated and restrictive due to the following reasons:

  • Data entry in spreadsheets is manual and highly prone to human error.
  • Excel sheets make it difficult to collaborate.
  • Without a central database, you still have to double-check formulas, references, and other data manually.

Forecasting in Excel is doable, but it is time-consuming and may not always be reliable. Developers continually make software solutions for more progressive, innovative, and convenient forecasting. 

Here are the top budgeting and forecasting software products you should check out. 

1. Cube

Cube is one of the top-rated forecasting software for businesses. It is the best budgeting and forecasting software for startup businesses that want to quickly transfer their data from manual spreadsheets to forecasting software without studying complicated interfaces. Here is a quick overview of its benefits:

  • Cube has a spreadsheet-style interface, so businesses that come from Excel won't have difficulty adapting to a new software solution.
  • It significantly lessens manual work and gives real-time data into your business's financial needs.  
  • The software gives you access to teams with expert experience in financial forecasting and budgeting.
  • It promotes faster workflows and is optimized for easier collaboration. 

Some of the noteworthy functions of this financial planning software include:

✅Automatic data consolidation
✅Bidirectional Microsoft Excel and Google Sheets integrations
✅User-based controls
✅A centralized database for formulas and other data
✅Customizable dashboards and reports

2. AnaPlan

AnaPlan forecasting software is designed to plan for complex scenarios and do intelligent forecasting for faster and more accurate decision-making. It is ideal for bigger businesses with a dedicated IT team that can handle complex software controls. Here are some key benefits of using AnaPlan:

✅It lets you overcome financial and operational planning challenges using user-owned business models.
✅It keeps you updated with the ever-changing marketing conditions using AnaPlan's model engine.
✅Allows you to view business plans on detailed levels to see how they can affect your business in real-time.
✅Increases the accuracy of your decisions and business outcomes by using predictive analysis and what-if analysis.

3. Planful

Planful is an affordable cloud-based solution for structured and dynamic planning, consolidation, and reporting that suits mid-market companies. Planful offers the following features and benefits:

✅ An annual operating plan to help define your company's blueprint for a year.
✅ Workforce planning helps an organization hone employees to work at their best performance.
✅ Scenario analysis to explore every possible option and steer towards it at a moment's notice.
✅ Financial reporting for key financial insights to make better and quicker decisions: This reporting is fully automated and eliminates errors, so you can trust the data you have on hand.

Planful also has AI-enhanced operations and functions that allow businesses to lessen the number of people they need to hire in the financial department. This reduces expenses in hiring staff. 

4. SAS Forecast Server

SAS Forecast Server is one of the popular business forecasting tools because of its ability to generate accurate forecasts quickly. But more than quick forecasts, SAS has many great features to let you be in full control of your business financials:  

The forecasting software has an easy-to-use GUI that can:
✅Generate automatic forecasts in batches or interactively.
✅Build and reconcile forecasts created in varying time intervals.
✅Publish forecasting results via the company's portal, the internet, or hard copy.
Its scalability and modeling also offer the following:
✅Freedom to choose the level of automation for the forecasting process
✅Creation of new models by combining two older business models to create more accurate forecasting results
✅Enhanced performance capabilities through the multi-threading of forecasting and diagnostic engines

The SAS forecasting software has many great and advanced features, which makes this forecasting software good for small businesses and large enterprises. However, it can take some time for business owners to familiarize themselves with the software, but the product has official demo videos to help new users.

5. Bizview Financial Planning and Analysis Software

Bizview is another cloud-based solution that can streamline your planning, forecasting, and budgeting processes in one software. With a stable internet connection, you can access this software anytime and on any device.

Here are some of the features of Insight Software's Bizview:

✅Flexibility, so you can control the software to match your business's needs.
✅It continuously monitors and updates forecasts for the entire year to give your business better insights.
✅It develops accurate financial plans across your entire business, including sales budgets, productions budgets, employee budgets, etc.
✅It allows you to access data from your ERP system and other data sources to create reports without relying on ITs.

Bizview has an interactive Excel-like interface, so many business owners prefer this software. It is also the most affordable software you can use for small businesses.

6. Streamline Forecasting Software

Streamline is the leading forecasting software for the first quarter of 2023. Its revenue forecasting processes are realistic, innovative, and quick to ensure that your business is on the right track when planning budgets and making strategic decisions. This budgeting and forecasting software suits big and small businesses

Here are some of the key features of this forecasting tool:

✅The software provides seamless integration of your financial data. You can easily import operational data from your system to Streamline and automatically export financial projections to your ERP system.
✅The software has a scenario planning feature to analyze data and pinpoint potential issues that could happen so you can consider them in your business planning.
✅Financial predictions can involve inventory, cash flow forecasting, and other factors affecting your finances.
✅It has AI-based forecasting capabilities, which ensure 99% accurate budget forecasting at all times.

Swift and Precise Financial Management and Forecasting With Unloop

There are hundreds of financial budgeting software available for businesses to use. It is just a matter of choosing the right software for your needs. The forecasting tools discussed are some of the best examples you can get for your business. But don't be afraid to explore and find budgeting and forecasting tools to suit your liking and needs.

If you need a budgeting, forecasting, and accounting professional, Unloop can do the job! Our services include revenue forecasting so that we can help small businesses like yours in their growth trajectory.

We use your business's historical data to determine and fix any pain points before they happen. We will also set your business up with an excellent and suitable reporting tool for accurate financial forecasts and continuous planning. 
Book a call with our experts today and monitor your financial performance!

Be Future Ready: The Best Financial Forecasting Software
Watch Now

Financial forecasting is the backbone of good financial planning. Many things can affect a financial forecast other than numbers and some formulas. Fortunately for business owners, technology makes forecasting easier through financial forecasting software tools. 

Businesses use several budgeting and forecasting software to help predict future performance and plan future budgets. To help you choose which is best for your business, we've listed some of the best forecasting software options. 

6 Best Budgeting Forecasting Software Tools

Financial forecasting directly affects your budget planning, business strategy, and investments. Even a structured business model needs financial forecasting to prepare for the future. 

It's a big problem when businesses run out of cash or are unprepared for the surge of expenses to keep their business running and retain their clients. Accurate financial forecasts are valuable to every business, whether big or small. 

Most businesses start with an Excel spreadsheet to develop their financial forecasting. However, forecasting in spreadsheets can be complicated and restrictive due to the following reasons:

  • Data entry in spreadsheets is manual and highly prone to human error.
  • Excel sheets make it difficult to collaborate.
  • Without a central database, you still have to double-check formulas, references, and other data manually.

Forecasting in Excel is doable, but it is time-consuming and may not always be reliable. Developers continually make software solutions for more progressive, innovative, and convenient forecasting. 

Here are the top budgeting and forecasting software products you should check out. 

1. Cube

Cube is one of the top-rated forecasting software for businesses. It is the best budgeting and forecasting software for startup businesses that want to quickly transfer their data from manual spreadsheets to forecasting software without studying complicated interfaces. Here is a quick overview of its benefits:

  • Cube has a spreadsheet-style interface, so businesses that come from Excel won't have difficulty adapting to a new software solution.
  • It significantly lessens manual work and gives real-time data into your business's financial needs.  
  • The software gives you access to teams with expert experience in financial forecasting and budgeting.
  • It promotes faster workflows and is optimized for easier collaboration. 

Some of the noteworthy functions of this financial planning software include:

✅Automatic data consolidation
✅Bidirectional Microsoft Excel and Google Sheets integrations
✅User-based controls
✅A centralized database for formulas and other data
✅Customizable dashboards and reports

2. AnaPlan

AnaPlan forecasting software is designed to plan for complex scenarios and do intelligent forecasting for faster and more accurate decision-making. It is ideal for bigger businesses with a dedicated IT team that can handle complex software controls. Here are some key benefits of using AnaPlan:

✅It lets you overcome financial and operational planning challenges using user-owned business models.
✅It keeps you updated with the ever-changing marketing conditions using AnaPlan's model engine.
✅Allows you to view business plans on detailed levels to see how they can affect your business in real-time.
✅Increases the accuracy of your decisions and business outcomes by using predictive analysis and what-if analysis.

3. Planful

Planful is an affordable cloud-based solution for structured and dynamic planning, consolidation, and reporting that suits mid-market companies. Planful offers the following features and benefits:

✅ An annual operating plan to help define your company's blueprint for a year.
✅ Workforce planning helps an organization hone employees to work at their best performance.
✅ Scenario analysis to explore every possible option and steer towards it at a moment's notice.
✅ Financial reporting for key financial insights to make better and quicker decisions: This reporting is fully automated and eliminates errors, so you can trust the data you have on hand.

Planful also has AI-enhanced operations and functions that allow businesses to lessen the number of people they need to hire in the financial department. This reduces expenses in hiring staff. 

4. SAS Forecast Server

SAS Forecast Server is one of the popular business forecasting tools because of its ability to generate accurate forecasts quickly. But more than quick forecasts, SAS has many great features to let you be in full control of your business financials:  

The forecasting software has an easy-to-use GUI that can:
✅Generate automatic forecasts in batches or interactively.
✅Build and reconcile forecasts created in varying time intervals.
✅Publish forecasting results via the company's portal, the internet, or hard copy.
Its scalability and modeling also offer the following:
✅Freedom to choose the level of automation for the forecasting process
✅Creation of new models by combining two older business models to create more accurate forecasting results
✅Enhanced performance capabilities through the multi-threading of forecasting and diagnostic engines

The SAS forecasting software has many great and advanced features, which makes this forecasting software good for small businesses and large enterprises. However, it can take some time for business owners to familiarize themselves with the software, but the product has official demo videos to help new users.

5. Bizview Financial Planning and Analysis Software

Bizview is another cloud-based solution that can streamline your planning, forecasting, and budgeting processes in one software. With a stable internet connection, you can access this software anytime and on any device.

Here are some of the features of Insight Software's Bizview:

✅Flexibility, so you can control the software to match your business's needs.
✅It continuously monitors and updates forecasts for the entire year to give your business better insights.
✅It develops accurate financial plans across your entire business, including sales budgets, productions budgets, employee budgets, etc.
✅It allows you to access data from your ERP system and other data sources to create reports without relying on ITs.

Bizview has an interactive Excel-like interface, so many business owners prefer this software. It is also the most affordable software you can use for small businesses.

6. Streamline Forecasting Software

Streamline is the leading forecasting software for the first quarter of 2023. Its revenue forecasting processes are realistic, innovative, and quick to ensure that your business is on the right track when planning budgets and making strategic decisions. This budgeting and forecasting software suits big and small businesses

Here are some of the key features of this forecasting tool:

✅The software provides seamless integration of your financial data. You can easily import operational data from your system to Streamline and automatically export financial projections to your ERP system.
✅The software has a scenario planning feature to analyze data and pinpoint potential issues that could happen so you can consider them in your business planning.
✅Financial predictions can involve inventory, cash flow forecasting, and other factors affecting your finances.
✅It has AI-based forecasting capabilities, which ensure 99% accurate budget forecasting at all times.

Swift and Precise Financial Management and Forecasting With Unloop

There are hundreds of financial budgeting software available for businesses to use. It is just a matter of choosing the right software for your needs. The forecasting tools discussed are some of the best examples you can get for your business. But don't be afraid to explore and find budgeting and forecasting tools to suit your liking and needs.

If you need a budgeting, forecasting, and accounting professional, Unloop can do the job! Our services include revenue forecasting so that we can help small businesses like yours in their growth trajectory.

We use your business's historical data to determine and fix any pain points before they happen. We will also set your business up with an excellent and suitable reporting tool for accurate financial forecasts and continuous planning. 
Book a call with our experts today and monitor your financial performance!

Read more

Cash flow forecasting can be tricky—it requires skills, attention to detail, and dedication. But when done right, cash flow forecasting can offer tremendous value and invaluable insight into the future of your startup business or project.

Many organizations face significant challenges while attempting this exercise, but some workarounds can help you achieve success in predicting your financial future with confidence.

In this blog post, we'll explore some common cash flow forecasting challenges and solutions for improving your forecasts' accuracy. With these tips, you'll have valuable information to make better decisions about where to allocate resources and set appropriate expectations for revenue and expenses.

Challenge #1: Not Knowing the Importance of Cash Flow Forecasts

As an owner of a startup business, at the beginning, your cash flow may be slow and manageable using manual bookkeeping and accounting. A common mistake would be sticking to this day-to-day cash flow monitoring system and not forecasting. Seeing only daily cash flow and having no visibility about your company's future income and expenses is like operating a business in the dark.

The Workaround

Understand that cash flow management is essential for all businesses, even startups. Know that with it, you can see how much income and expenses you’ll have daily, weekly, monthly, quarterly, or annually. As a result, you can use the data as the basis of your financial game plans. You can use it to decide the following:

  • When to invest
  • How much to save
  • What to do with your profits
  • How to increase your sales
  • How to minimize spending

Challenge #2: Limited Historical Data

Having limited historical data is common to startups either because owners have failed to store financial data in the past or because the business hasn’t been running for a significant period of time yet. Historical data is the most basic information needed when creating a cash flow forecast, and the absence of these numbers makes the forecast result less reliable. 

The Workaround

Despite the absence of historical data, there are still ways to get a reliable cash flow forecast. To begin, whether you lack past numbers because of a personal choice or not, it is time to invest in software and applications to help you track your business finances.

These apps and software can also help you conveniently create simulations, or before and after trials. Use the following data for your forecasts:

  • Current income and expenses
  • Any historical data available
  • Competitor data
  • Customer surveys
  • Economic, political, social, and environmental factors
  • Insights from experts

Challenge #3: Inaccurate Data Sources

The biggest enemy of a cash flow forecast is inaccurate data, which can happen when tracking income and expenses manually. Although Excel sheets are readily available (and free), they may lose your business money in the long run as human errors bring costly damages to your finances.

Inaccurate data leads to making bigger loans, being overconfident in forecasting income, making fewer investments, and saving less—all detrimental to your business growth.

The Workaround

The most efficient workaround to the data inaccuracy problem is bidding goodbye to your company's manual systems. Accept that part of growth is optimizing your bookkeeping and accounting technology so that you can track your finances better. 

Accounting software is highly automated, and you can also integrate various apps. As a result, you can minimize or even eradicate manual inputs, which can cause inaccurate data.

cash forecasting process

Challenge #4: The Absence of Interdepartmental Collaboration

If there are a couple of teams in your company, you’ll need input for their income and expenses. This task becomes a roadblock when there is no collaboration between different departments. When different teams do not practise open communication, you might get incomplete or erroneous financial data from them. Another challenge is not having an established system for workflow and data submission processes in the company. 

