You should know that most of the business that didn’t take bookkeeping seriously and didn’t update it regularly, suffered huge losses and ended up into a disaster. It doesn’t matter how small your business is, you should always make sure that your books are being updated on a regular basis and readily available as well. If you have maintained your books properly then the business analysis will also become a lot easier for you. So, in this blog post, we will be looking at the top 5 bookkeeping tips for small businesses in order to maintain the operation and maximize the chances of growth.

Automate

You should know that entering data into a spreadsheet and then reconciling numbers is not the right way to move forward with your bookkeeping practice as such an old school method of bookkeeping can increase errors, make you less productive and in the long run become a hassle for you. You should always use cloud-based accounting software like QuickBooks hosting in order to update your books as these cloud accounting solutions automate most of your bookkeeping operations and thus you become quick, accurate and productive.

Plan for Quarterly Reviews

A quarterly review of your books will help you to keep things managed. At the end of every year, you should take an in-depth look at your books and other accounting records. You can analyze your books and other accounting records for trends like increase or drop in sales, revenue per year, or increase in the number of late-paying customers. You should always consult your accountant to know the trends through your books because an accountant will help you to look at the bigger picture. Using the help of trends and a bigger picture of your accounts, you will be able to easily plan for future capital investments.

Track Performance Against Your Plan

You should know that bookkeeping is one of the most useful tools to track your performance against your plan. Designing a financial budget and then tracking the monthly process against the plan should be one of your main priorities of bookkeeping practice. A good bookkeeping practice will not only help you to know what you have done but it will also help you to know how your business is performing. You can easily consult your CPA/QuickBooks ProAdvisors or bookkeeping services and sit with them in order to design a financial budget and revenue forecast. After that, you can compare your results against the budget and then use the same information to streamline your company.

Always Keep Your Personal Finance Separate

One of the biggest mistakes in bookkeeping is mixing personal finance with business finance. You should always keep your personal finance separate from your business finance in order to make things easier for you. You should have a separate account and credit cards for your business because mixing everything will make things complicated and the result will not be good. Keeping separate finances, you will be able to save both time and energy while shifting through expenses since you will not have to filter out any personal expenses you have made.

Keep Tax Deadlines in Mind

In order to avoid any type of problem, you should always prepare ahead of time and set aside money for any type of anticipated tax bills. If you don’t want to pay fines and penalties then you should always file taxes on time and that’s why it’s necessary to keep an eye on the deadline and work accordingly. If you have updated your book regularly and maintained it well throughout the year, then filing tax before the deadline won’t be an issue for you.

If you are running a small business and you use the above-mentioned tips and stay ahead of time. Alongside proper bookkeeping, you will face fewer obstacles and be quick, accurate, productive and effective.

About the Author

Kashyapi has been involved in the world of accounting software, SEO and cloud computing from a very long time and currently, he is working as a lead content writer with MyQBHost, a QuickBooks hosting company. Cloud computing and SEO is what she eats and drinks.

Intuit’s QuickBooks is known in the industry as one of the leaders in accounting software. Designed with small to medium sized businesses in mind, QuickBooks helps business owners with all of their accounting needs. In fact, according to their website, 87% of customers says QuickBooks is essential for running their business.

While there are many different software available to you, QuickBooks offers some of the most extensive accounting capabilities on the market today. It’s easy to use interface makes it simple for business owners to quickly learn how the software works. In addition, since it has been popular since the ‘90s, their decades of experience and extensive online resources help business owners solve any problem they are experiencing with the software.

If you’re thinking of switching from a different accounting system to QuickBooks, it’s important that you convert all of your data for a seamless transition. Learn about the benefits of switching to QuickBooks below, as well as helpful resources on how to switch accounting systems without losing any important business information.

QuickBooks vs. Sage 50

While there are some similarities between QuickBooks and Sage, the two platforms have different specialties. QuickBooks focuses in bookkeeping, and offers a full suite of tools to help manage your business. Some of these tools include payroll management and financial management tools. Formerly known as Peachtree, Sage One offers a few basic bookkeeping features, but concentrates more on client invoicing and project management. Some business owners use Sage with QuickBooks, depending on their business’ needs.

Still, the applications overlap with one another, with both offering the ability to track income and expenses. QuickBooks has an advantage over Sage in that regard with its ability to automatically sync transaction information across bank accounts.

