Posts Tagged ‘accouting’

7 Surprising Time-Saving Accounting Automations

The never-ending debate about whether accountants and bookkeepers can be replaced is ongoing still. Of course, you’ll likely always need actual human professionals to weigh in and oversee many functions—but there is a growing list of tasks and processes that can be automated to save everyone time and money. We have compiled 7 of the top automations we encounter regularly in the hopes that we unveil at least a handful of things you may never have considered but now will not be able to live without. And if you’re automating something special that we didn’t cover, tell us in the comments!

  1. Import Bank Transactions

    Please, please, please tell us you are not manually entering any bank transactions in QuickBooks. A long time ago, we paid an Excel guru to create a really impressive workflow to automate this process for us—and it set us ahead of the game. But now, everyone can (and should) automatically import bank transactions into QuickBooks.

  2. Credit Card Statement Imports

    Bank transaction imports? Wait, that’s not all! Your credit card transactions can also automatically import to QuickBooks as well. (And other accounting platforms too of course). You may need to contact your credit card company for logon information to activate online service—but a simple phone call should get you the information you need in no time.

  3. Expense Report Submissions

    Whether you have one employee with expenses or 100, tracking down employees’ expense reports, verifying information, and managing receipts is a headache. All that paper pushing is a waste of everyone’s time—time that can be better spent on the company. Using an expense management application (like our friends at Tallie) can help you automate all of this—from taking photos of receipts in real-time to compiling and submitting expense reports from a mobile device, your employees will never have to rely on pen, paper and time again.

  4. Expense Report Sync To Accounting Software

    Did we mention that the expense management software doesn’t live in a bubble? It should integrate with your accounting software to pull your expense directly into your financial statements. And whether your reimbursements are done via ACH, live check or payroll, they can manage that too. Automation at its finest!

  5. Field Employee Time Tracking

    Nothing worse than having to collect and compile messy, difficult to read time cards from field employees. They’re busy, you’re busy, and yes, it is still way too much paper. Instead, time tracking applications with mobile interfaces (such as TSheets) allow field employees the ability to clock in from the field by either text message or mobile application. This supports real-time time tracking and funnels data directly into your general ledger system. No more delayed payroll because of missing time sheets.

  6. Generate Automatic Invoices

    If your business doesn’t get paid, nothing else matters. Therefore, any improvement you can make to generating and distributing invoices is a huge step towards improving your accounts receivable process. You can use any number of programs, from Bill.com to QuickBooks to PayPal to automatically generate new invoices, including on a recurring basis, and send directly to your clients.

  7. Invoice Approval Workflows

    There is nothing we dislike more than a pile of invoices waiting to be reviewed. It just seems so—unnecessary. Instead, you could automate the whole thing, review invoices, read back up documentation and approve payments in one interface. You can setup multiple approval workflows for different types of invoices or payments—for example, if a certain department needs to verify the expenses before the CEO will issue final approval—and you can do it all from any device with internet access. So much nicer than paper piles!

Want more information on how to improve your bookkeeping and accounting? We have you covered!

 

Thought Leadership from the Leaders in Virtual Accounting and Bookkeeping Services

Starting a small business requires making important financial decisions that help you plan and manage your business properly. Setting up a good chart of accounts is a large part of your business’s financial plan; it will pay dividends by allowing you to access accurate financial data with just a few clicks of a mouse, and it can be done in-house or hired out to bookkeeping services.

Setting up your chart of accounts

Your chart of accounts can be thought of as a file for all of your financial information; it lists your company’s account names and numbers and is step one in setting up your accounting system. Which accounts you decide to put in your chart of accounts depends upon your business; an inventory account is only needed for companies that sell products, and not for service businesses.

Keep the future in mind when setting up your accounts; you may not have a need for some accounts right now, but make sure your numbering system allows for lots of growth. As a new business owner, you may be the only employee; that may not always be the case. Adding payroll accounts now can keep your books clean and current later.

Use a four-digit numbering system for your chart of accounts and you will have plenty of blank numbers left for adding accounts as needed, and so that each transaction can be properly coded and added to the system. Additionally, you will be able to easily identify the type of account by its number if done correctly.

Account categories and common coding numbers

The chart of accounts will be used to journal all of the business’s transactions and there are five main categories of which accounts can belong: assets, liabilities, revenue, expenses, and owner’s equity. You are setting up your chart of accounts so that it will mirror the format of a company balance sheet.