The Workaround

Excellent accountants and bookkeepers need to be well-versed in their tasks or have certifications and training to perform them correctly. On top of that, they should have communication skills and be team players. This is to make sure that they can connect to the various departments in your company to get the needed data. They also need to be forward thinkers to suggest and enact the best systems to make this data acquisition as smooth as possible for everyone.

Challenge #5: Unpredictable and Changing Variables

Expect that a cash flow forecast doesn’t mean you’ll get 100% accuracy, as the following variables are prone to changes:

  • Interest rates
  • Foreign exchange rates
  • Commodity prices
  • Sales taxes
  • Prices of raw materials
  • Customer payment behaviours

As a result, the final accounts receivable and payable won’t be exactly as what you forecasted.

The Workaround

The best workaround to ensure that you get the forecast closest to the truth is keeping numbers and data updated. Be in the know with the latest interest and foreign exchange rates. Know if there are changes in sales taxes and other tax dues you need to pay. If there are updates on commodity and raw material prices, they should also be reflected in your forecast. And do not forget about your customers too. Check sales trends to know when your peak sales occur.

Challenge #6: Skipping Forecasts and Actual Data Analysis

Successfully launching a cash flow forecast is not the end of the cash forecasting process, but it becomes a problem if you make it so. As we’ve learned, some variables are subject to change, so if one variable adjusts, the income and expenses will as well. If you keep on using the old data without any adjustments, your business finances will suffer these consequences:

  • It will disable you from adjusting your game plans accurately.
  • You won't be able to align your investments and spending, to your actual earnings and expenses. 
  • You won’t identify potential financial risks, so you’ll be unable to proactively stop them from happening.

The Workaround

The best way to do a cash flow projection and actual cash flow analysis is through the help of software. An accounting software already has the forecast and the latest data of your business stored. They also have templates to show a comparison of current cash flow and forecast data. With software, generating reports is easier, and you can regularly analyze data to see if you need to optimize your cash flow plans and strategies.

cash forecasting

Challenge #7: Lacking a Qualified Forecasting Team

Creating and maintaining a cash flow forecast is a major task for every company. Not having a dedicated team to handle it makes report generation impossible. And if even one is created, there wouldn’t be anyone to update it and let you know the latest data analysis results. Like a snowball, a series of the above mentioned challenges will surely accumulate.

The Workaround

There are plenty of choices a company can go for to hire a bookkeeper and accountant to handle forecasts. An in-house accountant is the traditional choice, but you can also choose to work with remote team members and freelancers. With these choices, building a dedicated team to handle forecasting becomes easier.

Your finance team will ensure your business has a defined forecasting process, an efficient way to acquire and manage data, and the best software to make forecasting cash flow easier and more accurate.

Cash Flow Forecast Solutions by Unloop

With cash forecasting being so important to any business’s success, startups must understand common challenges and how to avoid them. We hope that these common challenges startups face when forecasting cash flow and some workarounds have helped you. At Unloop, we have seen firsthand how important cash flow forecasts are to businesses. Proper forecasts can help businesses stretch their budgets and stay ahead of payments. With that in mind, take advantage of our forecasting services to experience the power of having a reliable and secure forecasting platform at your fingertips. Call us today!

7 Cash Flow Forecasting Challenges and Workarounds Startups Should Know
Watch Now

Cash flow forecasting can be tricky—it requires skills, attention to detail, and dedication. But when done right, cash flow forecasting can offer tremendous value and invaluable insight into the future of your startup business or project.

Many organizations face significant challenges while attempting this exercise, but some workarounds can help you achieve success in predicting your financial future with confidence.

In this blog post, we'll explore some common cash flow forecasting challenges and solutions for improving your forecasts' accuracy. With these tips, you'll have valuable information to make better decisions about where to allocate resources and set appropriate expectations for revenue and expenses.

Challenge #1: Not Knowing the Importance of Cash Flow Forecasts

As an owner of a startup business, at the beginning, your cash flow may be slow and manageable using manual bookkeeping and accounting. A common mistake would be sticking to this day-to-day cash flow monitoring system and not forecasting. Seeing only daily cash flow and having no visibility about your company's future income and expenses is like operating a business in the dark.

The Workaround

Understand that cash flow management is essential for all businesses, even startups. Know that with it, you can see how much income and expenses you’ll have daily, weekly, monthly, quarterly, or annually. As a result, you can use the data as the basis of your financial game plans. You can use it to decide the following:

  • When to invest
  • How much to save
  • What to do with your profits
  • How to increase your sales
  • How to minimize spending

Challenge #2: Limited Historical Data

Having limited historical data is common to startups either because owners have failed to store financial data in the past or because the business hasn’t been running for a significant period of time yet. Historical data is the most basic information needed when creating a cash flow forecast, and the absence of these numbers makes the forecast result less reliable. 

The Workaround

Despite the absence of historical data, there are still ways to get a reliable cash flow forecast. To begin, whether you lack past numbers because of a personal choice or not, it is time to invest in software and applications to help you track your business finances.

These apps and software can also help you conveniently create simulations, or before and after trials. Use the following data for your forecasts:

  • Current income and expenses
  • Any historical data available
  • Competitor data
  • Customer surveys
  • Economic, political, social, and environmental factors
  • Insights from experts

Challenge #3: Inaccurate Data Sources

The biggest enemy of a cash flow forecast is inaccurate data, which can happen when tracking income and expenses manually. Although Excel sheets are readily available (and free), they may lose your business money in the long run as human errors bring costly damages to your finances.

Inaccurate data leads to making bigger loans, being overconfident in forecasting income, making fewer investments, and saving less—all detrimental to your business growth.

The Workaround

The most efficient workaround to the data inaccuracy problem is bidding goodbye to your company's manual systems. Accept that part of growth is optimizing your bookkeeping and accounting technology so that you can track your finances better. 

Accounting software is highly automated, and you can also integrate various apps. As a result, you can minimize or even eradicate manual inputs, which can cause inaccurate data.

cash forecasting process

Challenge #4: The Absence of Interdepartmental Collaboration

If there are a couple of teams in your company, you’ll need input for their income and expenses. This task becomes a roadblock when there is no collaboration between different departments. When different teams do not practise open communication, you might get incomplete or erroneous financial data from them. Another challenge is not having an established system for workflow and data submission processes in the company. 

The Workaround

Excellent accountants and bookkeepers need to be well-versed in their tasks or have certifications and training to perform them correctly. On top of that, they should have communication skills and be team players. This is to make sure that they can connect to the various departments in your company to get the needed data. They also need to be forward thinkers to suggest and enact the best systems to make this data acquisition as smooth as possible for everyone.

Challenge #5: Unpredictable and Changing Variables

Expect that a cash flow forecast doesn’t mean you’ll get 100% accuracy, as the following variables are prone to changes:

  • Interest rates
  • Foreign exchange rates
  • Commodity prices
  • Sales taxes
  • Prices of raw materials
  • Customer payment behaviours

As a result, the final accounts receivable and payable won’t be exactly as what you forecasted.

The Workaround

The best workaround to ensure that you get the forecast closest to the truth is keeping numbers and data updated. Be in the know with the latest interest and foreign exchange rates. Know if there are changes in sales taxes and other tax dues you need to pay. If there are updates on commodity and raw material prices, they should also be reflected in your forecast. And do not forget about your customers too. Check sales trends to know when your peak sales occur.

Challenge #6: Skipping Forecasts and Actual Data Analysis

Successfully launching a cash flow forecast is not the end of the cash forecasting process, but it becomes a problem if you make it so. As we’ve learned, some variables are subject to change, so if one variable adjusts, the income and expenses will as well. If you keep on using the old data without any adjustments, your business finances will suffer these consequences:

  • It will disable you from adjusting your game plans accurately.
  • You won't be able to align your investments and spending, to your actual earnings and expenses. 
  • You won’t identify potential financial risks, so you’ll be unable to proactively stop them from happening.

The Workaround

The best way to do a cash flow projection and actual cash flow analysis is through the help of software. An accounting software already has the forecast and the latest data of your business stored. They also have templates to show a comparison of current cash flow and forecast data. With software, generating reports is easier, and you can regularly analyze data to see if you need to optimize your cash flow plans and strategies.

cash forecasting

Challenge #7: Lacking a Qualified Forecasting Team

Creating and maintaining a cash flow forecast is a major task for every company. Not having a dedicated team to handle it makes report generation impossible. And if even one is created, there wouldn’t be anyone to update it and let you know the latest data analysis results. Like a snowball, a series of the above mentioned challenges will surely accumulate.

The Workaround

There are plenty of choices a company can go for to hire a bookkeeper and accountant to handle forecasts. An in-house accountant is the traditional choice, but you can also choose to work with remote team members and freelancers. With these choices, building a dedicated team to handle forecasting becomes easier.

Your finance team will ensure your business has a defined forecasting process, an efficient way to acquire and manage data, and the best software to make forecasting cash flow easier and more accurate.

Cash Flow Forecast Solutions by Unloop

With cash forecasting being so important to any business’s success, startups must understand common challenges and how to avoid them. We hope that these common challenges startups face when forecasting cash flow and some workarounds have helped you. At Unloop, we have seen firsthand how important cash flow forecasts are to businesses. Proper forecasts can help businesses stretch their budgets and stay ahead of payments. With that in mind, take advantage of our forecasting services to experience the power of having a reliable and secure forecasting platform at your fingertips. Call us today!

Read more

Monitoring your business's accounts payable is crucial to determine the state of its financial health. Accurate forecasting allows you to gain control of your cash flow. In addition, knowing when your payments are due builds a good relationship with your suppliers and opens up strategies for money-saving plans for your payables.

Forecasting accounts payable may not be your priority when handling business accounting, but it can benefit your business. In this blog post, we'll talk more about forecasting accounts payable so you know how to do it for your business.

Accounts Payable and Forecasting

Accounts payable refers to short-term liabilities a business needs to pay off within a year or a shorter time frame. Understanding and seeing your business expenses fully allows you to do the groundwork for building a suitable budget for your business.

Forecasting will help you prepare to meet your payments by considering different scenarios. For example, if the price of raw materials increase or third-party fees change their rates, you can ensure your business can still fulfill its obligations and make wise decisions regarding your business finances.

Ways To Do Accounts Payable Forecasting

You can monitor the money going out of your business in several ways. Here are some things you can do to help you build an accurate accounts payable forecast.

Understand Spending Patterns

The payment patterns for your business are an important piece of information in creating an accurate forecast. Your expenses on payroll and inventory are relatively consistent month to month and easier to track. But always look at past spending data to see accurate patterns.

For example, look at the months you spend more on inventory. Some of your items may be in demand in certain months, so be mindful of that so you can plan your budget accordingly. You can also accumulate your past invoices to have a picture of where your money is going.

Noticing the patterns will also help you see where you can save, which can be good for your cash flow.

Be Up to Date With Industry Trends

Understanding trends in the marketplace, like technological advances and consumer behaviour, will help determine if these changes can affect your business payables. Changes in the industry are quick, and if you're not keen enough to see them, you may fall behind, which can make your forecast less accurate.

You can track some marketing trends by:

  • Being updated on the news about changes and developments related to your field.
  • Using data analytics to see possible trend changes. An analytics tool is easier and can predict trends before they even happen, so you’ll always be a step ahead.

Use and Analyze Historical Data

Using historical data is advantageous for forecasting because many methods maximize historical data. The most common way of using past data is through extrapolation. However, there's room for error with this method because it doesn't consider the changes that happened in your business.

Statistical modelling is a more accurate method for creating accounts payable forecasts. This method helps business owners identify behavior in ways businesses do their payments and create a forecast based on its current conditions. This forecasting method is the most accurate but requires a huge investment in time and resources.

If you're new to forecasting, it is best to use both methods for the best results. Then, play with the strength of each method to make better business decisions.

Track Invoices and Payment Deadlines

You need all the data to create an accurate forecast. That's why it is crucial that you keep track of your invoices and dues. Here are some ways to do it effectively:

  • Input all your outstanding invoices and their dues into a spreadsheet. Doing this will help you see which of your payments are nearing their deadlines so you can plan accordingly.
  • Set up timely calendar reminders using accounting software. Better yet, automate your entire accounts payable process to ensure you don't miss any of your upcoming liabilities.

Invest in Accounting Software

Accounting software is a valuable tool for businesses. Think of it as a virtual assistant that handles certain tasks that you can't because your hands are full. For example, you can start with a Microsoft Excel spreadsheet to organize your cash flow in a certain accounting period. Although this may keep things organized, you still have to input data and create financial statements manually when needed.

If you want something more convenient, there are several accounting software you can choose from. These software options can perform basic accounting tasks and even more complex ones. Furthermore, they can produce financial statements like income statements, balance sheets, and other reports in just a few clicks.

Some even have a feature to create financial models for your business based on the data you input into the system. The right accounting software will help create your business's accurate accounts payable forecast.

How To Calculate Expected Accounts Payable

Knowing how much you need to pay at the end of each period will help you plan your budget. Fortunately, there is a simple calculation method that allows you to get an overview of your expected accounts payables.

Here is how to do it:

  • Determine the average number of days you need to pay your invoices.
  • Determine the total amount you need to pay suppliers.

Once you have this data, you can simply follow the formula:

(Current liabilities)/(Total operating cash/Number of days) = Expected accounts payable

So, for example, if your business has an outstanding liability of $10,000 and your total 

operating cost is $25,000, and you have 25 days to complete your payments. You can calculate your expected payables by:

(10,000)/(25,000/25) = $10,000

You can expect your business needs to pay $10,000 by the end of 25 days.

Benefits of Doing Accounts Payable Forecasts

Forecasting is an optional part of accounting, and some business owners find it unnecessary. However, forecasting is a good move for your business if you want a clearer view of your financial ratios. Here are some benefits of doing it.

Helps Maximize Working Capital

The results of the accounts payable forecast are valuable for improving your cash flow forecasting. This will help get key insights into how much of your working capital is available for business growth and investment. In addition, a clear picture of your forecast will help you maximize your working capital more confidently and risk-free.

Establishes Good Vendor Relationships

Nothing makes your suppliers happier than you paying them on time. Forecasting accounts payable will help you see your deliverables ahead of time so you won't incur late payments. In addition, timely payments build trust and good relationships with your suppliers.

