How To Manage Your Company Books On A Budget
It’s mandatory for businesses to prepare proper accounts so that they are compliant with the regulations set out by the Canada Revenue Agency. Maintaining financial information will also keep you up to date on how your company is doing.
However, if you’re a small business, you may not be flush with funds for investing in expensive accounting management tools or personnel. So if you want to manage your company books on a budget of $50-100 per month, we suggest you keep reading. Infinite Accounting Solutions has outlined a few tips and tricks to get your company books done frugally.
Choose the right accounting software
The right accounting software will make all the difference in helping you track revenues, expenses, and pull the correct data to create informative reports for your business.
Before choosing your accounting software, consider your options and the differences between the software. Do you need inventory tracking? What about project allocation? Or foreign currency exchange? Understand what your business needs from accounting software to help you make the best-informed decision.
Learn how to use the program
Some programs are advertised as “user-friendly” and “easy to learn.” However, we’ve found that everyone has different levels of learning. Some owners can learn the program faster, while it can be a foreign language to others.
Whichever accounting software you choose, it’s beneficial to invest time to understand the program and how to use it. Companies are continually making improvements to these programs based on user response, so using the application to its full capabilities only helps the organization in the long run.
Understand the basics of bookkeeping
It’s vital to understand the basics, such as general revenue and expense categories that are related to your industry, and the expenditures that are eligible to be written off. You should be aware of assets, liabilities, equity, revenue, and expense accounts, as this makes a significant difference in reporting.
Hire an accountant to file your year-end taxes
Not only are CPA’s trained to find any errors, but they can also render advice on complicated matters and future growth. An accountant can also provide you with invaluable tax-saving opportunities you may not have considered on your own.
Have an accounting software specialist on call
If you’re learning the accounting software on your own, it’s best to have a specialist available to answer any questions you may have. It will save you time in the run long as they can catch mistakes made in the program, or make suggestions which could increase your efficiency. Having access to a program specialist will also provide you with the guidance and confidence you need to manage your books.
Know when it’s time to hire
As your company grows, managing your books can be tiresome, so understanding the right time to hire a professional to manage your books is crucial. Waiting too long can add unnecessary stress to the business owner, and doing it too early can mean unnecessary spending. So set a goal in terms of revenue or time expenditure, and have a plan for when you achieve it.
On a final note, it’s worth familiarising yourself with payment processing. Payment processing is a standard method of payment which allows businesses to get paid faster. However, there are costs associated with this efficiency, either through monthly fees or as a percentage of the amount. Before adding this service, consider the pros and cons of having this service versus not having this service. How will the delay in payment affect your cash flow? What is the value of your time for having to chase customers for payment and depositing cheques in the bank? Would your customers prefer to pay by credit card or debit? These essential items will help you understand if it’s a worthwhile investment for your organization.
If you need any help in managing your company books on a budget, email us at info@infiniteaccountingsolutions.ca. Our bookkeepers ensure your books are kept up to date and organized using industry-standard bookkeeping practices, allowing you to focus on growing your business.
For more details about getting your company books done by a renowned accounting firm in Langley, Abbotsford, Pitt Meadows, White Rock, Surrey, and the surrounding areas, reach out to Infinite Accounting Solutions in Langley, British Columbia, or get in touch with us by clicking here.