How do I choose the right Accounting Software?

I am often asked How do I choose the right Accounting Software?

The answer is it depends.    Not my favorite answer but it’s the truth.  I have a couple of companies that I own and are on different software systems.

When I work with a client, I have to find out what the needs are.   How big is the company?  How many people will be using it?   How tech savy are the users?  What information will you be needing?  Are the users mobile?  etc.

Most of my clients are new/small business.  Their primary concern is to take the drama out of the end of the year and tax information to their tax preparer.

Depending on what kind of business you are, your comfort level with cloud services and budget.  I create a plan to solve the year end problem.

As a small business owner you will also want to have information to grow your business.   I help with that as well.  With some good financial reports,  goals can be set and measured.

Future blog posts will highlight my favorite small business accounting software that will lessen the year end “trauma and drama”.

Please feel free to submit questions!

Stay tuned

Will be dark with blog posts for a bit

We will be dark with blog posts for a bit longer till tax season is complete on April 15th.   Thanks!!

Xero at year end

Just a quick update.

Ok so I’ve been using Xero accounting software for 7 months now for my bookkeeping practice. I’m still liking it. The bank feeds are great. If you set up bank rules, makes it really easy. I don’t think I had to hand enter any information in the last 7 months.

I use Workflowmax as my project management tool. I haven’t had any problems with the invoices and payments between the two systems.

Keep up the good work!

Get a bookkeeping system that you — and your business — can handle

In my work with small business owners, I emphasize the need for having a bookkeeping system that is functional and that is usable. And if that’s a pen and paper system, that’s okay. And I mean it, even though I’m a Quickbooks Certified Pro Advisor handling the finances of web design companies, small advertising agencies, and other businesses around La Canada, Pasadena, Glendale, and Los Angeles.

Bookkeeping like this may get you started on the right track

Just use a bookkeeping system and remember the most basic of functions — recording income and expense. If your income and the expenses you have as an entrepreneur or established small business owner are accurately recorded then you’re engaging in good bookkeeping practices.

I’d like you to read this article titled Recording Income and Expenses for Business by Don Simkovich who provides website solutions and article marketing for small business owners in southern California and nationally. He wrote this over a year ago and featured the Dome bookkeeping system. He recently updated it with my input.You can read the article and then click on Your Back Office Web.com to get a free spreadsheet template.

Dome won’t make your friends or competitors jealous, but it can help you take the basic steps in getting your business finances organized. Now, when you’re ready to move beyond a paper and pencil bookkeeping system give me a call for a free consultation. I can see if Quickbooks, Freshbooks, or another solution is right for you.

A website resource for entrepreneurs in greater Los Angeles

I’m introducing a website resource for entrepreneurs and small business owners around Los Angeles that provides a real-life perspective on all that’s involved in operating a business.

The site is called Running a Small Business.net. Currently, it primarily contains links to small business articles written by Don Simkovich, who has created the site. He’s looking to interview local small business owners and entrepreneurs on a variety of topics — from accounting and bookkeeping to marketing, sales, and customer relations.

The web site is segmented into services that Don and others offer, articles, and then there will be entrepreneurial profiles. Look under the Services page and you’ll notice he’s listed my site, Your Back Office Web.com

A video clip on Running a Small Business.n

Video clip on RunningaSmallBusiness.net

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and an overview of my accounting and bookkeeping services.

Browse many of the business articles available and contact Don via the site if you’d like to write a guest post or submit a request to be interviewed.

How to measure your business performance

Make sure your business is on track to make a profit and stay profitable by setting guidelines that you can use to measure your business performance.

1. Your mission statement — is your mission statement clear and does it reflect your current activities? Honestly assess the services you provide and the products you sell. Make sure those are in line with your mission statement?

2. Your accounting and bookkeeping system — does your system match your accounting and bookkeeping needs? If you’re able to keep receipts and all transactions in order, great! If not, consider hiring an accountant or bookkeeper to help with the day to day activities and the strategic planning activities. See the accounting services page on my website and let me know if you’d like a free consultation.

3. Your production — are you producing efficiently? I work with small web design companies and creative businesses need to know if the time they spend on projects is worth the total amount being charged. Manufacturing companies need to prevent equipment breakdowns and churn out products regularly.