Moreover, forecasting helps you identify if you will run into problems with your payments. This way, you can give your suppliers a warning if there's no choice but to delay your payments.

Lessens Payment Disruptions

Knowing your expected liabilities will help prevent disruptions in your payments. Understanding how much working capital comes in and out of your business in a specific period will help you eliminate risks and other potential disruptions.

Forecasting Accounts Payable With Unloop

Now that you have an overview of how forecasting accounts payable can benefit your business, you should start planning how you can forecast. Forecasting is not an easy task, so it is better to have a professional handle this for you.

Unloop offers AP forecasting for small ecommerce businesses. Our team of experts will ensure:

  • Your business will always pay suppliers on time.
  • Automation for all your payable workflows using accounting software, so you save time from inputting data manually.
  • The lowest possible rate for foreign payables, as we can handle foreign currency as well.

Unloop can handle all your accounts payable needs and even other accounting needs. Our team is ready to work with you on your bookkeeping, income tax, payroll, financial forecasts, and accounting. Book a call and work with us today!

Stop Going Over Budget: Forecasting Accounts Payable for Businesses
Watch Now

Monitoring your business's accounts payable is crucial to determine the state of its financial health. Accurate forecasting allows you to gain control of your cash flow. In addition, knowing when your payments are due builds a good relationship with your suppliers and opens up strategies for money-saving plans for your payables.

Forecasting accounts payable may not be your priority when handling business accounting, but it can benefit your business. In this blog post, we'll talk more about forecasting accounts payable so you know how to do it for your business.

Accounts Payable and Forecasting

Accounts payable refers to short-term liabilities a business needs to pay off within a year or a shorter time frame. Understanding and seeing your business expenses fully allows you to do the groundwork for building a suitable budget for your business.

Forecasting will help you prepare to meet your payments by considering different scenarios. For example, if the price of raw materials increase or third-party fees change their rates, you can ensure your business can still fulfill its obligations and make wise decisions regarding your business finances.

Ways To Do Accounts Payable Forecasting

You can monitor the money going out of your business in several ways. Here are some things you can do to help you build an accurate accounts payable forecast.

Understand Spending Patterns

The payment patterns for your business are an important piece of information in creating an accurate forecast. Your expenses on payroll and inventory are relatively consistent month to month and easier to track. But always look at past spending data to see accurate patterns.

For example, look at the months you spend more on inventory. Some of your items may be in demand in certain months, so be mindful of that so you can plan your budget accordingly. You can also accumulate your past invoices to have a picture of where your money is going.

Noticing the patterns will also help you see where you can save, which can be good for your cash flow.

Be Up to Date With Industry Trends

Understanding trends in the marketplace, like technological advances and consumer behaviour, will help determine if these changes can affect your business payables. Changes in the industry are quick, and if you're not keen enough to see them, you may fall behind, which can make your forecast less accurate.

You can track some marketing trends by:

  • Being updated on the news about changes and developments related to your field.
  • Using data analytics to see possible trend changes. An analytics tool is easier and can predict trends before they even happen, so you’ll always be a step ahead.

Use and Analyze Historical Data

Using historical data is advantageous for forecasting because many methods maximize historical data. The most common way of using past data is through extrapolation. However, there's room for error with this method because it doesn't consider the changes that happened in your business.

Statistical modelling is a more accurate method for creating accounts payable forecasts. This method helps business owners identify behavior in ways businesses do their payments and create a forecast based on its current conditions. This forecasting method is the most accurate but requires a huge investment in time and resources.

If you're new to forecasting, it is best to use both methods for the best results. Then, play with the strength of each method to make better business decisions.

Track Invoices and Payment Deadlines

You need all the data to create an accurate forecast. That's why it is crucial that you keep track of your invoices and dues. Here are some ways to do it effectively:

  • Input all your outstanding invoices and their dues into a spreadsheet. Doing this will help you see which of your payments are nearing their deadlines so you can plan accordingly.
  • Set up timely calendar reminders using accounting software. Better yet, automate your entire accounts payable process to ensure you don't miss any of your upcoming liabilities.

Invest in Accounting Software

Accounting software is a valuable tool for businesses. Think of it as a virtual assistant that handles certain tasks that you can't because your hands are full. For example, you can start with a Microsoft Excel spreadsheet to organize your cash flow in a certain accounting period. Although this may keep things organized, you still have to input data and create financial statements manually when needed.

If you want something more convenient, there are several accounting software you can choose from. These software options can perform basic accounting tasks and even more complex ones. Furthermore, they can produce financial statements like income statements, balance sheets, and other reports in just a few clicks.

Some even have a feature to create financial models for your business based on the data you input into the system. The right accounting software will help create your business's accurate accounts payable forecast.

How To Calculate Expected Accounts Payable

Knowing how much you need to pay at the end of each period will help you plan your budget. Fortunately, there is a simple calculation method that allows you to get an overview of your expected accounts payables.

Here is how to do it:

  • Determine the average number of days you need to pay your invoices.
  • Determine the total amount you need to pay suppliers.

Once you have this data, you can simply follow the formula:

(Current liabilities)/(Total operating cash/Number of days) = Expected accounts payable

So, for example, if your business has an outstanding liability of $10,000 and your total 

operating cost is $25,000, and you have 25 days to complete your payments. You can calculate your expected payables by:

(10,000)/(25,000/25) = $10,000

You can expect your business needs to pay $10,000 by the end of 25 days.

Benefits of Doing Accounts Payable Forecasts

Forecasting is an optional part of accounting, and some business owners find it unnecessary. However, forecasting is a good move for your business if you want a clearer view of your financial ratios. Here are some benefits of doing it.

Helps Maximize Working Capital

The results of the accounts payable forecast are valuable for improving your cash flow forecasting. This will help get key insights into how much of your working capital is available for business growth and investment. In addition, a clear picture of your forecast will help you maximize your working capital more confidently and risk-free.

Establishes Good Vendor Relationships

Nothing makes your suppliers happier than you paying them on time. Forecasting accounts payable will help you see your deliverables ahead of time so you won't incur late payments. In addition, timely payments build trust and good relationships with your suppliers.

Moreover, forecasting helps you identify if you will run into problems with your payments. This way, you can give your suppliers a warning if there's no choice but to delay your payments.

Lessens Payment Disruptions

Knowing your expected liabilities will help prevent disruptions in your payments. Understanding how much working capital comes in and out of your business in a specific period will help you eliminate risks and other potential disruptions.

Forecasting Accounts Payable With Unloop

Now that you have an overview of how forecasting accounts payable can benefit your business, you should start planning how you can forecast. Forecasting is not an easy task, so it is better to have a professional handle this for you.

Unloop offers AP forecasting for small ecommerce businesses. Our team of experts will ensure:

  • Your business will always pay suppliers on time.
  • Automation for all your payable workflows using accounting software, so you save time from inputting data manually.
  • The lowest possible rate for foreign payables, as we can handle foreign currency as well.

Unloop can handle all your accounts payable needs and even other accounting needs. Our team is ready to work with you on your bookkeeping, income tax, payroll, financial forecasts, and accounting. Book a call and work with us today!

Read more

Debit or credit? The question can confuse most beginner business owners since, to the average person, it can mean the same thing in certain situations. However, debit and credit are far more different than they are similar. This article will help you settle the debits vs. credits question once and for all.

Financial Give and Take: The Credit and Debit Difference

To understand debit and credit, we have to go back to the basics of business finances: money coming in, and money coming out. It is the inevitable truth of business—you can't earn without spending, and you shouldn’t spend money without expecting returns.

This brings us to our main point: the credit and debit difference. It's an ongoing cycle, give and take. Debit and credit just give us a sharper idea of which goes where.

What Is the Difference Between Credit and Debit?

At first glance, the difference between debit and credit seems pretty straightforward. Debit, since it brings in money for the business, is the one that gives, while credit, which connotes loans and payments, takes.

But if you keep track of your financial transactions and look closely enough, you'll realize that debit and credit are not just fancy accounting jargon, and accounting for each can get pretty complicated. So what's the main difference between the two accounts?

Let's go back to give and take. Businesses live off customers' payments in exchange for goods and services and make investments to maintain or even improve their operations. Customers give you money, and you take money from your budget to pay for necessary expenses.

When a customer pays for services, their money becomes the company's money to do with as they see fit. Such payments can be considered “assets”—resources under a company's control. Assets can be anything from hard cash to vehicles or properties.

But when it's the company's turn to make payments to other entities—whether in the form of investments, expenses, or refunds—they relinquish control of the money in their possession, turning them into a “liability”: a resource or amount a business owes to another individual or business.

The Main Difference Between Debit and Credit

The main difference between debit and credit lies in assets and liabilities. A debit increases the value of assets while credit accounting increases the value of liabilities. So while the two both give in some areas, they also take in others, depending on the account.

Here are some examples of assets:

  • Cash
  • Property
  • Items/products
  • Automobiles
  • Earned income (accounts receivable)

Here are some examples of expense accounts or liability accounts:

  • Loans
  • Expenses (bills, purchases, operational expenses)
  • Promos
  • Cash advances
  • Equity accounts
  • Returns/refunds
  • Accounts payables

To better understand debit and credit, here are some examples of how they function in different accounts.

Bank or Cash Account

The balances in a bank and cash account are the simplest way to explain debit and credit. When someone deposits an amount into your bank account, you consider that a debit transaction because cash is an asset, and a deposit increases the amount or value of that asset. Essentially, bank debits are transactions wherein the asset account increases.

But when you pay for something, like bills or expenses, then those are considered credit transactions because you owe certain amounts to other individuals or businesses, taking away your control of the asset. Monthly payments on your prepaid debit cards or credit card bill increase your amount owed, making it a credit.

Revenue Accounts

Revenue includes expenses in the equation, making it a liability. So when a client pays a business a certain amount, that amount is entered into the books as a credit, even if it adds to your business's total income after expenses.

Debits in revenue are made when a customer returns an item or asks for a refund, increasing what your business owes to other entities.

Equity Accounts

Equity is what remains from the revenue after expenses. It is your profit to be divided among shareholders as their portion. Because it takes money from a business, equity accounts are considered liability accounts on the balance sheet. So if someone invests in your business, even if it helps your company financially, that will still be considered credit because the equity accounts increase.

If you're having trouble determining your profit, remember the accounting equation: liabilities minus expenses equals assets. Usually, the profit's dividends will depend on shareholders' equity.

Accounts Receivable

Accounts receivable are simply your business's earned but unpaid sales. Accounts receivable is considered an asset account because when customers pay for the services, the payments turn into cash for your company. Naturally, logging sales into the accounts receivable is considered a debit entry.

Accounts Payable

Accounts payable keeps track of how much the business owes, making it a liability. So money sent into this account guarantees it will be spent elsewhere, like suppliers or the company's bills, which is considered a credit transaction. This is usually how a credit card company does business.

Debits and credits filed separately.

The Importance of Tracking Debits and Credits

You probably think that debits and credits complicate the whole accounting process, which is true to some extent. It is complicated, but not without reason. Debits and credits give context to your business's financial health.

For example, in the two account systems, single-entry and double-entry accounting, borrowing money or a bank loan can be interpreted in different ways. In single-entry accounting, the loan is logged as income since it increases your company's funds. But in double-entry accounting, where transactions are labeled as a debit or credit entry, a loan is considered an expense, or a credit that the business will have to pay in the future.

See, if you only logged the loan as additional cash (which it is, but only temporarily), you risk forgetting it in the future and hurting your company's financial health. But if you log it as an expense now, you can better prepare for it in the future.

One of the best decisions you can make in favor of your business's financial health is deciding on an accounting method to use to track your finances.

Single-Entry Bookkeeping

If you run your business account on a single-entry system, you won’t have much of an issue since it's simpler: separate income and expense accounts; nothing more, nothing less. You can even manage your books with a single journal entry. You log incoming and outgoing money and mark the difference, which will be your profit.

However simple as it may be, single-entry bookkeeping or accounting poses problems for a businessman accounting for their finances using this process. First, single-entry accounting lacks context. Since you only account for income and expenses, you have only a vague idea of your business finances. Second, because of the lack of context, single-entry accounting cannot produce balance sheets, which leads to problems regarding taxes.

So what's a better choice?

Double-Entry Bookkeeping

Double-entry bookkeeping or accounting fixes the common problems with single-entry bookkeeping. A better financial context in a double-entry system allows you to make more accurate financial predictions. Consequently, you'll have fewer problems with the tax authorities since you'll be able to provide much needed details with a balance sheet.

Double-entry accounting takes assets, liabilities, and equity into consideration when assessing a company's financial situation. It takes asset and expense accounts and marks the debits and credits properly to make an accurate financial assessment.

With double-entry bookkeeping, you won't have to worry about making it to the end of your financial period since your accounting method keeps you up-to-date. Also, accounting software is usually optimized to record debits and credits properly, so it becomes less of a headache to do.

An accountants’ things after differentiating debit and credit.

Leave Your Bookkeeping to Unloop

Learning the difference between debit and credit is essential to the survival of your business finances. The average person will have trouble seeing which—they may even label the same transaction as both debit or credit without noticing.If doing your own accounting isn’t optimal, try a bookkeeping service. A good bookkeeping service can keep your books flawless and your business in great financial shape. Unloop can do this for you. Give us a call to find out how.

Give and Take: Debits vs. Credits
Watch Now

Debit or credit? The question can confuse most beginner business owners since, to the average person, it can mean the same thing in certain situations. However, debit and credit are far more different than they are similar. This article will help you settle the debits vs. credits question once and for all.

Financial Give and Take: The Credit and Debit Difference

To understand debit and credit, we have to go back to the basics of business finances: money coming in, and money coming out. It is the inevitable truth of business—you can't earn without spending, and you shouldn’t spend money without expecting returns.

This brings us to our main point: the credit and debit difference. It's an ongoing cycle, give and take. Debit and credit just give us a sharper idea of which goes where.

What Is the Difference Between Credit and Debit?

At first glance, the difference between debit and credit seems pretty straightforward. Debit, since it brings in money for the business, is the one that gives, while credit, which connotes loans and payments, takes.

But if you keep track of your financial transactions and look closely enough, you'll realize that debit and credit are not just fancy accounting jargon, and accounting for each can get pretty complicated. So what's the main difference between the two accounts?

Let's go back to give and take. Businesses live off customers' payments in exchange for goods and services and make investments to maintain or even improve their operations. Customers give you money, and you take money from your budget to pay for necessary expenses.