Your asset category outlines what your company owns. Most computerized systems will start it at 1000 and list current assets first (cash, accounts receivable, inventory) and then fixed assets (buildings, equipment, vehicles), and a depreciation account that will show reductions in value of those assets.

Liabilities track what your company owes and the numbers should start at 2000 for ease of computing; add your current liabilities (accounts payable, sales tax, payroll tax, wages owed) first and then your long-term liabilities (such as mortgages.)

Owner’s equity is typically coded as a 3000 series of numbers and denotes the owner’s investment in the business. Later, you might have investors and need accounts for stock and retained earnings for profit that is reinvested into the company.

Revenue accounts are typically the 4000 series and show sales revenues and other income for your business. You typically need an account for discount, and one for sales returns and allowances as well. There will also be interest income, costs of goods sold, and accounts for shipping and other costs in this block of accounts.

Expenses are the final category and should be coded with numbers in the 5000 series; many people use the IRS Schedule C tax form to set up this category. Your bookkeeper and any outsourced accounting services or tax preparers will be happy about this, as it makes it much easier at tax time.

That is really all there is to it, though the task may at first seem daunting. This chart of accounts will keep your books clean and your data quick at hand whenever you need it. Outsourced bookkeeping services can help keep you on track and your expenses and other transactions coded perfectly if your chart of accounts is clean and easy to use.

 

Looking for more information on outsourcing accounting services? We can help you figure it all out.

 

7 Surprising Time-Saving Accounting Automations

The never-ending debate about whether accountants and bookkeepers can be replaced is ongoing still. Of course, you’ll likely always need actual human professionals to weigh in and oversee many functions—but there is a growing list of tasks and processes that can be automated to save everyone time and money. We have compiled 7 of the top automations we encounter regularly in the hopes that we unveil at least a handful of things you may never have considered but now will not be able to live without. And if you’re automating something special that we didn’t cover, tell us in the comments!

  1. Import Bank Transactions

    Please, please, please tell us you are not manually entering any bank transactions in QuickBooks. A long time ago, we paid an Excel guru to create a really impressive workflow to automate this process for us—and it set us ahead of the game. But now, everyone can (and should) automatically import bank transactions into QuickBooks.

  2. Credit Card Statement Imports

    Bank transaction imports? Wait, that’s not all! Your credit card transactions can also automatically import to QuickBooks as well. (And other accounting platforms too of course). You may need to contact your credit card company for logon information to activate online service—but a simple phone call should get you the information you need in no time.

  3. Expense Report Submissions

    Whether you have one employee with expenses or 100, tracking down employees’ expense reports, verifying information, and managing receipts is a headache. All that paper pushing is a waste of everyone’s time—time that can be better spent on the company. Using an expense management application (like our friends at Tallie) can help you automate all of this—from taking photos of receipts in real-time to compiling and submitting expense reports from a mobile device, your employees will never have to rely on pen, paper and time again.

  4. Expense Report Sync To Accounting Software

    Did we mention that the expense management software doesn’t live in a bubble? It should integrate with your accounting software to pull your expense directly into your financial statements. And whether your reimbursements are done via ACH, live check or payroll, they can manage that too. Automation at its finest!

  5. Field Employee Time Tracking

    Nothing worse than having to collect and compile messy, difficult to read time cards from field employees. They’re busy, you’re busy, and yes, it is still way too much paper. Instead, time tracking applications with mobile interfaces (such as TSheets) allow field employees the ability to clock in from the field by either text message or mobile application. This supports real-time time tracking and funnels data directly into your general ledger system. No more delayed payroll because of missing time sheets.

  6. Generate Automatic Invoices

    If your business doesn’t get paid, nothing else matters. Therefore, any improvement you can make to generating and distributing invoices is a huge step towards improving your accounts receivable process. You can use any number of programs, from Bill.com to QuickBooks to PayPal to automatically generate new invoices, including on a recurring basis, and send directly to your clients.

  7. Invoice Approval Workflows

    There is nothing we dislike more than a pile of invoices waiting to be reviewed. It just seems so—unnecessary. Instead, you could automate the whole thing, review invoices, read back up documentation and approve payments in one interface. You can setup multiple approval workflows for different types of invoices or payments—for example, if a certain department needs to verify the expenses before the CEO will issue final approval—and you can do it all from any device with internet access. So much nicer than paper piles!