How to Convert from Sage 50 to QuickBooks

Whether you’re switching from Sage to QuickBooks or use both applications, you can convert your Sage files to use on QuickBooks both quickly and at no extra cost. QuickBooks offers a step-by-step guide in their Community Support section that clearly outlines how to use their QuickBooks Conversion tool. This tool can convert key lists, balances, and transactions, including:

• Account lists
• Employee lists
• Item lists
• Customer lists
• Vendor lists
• Account balances
• Customer transactions
• Vendor transactions
• Employee list (with contact information and social security number
• Payroll general ledger account balance information

However, the tool cannot convert the following information:

• Paychecks (will be converted to journal entries)
• Employee year to date information
• Payroll items
• Individual employee wage or deduction information
• Fixed asset items
• Work tickets
• Closed/Partially closed sales orders, purchase orders, and estimates

Users can also manually import a Sage 50/Simply Accounting data set to Inuit by following the steps highlighted here.

QuickBooks vs. Xero

Arguably the two biggest names in cloud accounting software are QuickBooks and Xero. These two softwares are comparable in many key components, but one clear advantage of QuickBooks over Xero is that QuickBooks offers a well-organized UI, making it easy for business owners to navigate the software. Xero, on the other hand, has quite a steep learning curve and the setup is extremely intensive.

How to Convert from Xero to QuickBooks

If you’re switching from Xero to QuickBooks, you want to make sure that the files you need are successfully transferred over to your new accounting software. There are many different ways to go about this. You can provide your Xero administrator user name and password as well as the version of QuickBooks to third party vendors, who will do the work for you.

Business owners also have the option of converting their Xero files themselves. To do this, follow the steps outlined by QBO Chat here. Before you begin, it is advised that you lock your Xero file for the dates before the conversion so that no one makes changes after you begin. In addition, you should save a copy of the balance sheet and income statement reports for all dates. Be sure to use both cash and accrual methods and also the detailed Accounts Receivable and Accounts Payable reports.

You will also need to decide whether or not you want the historical transactions to be part of the new file. If so, you are going to need to decide how far back you should be including.

QuickBooks Desktop vs. QuickBooks Online

So you’ve decided on QuickBooks, but now you must ask yourself this question: QuickBooks Online or QuickBooks Desktop? While both versions of QuickBooks are great, there are many benefits to switching to the online version. For starters, Inuit is pushing their online version of the software by reducing the number of desktop versions available to their customers.

There are many advantages to QuickBooks Online. For those unfamiliar with either version, online is significantly easier to learn and use than Intuit’s desktop offering. In addition, QuickBooks Online can be accessed anywhere as long as you have an internet connection. The desktop version of QuickBooks can only be accessed on the computer you installed the software on. In addition, choosing QuickBooks Online gives you the option of more than 250 different integrations to help customize your software to fit your business’ needs.

How to Convert from QuickBooks Desktop to QuickBooks Online

If you’re looking to convert from Desktop to Online, use the following guides below to help make this process run smooth and efficiently:

• From QuickBooks Desktop for Mac to QuickBooks Online
• From QuickBooks Desktop to QuickBooks Online Pro/Premier

Although they are both Intuit products, there are limitations on what data can be converted and imported to QuickBooks online. Intuit has a clear list of their import limitations, so there are no surprises when you make the switch.

It’s important to note that you can only import your data to QuickBooks within 60 days of your subscription start date. If you’ve had QuickBooks online for more than 60 days, you will either have to find a QuickBooks ProAdvisor or setup a new QuickBooks Online subscription with a different email.

You will also want to prepare your data for export. To do this, make sure you complete the following:

1. Update your data: Now is the perfect time to update your customers and vendors contact information!
2. Complete outstanding tasks: To ensure nothing gets lost, it’s ideal to convert at the end of the month, quarter, or year. If you need to convert sooner, make sure that payroll has been processed, all bank accounts are reconciled, and any inventory adjustments have been made.
3. Backup your data: Having a backup of your data file is never a bad idea. To do this on QuickBooks Desktop, go to file à back up company à create local backup.

1. Do you use Mac machines and software?

If you use Mac rather than windows, you have a few options to choose from. With a shop that is all Mac, your best choices are QuickBooks Online and QuickBooks Mac.

2. Do you want access on the go?

If you are looking for remote access, QuickBooks online is the best choice for you. Access that you can have anytime and anywhere is appealing for many people. There is also a QuickBooks Pro monthly service so that you can enable mobile and remote data access. However, this also is added to the license fee. If you’re doing business anywhere, the best choice will be QuickBooks online.

3. Do you want a QuickBooks version that’s industry specific?

The best choice for you is QuickBooks Premier. There are features with this that are specific to different industries and it offers increased inventory controls that you may need.

4. Do you build products out of raw materials and need to track your inventory?

QuickBooks Pro isn’t a good idea when this is the case, because you’ll be tracking the inventory both for the finished products and raw materials. So you want to choose QuickBooks Premier.