When a customer pays for services, their money becomes the company's money to do with as they see fit. Such payments can be considered “assets”—resources under a company's control. Assets can be anything from hard cash to vehicles or properties.

But when it's the company's turn to make payments to other entities—whether in the form of investments, expenses, or refunds—they relinquish control of the money in their possession, turning them into a “liability”: a resource or amount a business owes to another individual or business.

The Main Difference Between Debit and Credit

The main difference between debit and credit lies in assets and liabilities. A debit increases the value of assets while credit accounting increases the value of liabilities. So while the two both give in some areas, they also take in others, depending on the account.

Here are some examples of assets:

  • Cash
  • Property
  • Items/products
  • Automobiles
  • Earned income (accounts receivable)

Here are some examples of expense accounts or liability accounts:

  • Loans
  • Expenses (bills, purchases, operational expenses)
  • Promos
  • Cash advances
  • Equity accounts
  • Returns/refunds
  • Accounts payables

To better understand debit and credit, here are some examples of how they function in different accounts.

Bank or Cash Account

The balances in a bank and cash account are the simplest way to explain debit and credit. When someone deposits an amount into your bank account, you consider that a debit transaction because cash is an asset, and a deposit increases the amount or value of that asset. Essentially, bank debits are transactions wherein the asset account increases.

But when you pay for something, like bills or expenses, then those are considered credit transactions because you owe certain amounts to other individuals or businesses, taking away your control of the asset. Monthly payments on your prepaid debit cards or credit card bill increase your amount owed, making it a credit.

Revenue Accounts

Revenue includes expenses in the equation, making it a liability. So when a client pays a business a certain amount, that amount is entered into the books as a credit, even if it adds to your business's total income after expenses.

Debits in revenue are made when a customer returns an item or asks for a refund, increasing what your business owes to other entities.

Equity Accounts

Equity is what remains from the revenue after expenses. It is your profit to be divided among shareholders as their portion. Because it takes money from a business, equity accounts are considered liability accounts on the balance sheet. So if someone invests in your business, even if it helps your company financially, that will still be considered credit because the equity accounts increase.

If you're having trouble determining your profit, remember the accounting equation: liabilities minus expenses equals assets. Usually, the profit's dividends will depend on shareholders' equity.

Accounts Receivable

Accounts receivable are simply your business's earned but unpaid sales. Accounts receivable is considered an asset account because when customers pay for the services, the payments turn into cash for your company. Naturally, logging sales into the accounts receivable is considered a debit entry.

Accounts Payable

Accounts payable keeps track of how much the business owes, making it a liability. So money sent into this account guarantees it will be spent elsewhere, like suppliers or the company's bills, which is considered a credit transaction. This is usually how a credit card company does business.

Debits and credits filed separately.

The Importance of Tracking Debits and Credits

You probably think that debits and credits complicate the whole accounting process, which is true to some extent. It is complicated, but not without reason. Debits and credits give context to your business's financial health.

For example, in the two account systems, single-entry and double-entry accounting, borrowing money or a bank loan can be interpreted in different ways. In single-entry accounting, the loan is logged as income since it increases your company's funds. But in double-entry accounting, where transactions are labeled as a debit or credit entry, a loan is considered an expense, or a credit that the business will have to pay in the future.

See, if you only logged the loan as additional cash (which it is, but only temporarily), you risk forgetting it in the future and hurting your company's financial health. But if you log it as an expense now, you can better prepare for it in the future.

One of the best decisions you can make in favor of your business's financial health is deciding on an accounting method to use to track your finances.

Single-Entry Bookkeeping

If you run your business account on a single-entry system, you won’t have much of an issue since it's simpler: separate income and expense accounts; nothing more, nothing less. You can even manage your books with a single journal entry. You log incoming and outgoing money and mark the difference, which will be your profit.

However simple as it may be, single-entry bookkeeping or accounting poses problems for a businessman accounting for their finances using this process. First, single-entry accounting lacks context. Since you only account for income and expenses, you have only a vague idea of your business finances. Second, because of the lack of context, single-entry accounting cannot produce balance sheets, which leads to problems regarding taxes.

So what's a better choice?

Double-Entry Bookkeeping

Double-entry bookkeeping or accounting fixes the common problems with single-entry bookkeeping. A better financial context in a double-entry system allows you to make more accurate financial predictions. Consequently, you'll have fewer problems with the tax authorities since you'll be able to provide much needed details with a balance sheet.

Double-entry accounting takes assets, liabilities, and equity into consideration when assessing a company's financial situation. It takes asset and expense accounts and marks the debits and credits properly to make an accurate financial assessment.

With double-entry bookkeeping, you won't have to worry about making it to the end of your financial period since your accounting method keeps you up-to-date. Also, accounting software is usually optimized to record debits and credits properly, so it becomes less of a headache to do.

An accountants’ things after differentiating debit and credit.

Leave Your Bookkeeping to Unloop

Learning the difference between debit and credit is essential to the survival of your business finances. The average person will have trouble seeing which—they may even label the same transaction as both debit or credit without noticing.If doing your own accounting isn’t optimal, try a bookkeeping service. A good bookkeeping service can keep your books flawless and your business in great financial shape. Unloop can do this for you. Give us a call to find out how.

Read more

Finances keep your business running. That's why managing it can make or break a business. But as new business owners, it can be confusing to handle money, and you might be spending them on things that could be devastating for your business.

For small businesses in particular, every penny counts, and managing finances is not always simple. In this article, we'll outline a few of the most typical errors that small business owners make that might hurt their company.

Making Unnecessary Large Purchases

It is alright to feel excited about opening your business. But often, this excitement turns into unnecessary spending. Buying office space or furniture to make the area cozy can be tempting. There are also pieces of equipment and technology to splurge on. But before buying these things, make sure you need them.

When you have a small business, you can start with the basics. As your business grows and you earn more, you can continuously upgrade. Moreover, don't get business loans you can't pay back. The money you get will allow you to buy things, but if you don't have enough income to pay it back, your business won't generate profit or have the finances to keep operations running.

No Emergency Funds or Savings

All businesses should have prepared emergency funds. There's always a possibility that an unwanted event will happen, and most of the time, it will cost you money. You can't always rely on the daily profits since you always have expenses to settle.

With emergency funds, preventing damages to your business will be easier. For example, when a piece of your equipment malfunctions or breaks, you’ll need a large sum of money to repair it. In worse scenarios, you’ll need to replace it. There will also be months when business is slow, and emergency funds can keep your operations running.

Overlooking Unpaid Invoices

Every payment is essential for a small business. But many businesses need to pay more attention to their unpaid invoices. According to recent studies, almost 65% of businesses have unpaid invoices from their clients. That is a lot of money you lose if you're not settling with your clients.

Make it a habit to track your invoices. Send regular notifications to your clients regarding their dues. You can add penalties to overdue payments so clients are forced to pay your business more diligently.

Failing To Plan for Tax Obligations

Running a business also means you have tax obligations to fulfill. Many business owners focus on marketing strategies, sales, and other aspects that they often forget to consider taxes. Business taxes can be heavy when you pay them all at the end of the fiscal year.

You can plan them quarterly, so your business's cash flow will not be interrupted. Planning for your taxes will also help you distribute your business finances equally for your required expenses.

Poor Cash Flow Management

Many business owners fail to realize the importance of a positive cash flow. The main focus of cash flow is the money that enters and exits your company. Of course, it's good for your business's finances if cash continues to go into your business. The profit and loss statement can help you identify any cash flow problems early on.

However, there are also business-related expenses you should know of. There's inventory you need to track so you can keep selling and meeting your customers' needs. There are bills to pay, like rent, electricity, and other fees for business operations. Managing small business finances properly can help you balance your income and expenses.

Small business owners often think they have sound financial management if their expenses are paid. Always check your balance sheet to see if the money going out and in is balanced and will still make you profitable.

business financial report

Failing To Recognize Cash From Profit

One of the most common mistakes of business owners is confusing cash and profit. For example, your business generates $1000 per week, and your expenses add up to $450. The cash you have on hand is $1000, and the profit you generate is $550.

In a month, you can expect to earn $4000 with $2200 to pay in expenses. If the business is stable and income is consistent, your expenses will be covered. But remember, business can be slow and unpredictable things can happen. The $4000 may not come in time, and you may not have enough to cover your expenses, leading to your business's downfall.

Using Business Funds for Personal Finances

When business is doing good, and you are earning a lot, buying the things you want and using business profit for personal expenses can be tempting. But it is most practical to keep your personal and professional accounts separate which a lot of small business owners find it challenging to do.

While it makes sense to use your profit for your personal needs since you own the business, remember that a part of your profits should be invested for future growth. Moreover, business profits are used to assess your business's financial health.

No Clear Budget Planning

Creating a budget is crucial for every business. When you have a clearly drawn budget for your business, you’ll have an accurate expectation of your future expenses. From business loans to buying inventory, paying your tax obligations, and employee payroll, you can ensure to fulfill all your business expenses.

It's inevitable that you can make mistakes in managing business finances. However, by having a financial plan, you may anticipate and prevent them. Furthermore, creating a budget plan allows you to see different situations that can happen to your business.

Accounting Software for Financial Management Needs

Don't underestimate small business financial management. When it comes to business, dealing with money is difficult. Fortunately, technology has caught up, and accounting software makes basic financial management for small businesses easy.

Investing in accounting software will make business financing easier, especially for owners new to the business. Here are some reasons why using accounting software for your business is beneficial.

  • The software has an automatic expense tracking feature so businesses can stay on top of their spending and analyze their patterns to maximize their cash flow.
  • Accounting software can store business transactions to help generate reports for your business.
  • It can help you with tax compliance. Reliable accounting solutions will help you adhere to tax regulations. The software can accurately calculate your business's tax obligations and notify you when payments are due.
  • Accounting systems create invoices and send them to your clients. They will help you keep track of the payments due to your business.
  • Accounting software options can be integrated into payment channels. This feature will give your clients a secure payment channel and make it easier for your business to store records of transactions.
accountant for business finance management

Get Professional Financial Management for Small Businesses at Unloop

Business finances go hand in hand with accounting, and it's not every business owner's cup of tea. Unloop offers accounting services for small businesses that need help with their financial management. We offer services for forecasting, payroll, bookkeeping, accounts payable, and taxes.
Don't let messy finances hinder your path to success. Get professional help today! Book a call with us and talk to an expert for free.

8 Small Business Financial Management Mistakes That Can Kill Your Business
Watch Now

Finances keep your business running. That's why managing it can make or break a business. But as new business owners, it can be confusing to handle money, and you might be spending them on things that could be devastating for your business.

For small businesses in particular, every penny counts, and managing finances is not always simple. In this article, we'll outline a few of the most typical errors that small business owners make that might hurt their company.

Making Unnecessary Large Purchases

It is alright to feel excited about opening your business. But often, this excitement turns into unnecessary spending. Buying office space or furniture to make the area cozy can be tempting. There are also pieces of equipment and technology to splurge on. But before buying these things, make sure you need them.

When you have a small business, you can start with the basics. As your business grows and you earn more, you can continuously upgrade. Moreover, don't get business loans you can't pay back. The money you get will allow you to buy things, but if you don't have enough income to pay it back, your business won't generate profit or have the finances to keep operations running.

No Emergency Funds or Savings

All businesses should have prepared emergency funds. There's always a possibility that an unwanted event will happen, and most of the time, it will cost you money. You can't always rely on the daily profits since you always have expenses to settle.

With emergency funds, preventing damages to your business will be easier. For example, when a piece of your equipment malfunctions or breaks, you’ll need a large sum of money to repair it. In worse scenarios, you’ll need to replace it. There will also be months when business is slow, and emergency funds can keep your operations running.

Overlooking Unpaid Invoices

Every payment is essential for a small business. But many businesses need to pay more attention to their unpaid invoices. According to recent studies, almost 65% of businesses have unpaid invoices from their clients. That is a lot of money you lose if you're not settling with your clients.

Make it a habit to track your invoices. Send regular notifications to your clients regarding their dues. You can add penalties to overdue payments so clients are forced to pay your business more diligently.

Failing To Plan for Tax Obligations

Running a business also means you have tax obligations to fulfill. Many business owners focus on marketing strategies, sales, and other aspects that they often forget to consider taxes. Business taxes can be heavy when you pay them all at the end of the fiscal year.

You can plan them quarterly, so your business's cash flow will not be interrupted. Planning for your taxes will also help you distribute your business finances equally for your required expenses.

Poor Cash Flow Management

Many business owners fail to realize the importance of a positive cash flow. The main focus of cash flow is the money that enters and exits your company. Of course, it's good for your business's finances if cash continues to go into your business. The profit and loss statement can help you identify any cash flow problems early on.

However, there are also business-related expenses you should know of. There's inventory you need to track so you can keep selling and meeting your customers' needs. There are bills to pay, like rent, electricity, and other fees for business operations. Managing small business finances properly can help you balance your income and expenses.

Small business owners often think they have sound financial management if their expenses are paid. Always check your balance sheet to see if the money going out and in is balanced and will still make you profitable.

business financial report

Failing To Recognize Cash From Profit

One of the most common mistakes of business owners is confusing cash and profit. For example, your business generates $1000 per week, and your expenses add up to $450. The cash you have on hand is $1000, and the profit you generate is $550.

In a month, you can expect to earn $4000 with $2200 to pay in expenses. If the business is stable and income is consistent, your expenses will be covered. But remember, business can be slow and unpredictable things can happen. The $4000 may not come in time, and you may not have enough to cover your expenses, leading to your business's downfall.

Using Business Funds for Personal Finances

When business is doing good, and you are earning a lot, buying the things you want and using business profit for personal expenses can be tempting. But it is most practical to keep your personal and professional accounts separate which a lot of small business owners find it challenging to do.

While it makes sense to use your profit for your personal needs since you own the business, remember that a part of your profits should be invested for future growth. Moreover, business profits are used to assess your business's financial health.

No Clear Budget Planning

Creating a budget is crucial for every business. When you have a clearly drawn budget for your business, you’ll have an accurate expectation of your future expenses. From business loans to buying inventory, paying your tax obligations, and employee payroll, you can ensure to fulfill all your business expenses.

It's inevitable that you can make mistakes in managing business finances. However, by having a financial plan, you may anticipate and prevent them. Furthermore, creating a budget plan allows you to see different situations that can happen to your business.