Want more information on how to improve your bookkeeping and accounting? We have you covered!

 

Thought Leadership from the Leaders in Virtual Accounting and Bookkeeping Services

Starting a small business requires making important financial decisions that help you plan and manage your business properly. Setting up a good chart of accounts is a large part of your business’s financial plan; it will pay dividends by allowing you to access accurate financial data with just a few clicks of a mouse, and it can be done in-house or hired out to bookkeeping services.

Setting up your chart of accounts

Your chart of accounts can be thought of as a file for all of your financial information; it lists your company’s account names and numbers and is step one in setting up your accounting system. Which accounts you decide to put in your chart of accounts depends upon your business; an inventory account is only needed for companies that sell products, and not for service businesses.

Keep the future in mind when setting up your accounts; you may not have a need for some accounts right now, but make sure your numbering system allows for lots of growth. As a new business owner, you may be the only employee; that may not always be the case. Adding payroll accounts now can keep your books clean and current later.

Use a four-digit numbering system for your chart of accounts and you will have plenty of blank numbers left for adding accounts as needed, and so that each transaction can be properly coded and added to the system. Additionally, you will be able to easily identify the type of account by its number if done correctly.

Account categories and common coding numbers

The chart of accounts will be used to journal all of the business’s transactions and there are five main categories of which accounts can belong: assets, liabilities, revenue, expenses, and owner’s equity. You are setting up your chart of accounts so that it will mirror the format of a company balance sheet.

Your asset category outlines what your company owns. Most computerized systems will start it at 1000 and list current assets first (cash, accounts receivable, inventory) and then fixed assets (buildings, equipment, vehicles), and a depreciation account that will show reductions in value of those assets.

Liabilities track what your company owes and the numbers should start at 2000 for ease of computing; add your current liabilities (accounts payable, sales tax, payroll tax, wages owed) first and then your long-term liabilities (such as mortgages.)

Owner’s equity is typically coded as a 3000 series of numbers and denotes the owner’s investment in the business. Later, you might have investors and need accounts for stock and retained earnings for profit that is reinvested into the company.

Revenue accounts are typically the 4000 series and show sales revenues and other income for your business. You typically need an account for discount, and one for sales returns and allowances as well. There will also be interest income, costs of goods sold, and accounts for shipping and other costs in this block of accounts.

Expenses are the final category and should be coded with numbers in the 5000 series; many people use the IRS Schedule C tax form to set up this category. Your bookkeeper and any outsourced accounting services or tax preparers will be happy about this, as it makes it much easier at tax time.

That is really all there is to it, though the task may at first seem daunting. This chart of accounts will keep your books clean and your data quick at hand whenever you need it. Outsourced bookkeeping services can help keep you on track and your expenses and other transactions coded perfectly if your chart of accounts is clean and easy to use.

 

Looking for more information on outsourcing accounting services? We can help you figure it all out.

 

7 Surprising Time-Saving Accounting Automations

The never-ending debate about whether accountants and bookkeepers can be replaced is ongoing still. Of course, you’ll likely always need actual human professionals to weigh in and oversee many functions—but there is a growing list of tasks and processes that can be automated to save everyone time and money. We have compiled 7 of the top automations we encounter regularly in the hopes that we unveil at least a handful of things you may never have considered but now will not be able to live without. And if you’re automating something special that we didn’t cover, tell us in the comments!

  1. Import Bank Transactions

    Please, please, please tell us you are not manually entering any bank transactions in QuickBooks. A long time ago, we paid an Excel guru to create a really impressive workflow to automate this process for us—and it set us ahead of the game. But now, everyone can (and should) automatically import bank transactions into QuickBooks.

  2. Credit Card Statement Imports

    Bank transaction imports? Wait, that’s not all! Your credit card transactions can also automatically import to QuickBooks as well. (And other accounting platforms too of course). You may need to contact your credit card company for logon information to activate online service—but a simple phone call should get you the information you need in no time.

  3. Expense Report Submissions

    Whether you have one employee with expenses or 100, tracking down employees’ expense reports, verifying information, and managing receipts is a headache. All that paper pushing is a waste of everyone’s time—time that can be better spent on the company. Using an expense management application (like our friends at Tallie) can help you automate all of this—from taking photos of receipts in real-time to compiling and submitting expense reports from a mobile device, your employees will never have to rely on pen, paper and time again.