5. Are you looking for something that handles general accounting for a small business?

The one to choose will be QuickBooks Pro. This is QuickBooks’ workhouse addition and it handles just about anything small businesses need. It also works well with an accountant. If you’re looking for a software package for small businesses, QuickBooks Pro’s the way to go.

These are the questions you want to ask when you’re trying to decide on the right QuickBooks version for your business. They will help you with finding the right one for your needs.

Have More Questions?

If you have more questions about your bookkeeping needs, give EZ Ledger, Inc. a call today at 239-249-8086. We would be happy to answer any questions you might have regarding bookkeeping and how we can help. We offer many services, and we look forward to doing business with you in the future!

Pros

Large Network of Support – QuickBooks is the accounting software that most people use. Because of this, if you have problems or a question, you are going to have a huge support network when you have problems or questions. You’re able to network with other QuickBook users on the forums, where you may discover that people are having the same issues or have had them in the past and can help you with the issue.

Low Cost – It’s usually cheaper to use QuickBooks than to hire a bookkeeper or accountant. There are different options that you can use, either online or by buying the basic package. If you are just getting started as a business and you don’t have a big budget, it’s a great way to help your costs stay down.

Comes with Basics – QuickBooks’ basic version comes with accounting features needed by the majority of small businesses. It has features like accounts receivable and payable, invoices, inventory and payroll. You can process people’s credit cards and create checks with this software as well. You also can access a complimentary trial paid so you can see if it’s the best choice for you and your business.

Cons

Security – One downside is if you’re using QuickBooks’ online version rather than the software program, you could have problems with security. Your financial information could be exposed to hackers on the Internet.

Limitations – QuickBooks’ basic version is made for people who have limited financial and accounting needs. Because of this, it won’t offer everything that professional accounting software offers. You’ll also be limited in how many products you’ll be able to list when it comes to inventory.

Upgrading May be Necessary – It’s possible that you’ll discover you’re outgrowing QuickBooks’ basic version as time passes. They do offer an advanced version that has additional features, but it’s a lot more expensive.

Payment Processing Costs – Quickbooks will default to service all your payment processing needs which can be a bit more costly than other. 3rd party quickbooks payment processing options such as PaymentCollect can be substituted to remedy this issue.

These are the advantages and disadvantages of QuickBooks. If you are looking to save money and get some accounting software for your business or your home, it’s a great choice. It’s affordable, has basic features, and it’s easy to use.

Have More Questions?

If you have more questions about your bookkeeping needs, give EZ Ledger, Inc. a call today at 239-249-8086. We would be happy to answer any questions you might have regarding bookkeeping and how we can help. We offer many services, and we look forward to doing business with you in the future!

It’s Very Adaptable

When it comes to security and safety in adaption with trends in cloud technology, QuickBooks is the best. There have been people who criticized Intuit because they didn’t get into accounting in the cloud before now. But moving data that is critical off of a local server and onto a cloud will be a huge undertaking. It takes a lot of caution and prudence.

It’s Great for Small Businesses

Even though QuickBooks is as huge it is, Intuit also remembers the little guys. There was one owner of a small business who won a commercial during the Super Bowl due to a contest through QuickBooks. Intuit also has a program for small businesses that offer videos, consultations, drawings for gift cards and marketing guides, plus a lot more.

It’s Always Backing Up Data

QuickBooks is always backing up your data so that important financial data stays secure and safe. It’s just important that the automatic backups are set up correctly when you begin. You also should be sure that you’re never importing incorrect backups and losing recent data.

Tax Returns are Simple with QuickBooks

Whether it’s used on its own with the internal tax capabilities or used with TurboTax, QuickBooks will help you breathe a lot easier when it comes to tax time.

It Keeps Being User Friendly

No matter how large it grows, they want to keep being user friendly. Made to be easily understood and intuitive, even when someone is using without a financial or accounting background, QuickBooks is the one that people go to for their accounting software choice.

QuickBooks Offers Tools Built in to Boost Efficiency

There are a lot of workarounds and shortcuts in the software that will help the user increase performance and save time while they fulfill important accounting needs. The extensive support and online training Intuit offers is a great tool to help you learn these tasks.

It’s affordable

If you are searching for accounting software that you can use and that won’t break the bank, QuickBooks is a great choice. This is why it’s especially good for small businesses that may not have a lot of money.

These are the seven reasons why choosing QuickBooks is such a good decision. You are going to find that it’s very user friendly, that it’s affordable, and that it’s very efficient. You are never going to find a better piece of accounting software no matter what size your business is and no matter what kind of background you have.