Accounting Software for Financial Management Needs

Don't underestimate small business financial management. When it comes to business, dealing with money is difficult. Fortunately, technology has caught up, and accounting software makes basic financial management for small businesses easy.

Investing in accounting software will make business financing easier, especially for owners new to the business. Here are some reasons why using accounting software for your business is beneficial.

  • The software has an automatic expense tracking feature so businesses can stay on top of their spending and analyze their patterns to maximize their cash flow.
  • Accounting software can store business transactions to help generate reports for your business.
  • It can help you with tax compliance. Reliable accounting solutions will help you adhere to tax regulations. The software can accurately calculate your business's tax obligations and notify you when payments are due.
  • Accounting systems create invoices and send them to your clients. They will help you keep track of the payments due to your business.
  • Accounting software options can be integrated into payment channels. This feature will give your clients a secure payment channel and make it easier for your business to store records of transactions.
accountant for business finance management

Get Professional Financial Management for Small Businesses at Unloop

Business finances go hand in hand with accounting, and it's not every business owner's cup of tea. Unloop offers accounting services for small businesses that need help with their financial management. We offer services for forecasting, payroll, bookkeeping, accounts payable, and taxes.
Don't let messy finances hinder your path to success. Get professional help today! Book a call with us and talk to an expert for free.

Read more

Revenue and expenses are a core part of running a business. You can operate your day-to-day business activities smoothly if you keep them in balance. You can employ several strategies to control your expenses and help grow your revenue.

The path to business success is a long and tedious one, but it's not impossible. Business finances are messy, and here we have some tips to help manage them effectively. Revenue and expenses go hand in hand. Take note of these tips to help you handle them better.

4 Tips To Control Business Expenses

Expenses will play a huge role in your financial health. Expenses are costs that a business incurs to pay and run business operations. This covers everything from paying your rent and buying equipment to costs for packing and shipping.

Here are some suggestions for managing your company's expenses.

Plan and Stick to Your Budget

One of the most effective ways to have control over your budget is to start with a plan and stick to it. Creating a budget should be practical and applicable to your industry. You need to research your spending patterns and behaviors in order to develop a successful plan.

Annual budgeting is most common, but unforeseen circumstances could make you go off budget. You can control your expenses by drawing up monthly budget plans. This way, you can review and see if you are on track with your overall budget.

But more significantly, you must adhere to your spending plan. Making a budget is useless if you're not committed to sticking to it.

Document All Expenses

Make it a habit to keep all your receipts. You can record them manually or invest in software to help keep track of your expenses. Software features allow you to capture photos of receipts and store them as data so you can guarantee you don't lose your records.

Furthermore, documentation of expenses is also helpful for taxes. Certain operating expenses can be eligible for tax deductions to lessen your tax liabilities. Keeping a detailed track of your expenses helps you see the areas when you could be overspending to help you strategize your spending patterns.

Keep Track of Fixed Costs

Many business owners don't pay mind to fixed costs since they are recurring payments. Fixed costs often come from partnerships between merchants and suppliers. After a while, you will think you have a good deal with your suppliers if they don't change their prices. But it would help if you check market offers periodically.

You can start reducing expenses by finding better deals regarding your fixed costs. Get regular quotes to ensure that you are spending your finances correctly.

Invest in Technology

It's understandable that most business owners believe manual processes are cheaper. Imagine if you have a small business with a dedicated team for packing and shipping orders.

Advanced equipment may look like massive investments at first, but machines can do repetitive tasks equivalent to several people. This means you'll need fewer people to hire, which saves money in the long run.

revenue increase

6 Ways To Boost Company Revenue

Business revenue is the total income a business generates from its product sales or by providing services. Revenue is also known as gross income and referred to as the top line because it is typically seen on top of an income statement.

On the other hand, profit or net income is a company's total earnings after business expenses have been deducted. The balance between gains and losses will keep a business running. Here are some helpful tips to generate revenue.

Encourage Repeat Customers

Most companies spend time and assets to gain new customers but often neglect customers to repeat business. Building trust with your consumers will drive them to use your services again.

One effective way to persuade your customers to repeat their purchases from your business is through email. Once your clients join your email list, it allows you to communicate with them. You can solicit their opinion and keep them informed about special offers and new products. They are more inclined to repurchase your goods or services once you have earned their confidence. 

Use Coupons and Discounts

Who can resist coupons and discounts? You can use this strategy to funnel sales to your business. Of course, you have to be smart about it. You won't be making sales if all of your customers are granted discounts.

Your most devoted and active clients may receive discounts. These can be used as a thank you gift for buying your products. You can also give discounts to people who purchase a certain amount. For example, you can have promos for people who purchase more than $300.

Coupons, on the other hand, are great for new customers. For example, first-time buyers can have a 5% discount on their first purchase. Coupons such as this will entice new customers to try and purchase your products.

A Well-Designed Website Will Take You to New Heights

In the United States, over 70% of people prefer to shop online, if you don’t have a well-built website, your competitors will surely outshine your business. Easy navigation and positive user experience can encourage customers to purchase from your business.

Make sure all elements in your website are working and reflect the branding of your business. It should contain all the information your customer needs and make the purchasing process easy for them—from choosing the product or service to processing their payment. 

Outsource Your Business Marketing

Juggling and managing your time with running a business is a difficult task. You may not want to admit it, but there are other aspects of your business that you fail to give attention to. Marketing your business allows you to gain customers. More customers mean more income.

However, marketing is challenging with so many things on your plate. Instead of forcing yourself, outsource your marketing needs to a professional. These services can guarantee that your investment is worth the price and will help scale your businesses.

Expand Your Reach

You reach more customers as you venture further. Consider opening new branches in different cities if you have a physical store to attract more clients. For your ecommerce counterpart, you can widen your shipping options.

Small businesses usually start deliveries locally, but you can extend your reach nationwide or internationally. Look for shipping partners that will give the best deals to help you reach more customers.

Upsell Your Products

Even big companies use this strategy to increase their total revenue. Offering a higher-priced product can help simple transactions turn into valuable ones. The process of upselling is offering your customer a better version of their original choice. A great example is mobile phones. Companies usually offer products with bigger memory or better performance for a higher price.

Just remember, when you upsell your products, it should be something related to the original choice to find success in your upsell strategy. If they are buying a mobile phone, upsell a better version—not a laptop or other types of gadgets.

business expense receipts

Get Financial Accounting Services at Unloop

Managing your expenses and revenue also includes accounting. Accounting helps owners see their company's financial performance and prepares their business for tax season. When it comes to accounting, Unloop offers different services for small ecommerce businesses.

If you need help managing your revenue and expenses, our bookkeeping services will help you keep up with your business finances. Our services include:

  • Preparing financial statements such as income statements, balance sheets and cash flow statements.
  • Integrating your business to accounting software such as QuickBooks or Xero so you can have real-time updates of your expenses and income.
  • Filing and preparing taxes by our partner firms or your own CPAs to keep you on top of your company's obligations.
  • Using the accrual accounting method for creating financial statements and creating custom analytics for your business every 15th of the month.
  • Unlimited support from our experts through Slack.

Keeping track of how much your company earns and spends in a specific period keeps your business operations steady and running. Managing expenses and revenue is a challenge, and we hope these tips help you understand and handle your finances better.
For more accounting services, Unloop also offers payroll, taxes, forecasting and accounts payables. Book a call with us now and talk to an expert for free!

Control and Grow: Tips To Effectively Manage Business Revenue and Expenses
Watch Now

Revenue and expenses are a core part of running a business. You can operate your day-to-day business activities smoothly if you keep them in balance. You can employ several strategies to control your expenses and help grow your revenue.

The path to business success is a long and tedious one, but it's not impossible. Business finances are messy, and here we have some tips to help manage them effectively. Revenue and expenses go hand in hand. Take note of these tips to help you handle them better.

4 Tips To Control Business Expenses

Expenses will play a huge role in your financial health. Expenses are costs that a business incurs to pay and run business operations. This covers everything from paying your rent and buying equipment to costs for packing and shipping.

Here are some suggestions for managing your company's expenses.

Plan and Stick to Your Budget

One of the most effective ways to have control over your budget is to start with a plan and stick to it. Creating a budget should be practical and applicable to your industry. You need to research your spending patterns and behaviors in order to develop a successful plan.

Annual budgeting is most common, but unforeseen circumstances could make you go off budget. You can control your expenses by drawing up monthly budget plans. This way, you can review and see if you are on track with your overall budget.

But more significantly, you must adhere to your spending plan. Making a budget is useless if you're not committed to sticking to it.

Document All Expenses

Make it a habit to keep all your receipts. You can record them manually or invest in software to help keep track of your expenses. Software features allow you to capture photos of receipts and store them as data so you can guarantee you don't lose your records.

Furthermore, documentation of expenses is also helpful for taxes. Certain operating expenses can be eligible for tax deductions to lessen your tax liabilities. Keeping a detailed track of your expenses helps you see the areas when you could be overspending to help you strategize your spending patterns.

Keep Track of Fixed Costs

Many business owners don't pay mind to fixed costs since they are recurring payments. Fixed costs often come from partnerships between merchants and suppliers. After a while, you will think you have a good deal with your suppliers if they don't change their prices. But it would help if you check market offers periodically.

You can start reducing expenses by finding better deals regarding your fixed costs. Get regular quotes to ensure that you are spending your finances correctly.

Invest in Technology

It's understandable that most business owners believe manual processes are cheaper. Imagine if you have a small business with a dedicated team for packing and shipping orders.

Advanced equipment may look like massive investments at first, but machines can do repetitive tasks equivalent to several people. This means you'll need fewer people to hire, which saves money in the long run.

revenue increase

6 Ways To Boost Company Revenue

Business revenue is the total income a business generates from its product sales or by providing services. Revenue is also known as gross income and referred to as the top line because it is typically seen on top of an income statement.

On the other hand, profit or net income is a company's total earnings after business expenses have been deducted. The balance between gains and losses will keep a business running. Here are some helpful tips to generate revenue.

Encourage Repeat Customers

Most companies spend time and assets to gain new customers but often neglect customers to repeat business. Building trust with your consumers will drive them to use your services again.

One effective way to persuade your customers to repeat their purchases from your business is through email. Once your clients join your email list, it allows you to communicate with them. You can solicit their opinion and keep them informed about special offers and new products. They are more inclined to repurchase your goods or services once you have earned their confidence. 

Use Coupons and Discounts

Who can resist coupons and discounts? You can use this strategy to funnel sales to your business. Of course, you have to be smart about it. You won't be making sales if all of your customers are granted discounts.

Your most devoted and active clients may receive discounts. These can be used as a thank you gift for buying your products. You can also give discounts to people who purchase a certain amount. For example, you can have promos for people who purchase more than $300.

Coupons, on the other hand, are great for new customers. For example, first-time buyers can have a 5% discount on their first purchase. Coupons such as this will entice new customers to try and purchase your products.

A Well-Designed Website Will Take You to New Heights

In the United States, over 70% of people prefer to shop online, if you don’t have a well-built website, your competitors will surely outshine your business. Easy navigation and positive user experience can encourage customers to purchase from your business.

Make sure all elements in your website are working and reflect the branding of your business. It should contain all the information your customer needs and make the purchasing process easy for them—from choosing the product or service to processing their payment. 

Outsource Your Business Marketing

Juggling and managing your time with running a business is a difficult task. You may not want to admit it, but there are other aspects of your business that you fail to give attention to. Marketing your business allows you to gain customers. More customers mean more income.

However, marketing is challenging with so many things on your plate. Instead of forcing yourself, outsource your marketing needs to a professional. These services can guarantee that your investment is worth the price and will help scale your businesses.

Expand Your Reach

You reach more customers as you venture further. Consider opening new branches in different cities if you have a physical store to attract more clients. For your ecommerce counterpart, you can widen your shipping options.

Small businesses usually start deliveries locally, but you can extend your reach nationwide or internationally. Look for shipping partners that will give the best deals to help you reach more customers.

Upsell Your Products

Even big companies use this strategy to increase their total revenue. Offering a higher-priced product can help simple transactions turn into valuable ones. The process of upselling is offering your customer a better version of their original choice. A great example is mobile phones. Companies usually offer products with bigger memory or better performance for a higher price.

Just remember, when you upsell your products, it should be something related to the original choice to find success in your upsell strategy. If they are buying a mobile phone, upsell a better version—not a laptop or other types of gadgets.

business expense receipts

Get Financial Accounting Services at Unloop

Managing your expenses and revenue also includes accounting. Accounting helps owners see their company's financial performance and prepares their business for tax season. When it comes to accounting, Unloop offers different services for small ecommerce businesses.

If you need help managing your revenue and expenses, our bookkeeping services will help you keep up with your business finances. Our services include:

  • Preparing financial statements such as income statements, balance sheets and cash flow statements.
  • Integrating your business to accounting software such as QuickBooks or Xero so you can have real-time updates of your expenses and income.
  • Filing and preparing taxes by our partner firms or your own CPAs to keep you on top of your company's obligations.
  • Using the accrual accounting method for creating financial statements and creating custom analytics for your business every 15th of the month.
  • Unlimited support from our experts through Slack.

Keeping track of how much your company earns and spends in a specific period keeps your business operations steady and running. Managing expenses and revenue is a challenge, and we hope these tips help you understand and handle your finances better.
For more accounting services, Unloop also offers payroll, taxes, forecasting and accounts payables. Book a call with us now and talk to an expert for free!

Read more

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.

Picture this: You’re an entrepreneur who owns a small business in Toronto. You figure your business will be even better by having a bookkeeper on board. With that in mind, you hop on a computer, open up a search engine, and type “bookkeeping services Toronto”, expecting to find quick and easy bookkeeping solutions. 

You check the companies that offer small business bookkeeping in Toronto, and you learn three things: 

  1. You had no idea accounting firms nearby charge so much for bookkeeping services.
  2. The process involves many steps before you get someone to render bookkeeping services.
  3. Some accounting firms require you to set an appointment and meet them face to face, which might not fit in your busy schedule. 

If you’re reading this, don’t lose hope—this might be the guide you need. 

In this blog post, you’ll learn how to find the best accounting and bookkeeping services that will match your business. You’ll also find out how Unloop can help you manage your books without you spending a lot, going through so many steps, and risking your safety. 

Factors to Consider in Choosing the Best Accounting and Bookkeeping Services in Toronto

First things first, what are the things you must consider before hiring bookkeeping and accounting services in Toronto? The best bookkeeping service provider for your small business is out there; you just need to evaluate your business needs and size to start.