  4. Expense Report Sync To Accounting Software

    Did we mention that the expense management software doesn’t live in a bubble? It should integrate with your accounting software to pull your expense directly into your financial statements. And whether your reimbursements are done via ACH, live check or payroll, they can manage that too. Automation at its finest!

  5. Field Employee Time Tracking

    Nothing worse than having to collect and compile messy, difficult to read time cards from field employees. They’re busy, you’re busy, and yes, it is still way too much paper. Instead, time tracking applications with mobile interfaces (such as TSheets) allow field employees the ability to clock in from the field by either text message or mobile application. This supports real-time time tracking and funnels data directly into your general ledger system. No more delayed payroll because of missing time sheets.

  6. Generate Automatic Invoices

    If your business doesn’t get paid, nothing else matters. Therefore, any improvement you can make to generating and distributing invoices is a huge step towards improving your accounts receivable process. You can use any number of programs, from Bill.com to QuickBooks to PayPal to automatically generate new invoices, including on a recurring basis, and send directly to your clients.

  7. Invoice Approval Workflows

    There is nothing we dislike more than a pile of invoices waiting to be reviewed. It just seems so—unnecessary. Instead, you could automate the whole thing, review invoices, read back up documentation and approve payments in one interface. You can setup multiple approval workflows for different types of invoices or payments—for example, if a certain department needs to verify the expenses before the CEO will issue final approval—and you can do it all from any device with internet access. So much nicer than paper piles!

Want more information on how to improve your bookkeeping and accounting? We have you covered!

 

Thought Leadership from the Leaders in Virtual Accounting and Bookkeeping Services

Starting a small business requires making important financial decisions that help you plan and manage your business properly. Setting up a good chart of accounts is a large part of your business’s financial plan; it will pay dividends by allowing you to access accurate financial data with just a few clicks of a mouse, and it can be done in-house or hired out to bookkeeping services.

Setting up your chart of accounts

Your chart of accounts can be thought of as a file for all of your financial information; it lists your company’s account names and numbers and is step one in setting up your accounting system. Which accounts you decide to put in your chart of accounts depends upon your business; an inventory account is only needed for companies that sell products, and not for service businesses.

Keep the future in mind when setting up your accounts; you may not have a need for some accounts right now, but make sure your numbering system allows for lots of growth. As a new business owner, you may be the only employee; that may not always be the case. Adding payroll accounts now can keep your books clean and current later.

Use a four-digit numbering system for your chart of accounts and you will have plenty of blank numbers left for adding accounts as needed, and so that each transaction can be properly coded and added to the system. Additionally, you will be able to easily identify the type of account by its number if done correctly.

Account categories and common coding numbers

The chart of accounts will be used to journal all of the business’s transactions and there are five main categories of which accounts can belong: assets, liabilities, revenue, expenses, and owner’s equity. You are setting up your chart of accounts so that it will mirror the format of a company balance sheet.

Your asset category outlines what your company owns. Most computerized systems will start it at 1000 and list current assets first (cash, accounts receivable, inventory) and then fixed assets (buildings, equipment, vehicles), and a depreciation account that will show reductions in value of those assets.

Liabilities track what your company owes and the numbers should start at 2000 for ease of computing; add your current liabilities (accounts payable, sales tax, payroll tax, wages owed) first and then your long-term liabilities (such as mortgages.)

Owner’s equity is typically coded as a 3000 series of numbers and denotes the owner’s investment in the business. Later, you might have investors and need accounts for stock and retained earnings for profit that is reinvested into the company.

Revenue accounts are typically the 4000 series and show sales revenues and other income for your business. You typically need an account for discount, and one for sales returns and allowances as well. There will also be interest income, costs of goods sold, and accounts for shipping and other costs in this block of accounts.

Expenses are the final category and should be coded with numbers in the 5000 series; many people use the IRS Schedule C tax form to set up this category. Your bookkeeper and any outsourced accounting services or tax preparers will be happy about this, as it makes it much easier at tax time.

That is really all there is to it, though the task may at first seem daunting. This chart of accounts will keep your books clean and your data quick at hand whenever you need it. Outsourced bookkeeping services can help keep you on track and your expenses and other transactions coded perfectly if your chart of accounts is clean and easy to use.

 

Looking for more information on outsourcing accounting services? We can help you figure it all out.

 

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