4. Your marketing and sales — how much does it cost to obtain one customer? Are you going to existing customers and asking for referrals? If your marketing efforts are going along well then you should have a steady flow of revenue.

5. Your projections — are you aware of what may impact your industry in the coming year? If you’re prepared for changes, then you’re in good shape.

Each month, take a brief amount of time to evaluate your business against:

• Mission statement
• Accounting and bookkeeping
• Production
• Marketing and sales
• Projections

Investing a brief amount of time to evaluate your business performance can pay off by having a business that operates profitably.

Introducing my new web site Yourbackofficeweb.com

My new web site is now live, www.yourbackofficeweb.com, with details about my accounting and bookkeeping services around La Canada Flintridge, Glendale, Pasadena, and downtown Los Angeles. You can stay up-to-date with my blog there or here.

Some points of interest for your bookkeeping and accounting needs: my services section mentions my transaction-based pricing — clients only pay for the specific transactions they need in a given month. You can request a free spreadsheet template, too, and there are a few testimonials from clients.

You’ll notice on the About page, there is a list to various online articles where I offer accounting and bookkeeping advice.

Stop by and I’d love to hear from you. Since I do want to move to providing more of an interactive experience online, feel free to comment and tell us about your business — what you provide and the types of clients/customers you’re seeking.

Hiring experts, professionals, to help your business run profitably

Hiring experts may be a smart financial move for your business, even if the action simply looks like an expense on your books. Hiring an accountant like me can relieve the small business owner of handling the financial burden that comes with juggling books and productivity. The same can be said for hiring a Human Resource (HR) professional.

From Professional Employment companies to HR consultants and placement companies, spending the money can help an executive avoid hours sifting through resumes trying to determine the best fits for a company.

Claudia Shah of EE Connections, LLC in Glendale, California says those who use her agency and agencies like hers will save time and money.

“When a company used to advertise for a position they could get 5 – 10 resumes. But with unemployment in Los Angeles County reaching 12% companies who advertise for positions will now get 500 resumes,” she said.

“With that volume, how do you know how to screen the good candidates?”

She described how a person who was vice president of operations in a company eliminated the HR department. The VP thought she could handle the HR load.

Ms. Shah says what looks like a cost-savings may end up costing the company more money and take a qualified person away from what she does best.

“Why should an executive of a company spend 8 hours a day for 1 to 3 days when an outsourced staffing firm or other human resource firm can step in and handle the job in a more cost-effective manner?”

Consider outsourcing HR or hiring functions as a strategic cost of doing business. Outsourcing HR or hiring could save money in the long-term.

December Tax Time Tips (or DT3)

This is a round up of posts that can help you during December tax time organizing. My goal as an accountant working from La Canada to Glendale and Pasadena to downtown Los Angeles is to help small businesses get on the road to profitability.

Click here to read my previous post on 5 Steps to a Tax Return.

Planning is essential and that includes contingency planning for the emergencies in life where we have no control. The recent high winds sweeping through Pasadena and cities along the foothills is a reminder of that. Click here to read Make Back-Up Plans for Your Business and Business Finances.

Here is a link to the Internal Revenue Service small business information area online or go to IRS.gov, click on “businesses” and then “small businesses” for the information you need to file your 2011 taxes and prepare to keep accurate tax records for 2012.

 

Why transaction-based accounting is good for your business’ budget

If you wonder what accountants or bookkeepers do for the flat fee they're charging, then ask if they offer transaction-based pricing.

Your Back Office (YBO) provides transaction-based accounting for clients and that allows the client to accurately budget each month for our accounting and bookkeeping services.

Traditionally, accountants and bookkeepers bill hourly for their services.

However, YBO looks at your bank statement and then charges per each transaction on the statement. A transaction may be a check, invoice, bill or some other monetary activity. There is a client who signed up in this accounting model provided.

Someone asked me, “Jackie, how did you come up with transaction-based accounting for your clients?”

It seems logical and helps the client know what is being charged and why. It’s fair for both the client and the accountant or bookkeeper.

Finally, would you like a free spreadsheet template to use for your business bookkeeping? Sign up for my blog or email me at ybo@mindspring.com and I will be glad to send one to you.

The photo used in this post comes from sxc.hu.