Here’s a list of factors you should think about:

  1. Your Business Needs

When choosing small business bookkeeping services, it’s essential to consider your specific needs. Do you operate a brick-and-mortar store or run an online business on Amazon or other e-commerce sites?

💡Assess the size and complexity of your business operations and the volume of financial transactions you handle. 

Determine if you need help with basic bookkeeping tasks, such as: 

  • recording income and expenses, 
  • business consulting, 
  • financial analysis, 
  • and tax preparation (tax advice, tax planning and filing.) 

Understanding your business needs will help you find a bookkeeping service in Toronto that aligns with your goals and can provide the necessary support right away.  

  1. Chartered Accountants

Another important factor to consider is the expertise and qualifications of the accounting professionals involved. Look for accounting and bookkeeping services that employ top bookkeepers and certified public accountants (CPAs). 

According to CPA Ontario, a non-profit organization, they have 99,000 members, including CPAs from Toronto. These experts can provide financial advice, help manage your taxes, and make your accounting and bookkeeping process stress-free.

  1. Proficiency with Bookkeeping and Accounting Software

Consider the tools and accounting software a bookkeeping and accounting service provider uses. Choose providers who are well-versed with popular accounting software such as QuickBooks and Xero.

💡Efficient use of accounting software can streamline your financial processes and enhance accuracy in your business’s financial health.
  1. Flexibility of Services

Every business has unique requirements, and it is essential to choose accounting and bookkeeping services that offer flexibility. Determine whether a service provider can tailor their services to meet your needs. 

For instance, small business owners may have seasonal fluctuations, so they may need additional support during peak periods. 

They may also look into digitizing their books or adopt cloud-based software—it's important to seek service providers who are well-versed in cloud-based systems such as QuickBooks and Xero. 

Why You Should Get Unloop’s Bookkeeping and Accounting Services

Now that you know the factors to consider when hiring Toronto bookkeeping services, let’s explore why Unloop could be the best service provider for your business:

  1. Competitive Pricing Anywhere

For small business owners like you, running a business has to be cost-efficient. You understand that whatever expenses your business has and will have in the future will ultimately affect your bottom line. You want to spend your resources wisely by investing as much in activities that will yield the most revenue possible. 

Bookkeeping and accounting, unfortunately, do not come cheap. You know why your small business needs an accountant, but the service’s cost doesn’t justify the investment. You want better pricing—a competitive one. Using technology and resources that allow more competitive pricing, Unloop has an edge above traditional accounting services.

  1. Streamlined Processes

We understand that a small business owner like you knows the value of their time. However, the problem with traditional bookkeeping services is that it takes many back-and-forths before the service can officially start. That’s wasted time that costs not only money but also opportunities.

Traditional accounting firms offering bookkeeping services tend to be bureaucratic. We get it. That’s part of why accounting firms are good at what they do: they follow accounting processes and systems by the book, which can be rigid.

Unloop has identified this inefficiency and adopted a more streamlined process to save a lot of time. Our approach is more agile: 

  • Having accounting experts in our ranks who are well-versed in the industry you’re in, can cut unnecessary steps out of the way.
  • No time wasted. We also save you more time (and money) by acquiring the tools and systems to work on your books efficiently. We will hit the ground running by doing bookkeeping services as soon as possible. 
  • Unloop offers 24/7 customer support so that we can continue improving how our services impact your business. This continuous improvement will allow us to save you more time as we move further into our partnership.
  1. Completely Remote

People can do almost anything online. It makes perfect business sense to transfer the cost and burden of bookkeeping to a trustworthy team who can work with you remotely. You get the best pool of talents by outsourcing your bookkeeping to those who can do it well at a cheaper cost from anywhere in the world.

When you outsource your bookkeeping service to a remote team of professionals, there is no need to schedule in-person meetings or travel to a physical location. Remote services allow for scalability, enabling you to pay for the services you need without hiring a dedicated in-house bookkeeper.

This cost-effective approach also benefits small businesses or startups with limited financial resources. These are the things Unloop can do for you. We offer bookkeeping in Toronto, Vaughan, Markham, or anywhere in Canada because we are completely remote.

Unloop Your Business from Inefficiencies

It’s time for you to take your business in the right direction, wherein you adapt to a world of virtual efficiency. Partner with Unloop and have a global team of talented bookkeepers with much more competitive rates than traditional bookkeeping services and a streamlined, agile bookkeeping process from the get-go.

All the while, you can focus your valuable time on managing your business. Plus, you can ensure that your financial information is in the right hands and up-to-date to help you develop strategic decisions for your business.
Book a call today and let Unloop handle your books accurately, efficiently, and 100% remote!

4 Factors in Choosing the Right Bookkeeping Services in Toronto and Why Hire Remote
Watch Now

Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.

Picture this: You’re an entrepreneur who owns a small business in Toronto. You figure your business will be even better by having a bookkeeper on board. With that in mind, you hop on a computer, open up a search engine, and type “bookkeeping services Toronto”, expecting to find quick and easy bookkeeping solutions. 

You check the companies that offer small business bookkeeping in Toronto, and you learn three things: 

  1. You had no idea accounting firms nearby charge so much for bookkeeping services.
  2. The process involves many steps before you get someone to render bookkeeping services.
  3. Some accounting firms require you to set an appointment and meet them face to face, which might not fit in your busy schedule. 

If you’re reading this, don’t lose hope—this might be the guide you need. 

In this blog post, you’ll learn how to find the best accounting and bookkeeping services that will match your business. You’ll also find out how Unloop can help you manage your books without you spending a lot, going through so many steps, and risking your safety. 

Factors to Consider in Choosing the Best Accounting and Bookkeeping Services in Toronto

First things first, what are the things you must consider before hiring bookkeeping and accounting services in Toronto? The best bookkeeping service provider for your small business is out there; you just need to evaluate your business needs and size to start.

Here’s a list of factors you should think about:

  1. Your Business Needs

When choosing small business bookkeeping services, it’s essential to consider your specific needs. Do you operate a brick-and-mortar store or run an online business on Amazon or other e-commerce sites?

💡Assess the size and complexity of your business operations and the volume of financial transactions you handle. 

Determine if you need help with basic bookkeeping tasks, such as: 

  • recording income and expenses, 
  • business consulting, 
  • financial analysis, 
  • and tax preparation (tax advice, tax planning and filing.) 

Understanding your business needs will help you find a bookkeeping service in Toronto that aligns with your goals and can provide the necessary support right away.  

  1. Chartered Accountants

Another important factor to consider is the expertise and qualifications of the accounting professionals involved. Look for accounting and bookkeeping services that employ top bookkeepers and certified public accountants (CPAs). 

According to CPA Ontario, a non-profit organization, they have 99,000 members, including CPAs from Toronto. These experts can provide financial advice, help manage your taxes, and make your accounting and bookkeeping process stress-free.

  1. Proficiency with Bookkeeping and Accounting Software

Consider the tools and accounting software a bookkeeping and accounting service provider uses. Choose providers who are well-versed with popular accounting software such as QuickBooks and Xero.

💡Efficient use of accounting software can streamline your financial processes and enhance accuracy in your business’s financial health.
  1. Flexibility of Services

Every business has unique requirements, and it is essential to choose accounting and bookkeeping services that offer flexibility. Determine whether a service provider can tailor their services to meet your needs. 

For instance, small business owners may have seasonal fluctuations, so they may need additional support during peak periods. 

They may also look into digitizing their books or adopt cloud-based software—it's important to seek service providers who are well-versed in cloud-based systems such as QuickBooks and Xero. 

Why You Should Get Unloop’s Bookkeeping and Accounting Services

Now that you know the factors to consider when hiring Toronto bookkeeping services, let’s explore why Unloop could be the best service provider for your business:

  1. Competitive Pricing Anywhere

For small business owners like you, running a business has to be cost-efficient. You understand that whatever expenses your business has and will have in the future will ultimately affect your bottom line. You want to spend your resources wisely by investing as much in activities that will yield the most revenue possible. 

Bookkeeping and accounting, unfortunately, do not come cheap. You know why your small business needs an accountant, but the service’s cost doesn’t justify the investment. You want better pricing—a competitive one. Using technology and resources that allow more competitive pricing, Unloop has an edge above traditional accounting services.

  1. Streamlined Processes

We understand that a small business owner like you knows the value of their time. However, the problem with traditional bookkeeping services is that it takes many back-and-forths before the service can officially start. That’s wasted time that costs not only money but also opportunities.

Traditional accounting firms offering bookkeeping services tend to be bureaucratic. We get it. That’s part of why accounting firms are good at what they do: they follow accounting processes and systems by the book, which can be rigid.

Unloop has identified this inefficiency and adopted a more streamlined process to save a lot of time. Our approach is more agile: 

  • Having accounting experts in our ranks who are well-versed in the industry you’re in, can cut unnecessary steps out of the way.
  • No time wasted. We also save you more time (and money) by acquiring the tools and systems to work on your books efficiently. We will hit the ground running by doing bookkeeping services as soon as possible. 
  • Unloop offers 24/7 customer support so that we can continue improving how our services impact your business. This continuous improvement will allow us to save you more time as we move further into our partnership.
  1. Completely Remote

People can do almost anything online. It makes perfect business sense to transfer the cost and burden of bookkeeping to a trustworthy team who can work with you remotely. You get the best pool of talents by outsourcing your bookkeeping to those who can do it well at a cheaper cost from anywhere in the world.

When you outsource your bookkeeping service to a remote team of professionals, there is no need to schedule in-person meetings or travel to a physical location. Remote services allow for scalability, enabling you to pay for the services you need without hiring a dedicated in-house bookkeeper.

This cost-effective approach also benefits small businesses or startups with limited financial resources. These are the things Unloop can do for you. We offer bookkeeping in Toronto, Vaughan, Markham, or anywhere in Canada because we are completely remote.

Unloop Your Business from Inefficiencies

It’s time for you to take your business in the right direction, wherein you adapt to a world of virtual efficiency. Partner with Unloop and have a global team of talented bookkeepers with much more competitive rates than traditional bookkeeping services and a streamlined, agile bookkeeping process from the get-go.

All the while, you can focus your valuable time on managing your business. Plus, you can ensure that your financial information is in the right hands and up-to-date to help you develop strategic decisions for your business.
Book a call today and let Unloop handle your books accurately, efficiently, and 100% remote!

Read more

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.

Many Canadians started online businesses during the lockdown, while some pivoted their traditional brick-and-mortar stores into online ones. Mississauga is no stranger to these businesses. But, these new ecommerce sellers often find it hard to keep track of cash flow, which is why they must hire the best bookkeeping services in Mississauga. 

In this blog post, you’ll learn how to choose the right bookkeeping services and the qualities that make an accounting firm the best for your business. 

Things To Consider When Choosing Bookkeeping Services in Mississauga

You can choose from plenty of bookkeeping support services in Mississauga. But before committing to one particular service, you have to consider two things.

  1. Ask yourself what bookkeeping services you need.

While there are plenty of bookkeeping providers in Mississauga, some of them may provide certain services only. Before committing to a bookkeeping company, you should assess what specific areas of bookkeeping you need help with.

For example, you may need help managing your financial statements, such as cash flow, accounts payable, and payroll. Those are the easier parts of bookkeeping. But there’s also the rigorous side of it, such as tax planning. The services your business needs will mostly depend on your company’s size. 

<$50,000 monthly revenueBasic monitoring of cash flow
Payroll services
>$50,000 monthly revenueBookkeeping
Tax services

If your business has less than $50,000 monthly revenue, you’ll most likely just need basic monitoring of cash flow, payroll services, and other areas of financial management. But if you make more than $50,000, you might need to consider bookkeeping and income tax services. This is a good sign because more accounting work means your business has grown more than expected!

  1. Assess how knowledgeable you are with bookkeeping services.

Some small business owners opt to do their books on their own. If you’re also thinking of doing that, you need expertise in performing bookkeeping tasks. You should know how to crunch and analyze numbers, and organize and file books. More importantly, you should know the tax requirements in your area. 

It sounds like it requires a ton of time and effort, and it does. But as a business owner, you’ll want to focus your energy on operating and growing your business. So, if you need help in managing your books, especially with making a bookkeeping and tax services business plan, it’s a good business move to trust the experts with it.

a graphic showing the good qualities of good bookkeeping services, from left to right: competitive pricing, 24/7 monthly support, regular monthly reports.

Qualities of Good Bookkeeping and Accounting Services in Mississauga

The two listed above are the questions you should ask yourself before getting bookkeeping and accounting services. After evaluating your business needs, you’re ready to move forward and choose which bookkeeping services you will get. Here are some things to consider during your search.

  1. They offer competitive pricing.

Canada's high cost of living can be a challenge for many residents, especially business owners. And it’s no secret that accounting and bookkeeping services are costly. After all, this is a fairly technical field, and you’ll want to have professional bookkeepers or a hired professional accountant working on your books to ensure everything is accurate. 

Since you’re in the ecommerce industry, it makes sense to work with a company that focuses on providing the best bookkeeping services using the latest accounting software at competitive prices. 

Opting for this will lower your bookkeeping costs, eventually giving you more profit. 

  1. They offer 24/7 customer support.
💡A good bookkeeping service should always be available to assist you 24/7.

If you have any clarifications about the numbers your business is generating, you should be able to ask them and have the answer right away. You won’t get this if you work with traditional bookkeepers and accountants. These people get extremely busy, especially during tax season. You can barely get a hold of them during this time, but it shouldn’t be an excuse to leave you hanging. 

The best bookkeeping services can immediately give you clarification when you need it. It gives you peace of mind and understanding about your numbers, leading you to make better business decisions.

  1. They produce your monthly reports without fail.

Numbers are the backbone of any business. That is why checking and analyzing your financial data monthly is important. Through this, you get a detailed report of how well your business is performing, particularly with your sales and overall expenses. These reports will tell you if your business is still profitable or not.

This is especially important In Mississauga, where businesses are competitive. A good bookkeeping service provider in Mississauga can help you succeed in your online business by providing monthly detailed reports.

Work With the Best Bookkeeping Services in Mississauga

Business accounting is a crucial and technical process you should invest in. Understandably, you cannot do it all by yourself. You’ll need the help of a trusted Mississauga bookkeeping service company.

Unloop provides expert accounting, bookkeeping, and even forecasting services targeted toward online businesses in Mississauga. With the help of partner accounting firms and accounting service integrations such as Xero and QuickBooks, we will provide you with the best bookkeeping service in the city.
Ready to focus on growing your business? Book a call with us today, and let us do your books for you!

3 Things To Look For in the Best Bookkeeping Services in Mississauga
Watch Now

Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.

Many Canadians started online businesses during the lockdown, while some pivoted their traditional brick-and-mortar stores into online ones. Mississauga is no stranger to these businesses. But, these new ecommerce sellers often find it hard to keep track of cash flow, which is why they must hire the best bookkeeping services in Mississauga. 

In this blog post, you’ll learn how to choose the right bookkeeping services and the qualities that make an accounting firm the best for your business. 

Things To Consider When Choosing Bookkeeping Services in Mississauga

You can choose from plenty of bookkeeping support services in Mississauga. But before committing to one particular service, you have to consider two things.

  1. Ask yourself what bookkeeping services you need.

While there are plenty of bookkeeping providers in Mississauga, some of them may provide certain services only. Before committing to a bookkeeping company, you should assess what specific areas of bookkeeping you need help with.

For example, you may need help managing your financial statements, such as cash flow, accounts payable, and payroll. Those are the easier parts of bookkeeping. But there’s also the rigorous side of it, such as tax planning. The services your business needs will mostly depend on your company’s size. 

<$50,000 monthly revenueBasic monitoring of cash flow
Payroll services
>$50,000 monthly revenueBookkeeping
Tax services

If your business has less than $50,000 monthly revenue, you’ll most likely just need basic monitoring of cash flow, payroll services, and other areas of financial management. But if you make more than $50,000, you might need to consider bookkeeping and income tax services. This is a good sign because more accounting work means your business has grown more than expected!

  1. Assess how knowledgeable you are with bookkeeping services.

Some small business owners opt to do their books on their own. If you’re also thinking of doing that, you need expertise in performing bookkeeping tasks. You should know how to crunch and analyze numbers, and organize and file books. More importantly, you should know the tax requirements in your area. 

It sounds like it requires a ton of time and effort, and it does. But as a business owner, you’ll want to focus your energy on operating and growing your business. So, if you need help in managing your books, especially with making a bookkeeping and tax services business plan, it’s a good business move to trust the experts with it.

a graphic showing the good qualities of good bookkeeping services, from left to right: competitive pricing, 24/7 monthly support, regular monthly reports.

Qualities of Good Bookkeeping and Accounting Services in Mississauga

The two listed above are the questions you should ask yourself before getting bookkeeping and accounting services. After evaluating your business needs, you’re ready to move forward and choose which bookkeeping services you will get. Here are some things to consider during your search.

  1. They offer competitive pricing.

Canada's high cost of living can be a challenge for many residents, especially business owners. And it’s no secret that accounting and bookkeeping services are costly. After all, this is a fairly technical field, and you’ll want to have professional bookkeepers or a hired professional accountant working on your books to ensure everything is accurate. 

Since you’re in the ecommerce industry, it makes sense to work with a company that focuses on providing the best bookkeeping services using the latest accounting software at competitive prices. 

Opting for this will lower your bookkeeping costs, eventually giving you more profit. 

  1. They offer 24/7 customer support.
💡A good bookkeeping service should always be available to assist you 24/7.

If you have any clarifications about the numbers your business is generating, you should be able to ask them and have the answer right away. You won’t get this if you work with traditional bookkeepers and accountants. These people get extremely busy, especially during tax season. You can barely get a hold of them during this time, but it shouldn’t be an excuse to leave you hanging. 

The best bookkeeping services can immediately give you clarification when you need it. It gives you peace of mind and understanding about your numbers, leading you to make better business decisions.

  1. They produce your monthly reports without fail.

Numbers are the backbone of any business. That is why checking and analyzing your financial data monthly is important. Through this, you get a detailed report of how well your business is performing, particularly with your sales and overall expenses. These reports will tell you if your business is still profitable or not.

This is especially important In Mississauga, where businesses are competitive. A good bookkeeping service provider in Mississauga can help you succeed in your online business by providing monthly detailed reports.

Work With the Best Bookkeeping Services in Mississauga

Business accounting is a crucial and technical process you should invest in. Understandably, you cannot do it all by yourself. You’ll need the help of a trusted Mississauga bookkeeping service company.

Unloop provides expert accounting, bookkeeping, and even forecasting services targeted toward online businesses in Mississauga. With the help of partner accounting firms and accounting service integrations such as Xero and QuickBooks, we will provide you with the best bookkeeping service in the city.
Ready to focus on growing your business? Book a call with us today, and let us do your books for you!

Read more

Distinguished by the North Saskatchewan River, Edmonton is a modern city found in flat prairie scenery. Oil is the prevailing factor in the economy of this beautiful city. Besides that, it also hosts industries related to oil production like engineering and manufacturing. With that said, looking for bookkeeping in Edmonton is not much of a challenge. 

Edmonton

Edmonton is the capital city of Alberta. Also known as the Gateway to the North, it is a sparkling city at the heart of the wilderness. It has a popular downtown tourist destination home to world-renowned bakeries, coffee shops, distilleries, and restaurants. Besides that, it has a booming central business district with its high-rise buildings and condominiums. 

Home to multitudes of immigrants, making Edmonton a culturally diverse city. With this multi-cultural heritage, the city has many ethnic districts like Chinatown and Little Italy. Downtown Edmonton is also the home of the Avenue of Nations that houses various stores and restaurants of diverse cuisine and cultures. 

Operating a Small Business in Edmonton

Suppose you are one of the current entrepreneurs who started a small business in Edmonton; congratulations! After years of back-breaking labor, you finally step out of your comfort zone and go after your passion. Nothing brings you much pleasure in life than following your dream. And you are willing to do everything in your ability to make that vision come to life.

A small business is the extension of its owner’s personality or passion. For example, it is reasonable to assume that a person who loves to bake may open up a bakery someday. Yet, while dreams are enough to motivate you to start a business, it is not enough reason for you to succeed. 

It is tough to accept that passion alone is not enough reason for a business to succeed. If you happen to open your business in Edmonton recently, chances are you are doing your own bookkeeping. And if you do, the odds are overwhelming you right now because of all your duties. 

Mismanagement is one of the prime culprits why small businesses break down. It is usual for small businesses to have less functional specialists like bookkeepers. If you are a small entrepreneur, you most likely do not make money daily. On top of that, most are not aware of your brand, so make an effort to spread the word. Looking for an Edmonton-based bookkeeping service is probably the least of your worries.

Looking for an Edmonton-based bookkeeping service is probably the least of your worries

Operating your business is tough enough, to begin with. Then, add in the marketing aspect, and it needs more diligent work. Yet, try to do your bookkeeping, and it becomes unrealistic. There is just no way you can maintain that. 

Bookkeeping In Edmonton

Bookkeeping services are expensive. That is why small entrepreneurs are hesitant to get a bookkeeper. If ever you as a small business owner have the money, you would rather spend it expanding or promoting your business. Bookkeeping in Edmonton usually costs as low as $17 up to $28 an hour. 

But what if there was an affordable solution to your bookkeeping problems? 

Virtual bookkeeping services are becoming a more popular alternative to in-person bookkeeping in Edmonton or in any place for that matter. A typical online bookkeeping firm may cost as low as $199 a month, depending on your business needs. It can be daunting a first, but it is a sure-fire way to lower your bookkeeping costs.

Besides that, an online bookkeeping firm can work with you anywhere in the world. So whether you are from Ontario or Vancouver, there is a virtual bookkeeper for your business needs. There are also loads of affordable outsourcing options to choose from. 

In A Nutshell

While you may see bookkeeping as an unnecessary expense, keep in mind that it is an integral part of your success. Not only do bookkeepers manage records, but they also provide you insight to take your business to the next level. Bookkeepers are not an expense. They are an investment. 

Edmonton is a city filled with beautiful sights. It is one of Canada’s thriving hotspots for culture, music, and food. It is a fantastic city where dreams are made and eventually come true with the right kind of help. 

Whether you are looking for local bookkeeping companies in Edmonton or an online approach, there is no denying that they are essential. In reality, they can avoid unnecessary expenses and, not to mention, a lot of headaches. But most important of all, a reliable bookkeeper gives you peace of mind while focusing on doing what you love—your business.

Easiest Way To Save Money On Bookkeeping: Edmonton Edition
Watch Now

Distinguished by the North Saskatchewan River, Edmonton is a modern city found in flat prairie scenery. Oil is the prevailing factor in the economy of this beautiful city. Besides that, it also hosts industries related to oil production like engineering and manufacturing. With that said, looking for bookkeeping in Edmonton is not much of a challenge. 

Edmonton

Edmonton is the capital city of Alberta. Also known as the Gateway to the North, it is a sparkling city at the heart of the wilderness. It has a popular downtown tourist destination home to world-renowned bakeries, coffee shops, distilleries, and restaurants. Besides that, it has a booming central business district with its high-rise buildings and condominiums. 

Home to multitudes of immigrants, making Edmonton a culturally diverse city. With this multi-cultural heritage, the city has many ethnic districts like Chinatown and Little Italy. Downtown Edmonton is also the home of the Avenue of Nations that houses various stores and restaurants of diverse cuisine and cultures. 

Operating a Small Business in Edmonton

Suppose you are one of the current entrepreneurs who started a small business in Edmonton; congratulations! After years of back-breaking labor, you finally step out of your comfort zone and go after your passion. Nothing brings you much pleasure in life than following your dream. And you are willing to do everything in your ability to make that vision come to life.

A small business is the extension of its owner’s personality or passion. For example, it is reasonable to assume that a person who loves to bake may open up a bakery someday. Yet, while dreams are enough to motivate you to start a business, it is not enough reason for you to succeed. 

It is tough to accept that passion alone is not enough reason for a business to succeed. If you happen to open your business in Edmonton recently, chances are you are doing your own bookkeeping. And if you do, the odds are overwhelming you right now because of all your duties. 

Mismanagement is one of the prime culprits why small businesses break down. It is usual for small businesses to have less functional specialists like bookkeepers. If you are a small entrepreneur, you most likely do not make money daily. On top of that, most are not aware of your brand, so make an effort to spread the word. Looking for an Edmonton-based bookkeeping service is probably the least of your worries.

Looking for an Edmonton-based bookkeeping service is probably the least of your worries

Operating your business is tough enough, to begin with. Then, add in the marketing aspect, and it needs more diligent work. Yet, try to do your bookkeeping, and it becomes unrealistic. There is just no way you can maintain that. 

Bookkeeping In Edmonton

Bookkeeping services are expensive. That is why small entrepreneurs are hesitant to get a bookkeeper. If ever you as a small business owner have the money, you would rather spend it expanding or promoting your business. Bookkeeping in Edmonton usually costs as low as $17 up to $28 an hour. 

But what if there was an affordable solution to your bookkeeping problems? 

Virtual bookkeeping services are becoming a more popular alternative to in-person bookkeeping in Edmonton or in any place for that matter. A typical online bookkeeping firm may cost as low as $199 a month, depending on your business needs. It can be daunting a first, but it is a sure-fire way to lower your bookkeeping costs.

Besides that, an online bookkeeping firm can work with you anywhere in the world. So whether you are from Ontario or Vancouver, there is a virtual bookkeeper for your business needs. There are also loads of affordable outsourcing options to choose from. 

In A Nutshell

While you may see bookkeeping as an unnecessary expense, keep in mind that it is an integral part of your success. Not only do bookkeepers manage records, but they also provide you insight to take your business to the next level. Bookkeepers are not an expense. They are an investment. 

Edmonton is a city filled with beautiful sights. It is one of Canada’s thriving hotspots for culture, music, and food. It is a fantastic city where dreams are made and eventually come true with the right kind of help. 

Whether you are looking for local bookkeeping companies in Edmonton or an online approach, there is no denying that they are essential. In reality, they can avoid unnecessary expenses and, not to mention, a lot of headaches. But most important of all, a reliable bookkeeper gives you peace of mind while focusing on doing what you love—your business.

Read more

So you've taken the next big step. Congratulations! Starting a new business is no small feat. It must have taken months or years to get to where you are now, with loads of time to conceptualize and implement a business plan in between. However, before you truly hit the road, you must lay some solid groundwork first.

Running a company is a never-ending stream of rewarding successes accompanied by ever-expanding to-do lists. To consistently stay on top of your business, you'll have to keep track of the inevitable accounting duties. Bookkeeping that is accurate and up to date is the foundation of every profitable small business. Understanding bookkeeping best practices and when to hire business bookkeeping services is critical for keeping the company going smoothly now and in the future, regardless of the type of business you manage.

If learning the ins and outs of simple bookkeeping for small businesses sounds overwhelming, try to reel the information in slowly but surely. Learn about the various options open to you and why it is essential to maintain accurate financial records. But first of all, let's make sure we're on the same page.

What are Bookkeeping Tax Services?

Bookkeeping is the method of keeping records of any financial transaction made by a business from its inception to its closure. Each financial transaction is registered based on supporting documents, depending on the type of accounting method used for the company. That paperwork may be a receipt, an invoice, a sales order, or some form of the financial report demonstrating that the transaction occurred.

Bookkeeping transactions can be registered manually in a journal or inputted automatically using software such as QuickBooks bookkeeping services. Most companies now maintain accounts that display their financial expenses using advanced bookkeeping computer programs. To report financial transactions, bookkeepers may use either single-entry or double-entry bookkeeping. Bookkeepers must grasp the firm's accounting chart and how to manage the books using debits and credits. 

Tips for Getting Your Small Business Bookkeeping Started:

1. Automate Repetitive Tasks

Automation has been dominating in many industries, and for a good cause. After all, when an AI is taking care of most of the mundane tasks in your company, you gather yourself time and money to grow other aspects of your business. With that said, automation feels right at home with small business bookkeeping. The accounting process is filled with repetitive tasks that can pile on and add unnecessary workload to your employees. Modern accounting software is more than capable of automatically calculating important financial figures while simultaneously organizing your spreadsheets.  

When shopping around for accounting software, it's a good idea to consider your company's storage, accessibility, and security needs. Don't go buying the first software that comes up on your google search. Instead, identify your needs first, so you can optimize your subscription costs and make the most out of the software.

2. Don't Pay Business-Related Expenses Out of Your Pocket

Many situations will arise where you'll have to shoulder miscellaneous costs out of your pocket. While this might seem insignificant, it's good accounting practice to record those expenses in your company's records. Keep the business receipts and submit them to your accounting staff to reimburse you with a check. Reimbursing business-related costs should follow the same process as reimbursing your employees. This might include: Recording the details of your purchase on a spreadsheet (date, vendor, purpose, receipt), subsequently followed by an issuance of the reimbursement cheque. On that note, the cheque should be different from a salary cheque, so your bookkeeper can easily categorize the expense in your books.

3. Establish an Organized Filing System

Newsflash: It's a business. You're probably going to be getting an onslaught of paperwork. Accounting source papers are a recorded document of all your business' transactions. Source papers are essential in answering any queries or demonstrate proof for when the taxman comes knocking. Most tax authorities mandate companies to keep 5-7 years' worth of documents. This could include invoices, receipts, wage records, and other documents demonstrating a crumb trail of your business's financial transactions.

When your documents are in disarray, you'll be in a bind when you need a certain document. It'll be like finding a needle in a haystack. To avoid this issue, it's best to have an archiving system where you can organize files according to date, type of transaction, etc. Having an organized system also saves you money and time trying to procure documents that can no longer be found in any practicable time horizon.

4. Don't Forget Your Tax Deadlines

It's easy to lose track of a business, especially with all the aspects that need attending to. This can lead to missing important tax filing deadlines. However, it's as easy as setting up a huge calendar or a google alert for important upcoming dates to ensure you never have to worry about missing it. 

Harking back on number 3, when you have an organized archiving system, you can easily set up all the required documents so that you can be prepared ahead of time, which helps avoid all the fussing about during the busy tax season.

5. Follow Up on Invoices

Late or unpaid invoices can leave plenty of frustratingly blank spaces in your spreadsheet. When running a business, it's your prime responsibility to develop a strategy for effectively following up and managing unfulfilled invoices. This could include writing down penalty clauses for late payments or having a contact team follow up consistently on the invoice. 

As a rule of thumb, most firms assign a 30-day, 60-day, or 90-day category on late invoices, with a different strategy for each milestone. Of course, we'd all hate for it to reach the 90-day mark, but it doesn't hurt to be prepared. Late payments are incredibly impactful, especially for cash-intensive businesses.

Factors Affecting the Cost of Capital Tax and Bookkeeping Services

The expense of hiring a bookkeeping service depends on a lot of variables. The rates can be influenced by the following:

  • Complexity and size of your business
  • Volume of transactions
  • Number of employees
  • Payroll processing methods 
  • Number of credit cards
  • Amount of balance sheets to organize
  • The type of accounting process 
  • Rules and regulations

Reporting requirements 

If simple bookkeeping is what your business requires at this time, you'll need to consider whether to do it in-house or outsource it. If you wish to appoint and oversee a bookkeeper, you must also decide if the job is part-time or full-time. If you plan to outsource, you can choose between local bookkeeping agencies, local CPA firms that provide bookkeeping services, or specialized, global outsourced bookkeeping firms. Let's take a look at three different solutions that your organization could explore to meet this need.

Part-time bookkeeping

Hiring a part-time bookkeeping service is more appropriate for small to medium-sized businesses. The costs of hiring such a service can vary greatly. Part-time bookkeepers are paid an average hourly rate of $20, which increases depending on the position or job description. Part-time bookkeepers are expected to perform basic bookkeeping tasks with your collaboration and consistent supervision.

A part-time bookkeeping service is an excellent choice if you're able to do a portion of your bookkeeping tasks and errands per month but need some assistance. You can expect your part-time bookkeeper to enter receipts and keep tabs on the employee timesheets, as well as organizing the accounts receivable and payable. When hiring a bookkeeper on a part-time basis, the management should check on the bookkeeper's job to ensure its speed and accuracy.

Some businesses take a shortcut by teaching a manager or an office employee the ropes on fulfilling part-time bookkeeping tasks. While this has a chance at success and is often the most budget-wise path for most businesses, the consequences of a steep learning curve and time spent can be detrimental to the business' productivity.

Full-time Bookkeeping

While the rates can vary depending on your location, the average rate of a full-time bookkeeper can be anywhere between $35,000 to $55,000 per year, on top of bonuses and overhead. As per GlassDoor's reports, a full-time bookkeeper working in high-cost cities like New York and Los Angeles could reach upwards to an amount of $70,000. Overheads can mean an additional 20% on top of the wage for office parking or lunch allowance.

A full-time bookkeeper is tasked with organizing the company's accounts daily. Having your accounts and documents organized and up to date is the core of a company's financial capabilities. Therefore, hiring a full-time bookkeeper for your growing company could spell out success for your long-term goals.

A full-time bookkeeper may be tasked with but not limited to activities such as fee payments, customer billings, timesheet organization and accounting, and laying down financial statements every end of the month. As the company owner, you would also need to double-check the final reports to ensure consistency. 

Outsourcing

To effectively outsource your bookkeeping responsibilities, you'll need to figure out what aspects of your financial management needs outsourcing. Outsourcing rates can vary depending on the volume of transactions and other factors you studied when hiring a part-time bookkeeper and defining their role. The estimated monthly cost of outsourcing a bookkeeping service can be anywhere between $500 to $2500. Outsourcing gives you the flexibility to customize what specific service your business needs.

You have the option of outsourcing more specialized accounting functions and controller roles in attaining a complete 'virtual accounting department", which would no doubt increase the pay scale but could be just what your business needs to accelerate its growth. Suppose the company is still in the developmental phase. In that case, you should consider making a move to full accrual accounting, with management and financial reporting that will make it easy to scale your business. This degree of complexity in financial management goes beyond your knowledge and will be instrumental for other business stakeholders such as investors, advisors, and banks.

If part-time or full-time bookkeeping seems to be limited to your business needs, choosing to go with a highly specialized bookkeeping firm may be the wisest choice.

People having a meeting

Conclusion

There's plenty to learn, but the fact that you're reading this signifies that you have your business's best interest at heart. Acing your books right off the bat saves you headaches down the road. If you're unsure about organizing your finances, choosing any of the bookkeeping services above may be the right choice for you.

A Primer on Small Business Bookkeeping
Watch Now

So you've taken the next big step. Congratulations! Starting a new business is no small feat. It must have taken months or years to get to where you are now, with loads of time to conceptualize and implement a business plan in between. However, before you truly hit the road, you must lay some solid groundwork first.

Running a company is a never-ending stream of rewarding successes accompanied by ever-expanding to-do lists. To consistently stay on top of your business, you'll have to keep track of the inevitable accounting duties. Bookkeeping that is accurate and up to date is the foundation of every profitable small business. Understanding bookkeeping best practices and when to hire business bookkeeping services is critical for keeping the company going smoothly now and in the future, regardless of the type of business you manage.

If learning the ins and outs of simple bookkeeping for small businesses sounds overwhelming, try to reel the information in slowly but surely. Learn about the various options open to you and why it is essential to maintain accurate financial records. But first of all, let's make sure we're on the same page.

What are Bookkeeping Tax Services?

Bookkeeping is the method of keeping records of any financial transaction made by a business from its inception to its closure. Each financial transaction is registered based on supporting documents, depending on the type of accounting method used for the company. That paperwork may be a receipt, an invoice, a sales order, or some form of the financial report demonstrating that the transaction occurred.

Bookkeeping transactions can be registered manually in a journal or inputted automatically using software such as QuickBooks bookkeeping services. Most companies now maintain accounts that display their financial expenses using advanced bookkeeping computer programs. To report financial transactions, bookkeepers may use either single-entry or double-entry bookkeeping. Bookkeepers must grasp the firm's accounting chart and how to manage the books using debits and credits. 

Tips for Getting Your Small Business Bookkeeping Started:

1. Automate Repetitive Tasks

Automation has been dominating in many industries, and for a good cause. After all, when an AI is taking care of most of the mundane tasks in your company, you gather yourself time and money to grow other aspects of your business. With that said, automation feels right at home with small business bookkeeping. The accounting process is filled with repetitive tasks that can pile on and add unnecessary workload to your employees. Modern accounting software is more than capable of automatically calculating important financial figures while simultaneously organizing your spreadsheets.  

When shopping around for accounting software, it's a good idea to consider your company's storage, accessibility, and security needs. Don't go buying the first software that comes up on your google search. Instead, identify your needs first, so you can optimize your subscription costs and make the most out of the software.

2. Don't Pay Business-Related Expenses Out of Your Pocket

Many situations will arise where you'll have to shoulder miscellaneous costs out of your pocket. While this might seem insignificant, it's good accounting practice to record those expenses in your company's records. Keep the business receipts and submit them to your accounting staff to reimburse you with a check. Reimbursing business-related costs should follow the same process as reimbursing your employees. This might include: Recording the details of your purchase on a spreadsheet (date, vendor, purpose, receipt), subsequently followed by an issuance of the reimbursement cheque. On that note, the cheque should be different from a salary cheque, so your bookkeeper can easily categorize the expense in your books.

3. Establish an Organized Filing System

Newsflash: It's a business. You're probably going to be getting an onslaught of paperwork. Accounting source papers are a recorded document of all your business' transactions. Source papers are essential in answering any queries or demonstrate proof for when the taxman comes knocking. Most tax authorities mandate companies to keep 5-7 years' worth of documents. This could include invoices, receipts, wage records, and other documents demonstrating a crumb trail of your business's financial transactions.

When your documents are in disarray, you'll be in a bind when you need a certain document. It'll be like finding a needle in a haystack. To avoid this issue, it's best to have an archiving system where you can organize files according to date, type of transaction, etc. Having an organized system also saves you money and time trying to procure documents that can no longer be found in any practicable time horizon.

4. Don't Forget Your Tax Deadlines

It's easy to lose track of a business, especially with all the aspects that need attending to. This can lead to missing important tax filing deadlines. However, it's as easy as setting up a huge calendar or a google alert for important upcoming dates to ensure you never have to worry about missing it. 

Harking back on number 3, when you have an organized archiving system, you can easily set up all the required documents so that you can be prepared ahead of time, which helps avoid all the fussing about during the busy tax season.

5. Follow Up on Invoices

Late or unpaid invoices can leave plenty of frustratingly blank spaces in your spreadsheet. When running a business, it's your prime responsibility to develop a strategy for effectively following up and managing unfulfilled invoices. This could include writing down penalty clauses for late payments or having a contact team follow up consistently on the invoice. 

As a rule of thumb, most firms assign a 30-day, 60-day, or 90-day category on late invoices, with a different strategy for each milestone. Of course, we'd all hate for it to reach the 90-day mark, but it doesn't hurt to be prepared. Late payments are incredibly impactful, especially for cash-intensive businesses.

Factors Affecting the Cost of Capital Tax and Bookkeeping Services

The expense of hiring a bookkeeping service depends on a lot of variables. The rates can be influenced by the following:

  • Complexity and size of your business
  • Volume of transactions
  • Number of employees
  • Payroll processing methods 
  • Number of credit cards
  • Amount of balance sheets to organize
  • The type of accounting process 
  • Rules and regulations

Reporting requirements 

If simple bookkeeping is what your business requires at this time, you'll need to consider whether to do it in-house or outsource it. If you wish to appoint and oversee a bookkeeper, you must also decide if the job is part-time or full-time. If you plan to outsource, you can choose between local bookkeeping agencies, local CPA firms that provide bookkeeping services, or specialized, global outsourced bookkeeping firms. Let's take a look at three different solutions that your organization could explore to meet this need.

Part-time bookkeeping

Hiring a part-time bookkeeping service is more appropriate for small to medium-sized businesses. The costs of hiring such a service can vary greatly. Part-time bookkeepers are paid an average hourly rate of $20, which increases depending on the position or job description. Part-time bookkeepers are expected to perform basic bookkeeping tasks with your collaboration and consistent supervision.

A part-time bookkeeping service is an excellent choice if you're able to do a portion of your bookkeeping tasks and errands per month but need some assistance. You can expect your part-time bookkeeper to enter receipts and keep tabs on the employee timesheets, as well as organizing the accounts receivable and payable. When hiring a bookkeeper on a part-time basis, the management should check on the bookkeeper's job to ensure its speed and accuracy.

Some businesses take a shortcut by teaching a manager or an office employee the ropes on fulfilling part-time bookkeeping tasks. While this has a chance at success and is often the most budget-wise path for most businesses, the consequences of a steep learning curve and time spent can be detrimental to the business' productivity.

Full-time Bookkeeping

While the rates can vary depending on your location, the average rate of a full-time bookkeeper can be anywhere between $35,000 to $55,000 per year, on top of bonuses and overhead. As per GlassDoor's reports, a full-time bookkeeper working in high-cost cities like New York and Los Angeles could reach upwards to an amount of $70,000. Overheads can mean an additional 20% on top of the wage for office parking or lunch allowance.

A full-time bookkeeper is tasked with organizing the company's accounts daily. Having your accounts and documents organized and up to date is the core of a company's financial capabilities. Therefore, hiring a full-time bookkeeper for your growing company could spell out success for your long-term goals.

A full-time bookkeeper may be tasked with but not limited to activities such as fee payments, customer billings, timesheet organization and accounting, and laying down financial statements every end of the month. As the company owner, you would also need to double-check the final reports to ensure consistency. 

Outsourcing

To effectively outsource your bookkeeping responsibilities, you'll need to figure out what aspects of your financial management needs outsourcing. Outsourcing rates can vary depending on the volume of transactions and other factors you studied when hiring a part-time bookkeeper and defining their role. The estimated monthly cost of outsourcing a bookkeeping service can be anywhere between $500 to $2500. Outsourcing gives you the flexibility to customize what specific service your business needs.

You have the option of outsourcing more specialized accounting functions and controller roles in attaining a complete 'virtual accounting department", which would no doubt increase the pay scale but could be just what your business needs to accelerate its growth. Suppose the company is still in the developmental phase. In that case, you should consider making a move to full accrual accounting, with management and financial reporting that will make it easy to scale your business. This degree of complexity in financial management goes beyond your knowledge and will be instrumental for other business stakeholders such as investors, advisors, and banks.

If part-time or full-time bookkeeping seems to be limited to your business needs, choosing to go with a highly specialized bookkeeping firm may be the wisest choice.

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Conclusion

There's plenty to learn, but the fact that you're reading this signifies that you have your business's best interest at heart. Acing your books right off the bat saves you headaches down the road. If you're unsure about organizing your finances, choosing any of the bookkeeping services above may be the right choice for you.

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About unloop

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

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