Category Archives: cloud accounting

Looking for an organized way to manage your personal or business finances, and save time preparing various tax returns like Payroll, Sales Tax, and State and Federal Tax Returns?

Anyone, business or individual, can use QuickBooks for this purpose, and get organized with less paper and shoebox clutter.  We will customize the learning to You, whether a beginner or beyond. For the beginner we start with a few items like:

  • Easy Installation (The Wizard)
  • Homepage (The Roadmap)
  • Customize for your individual or business with preferences and settings
  • Create Invoices for Customers & Bills from Vendors
  • Basic Financial Reports

For those beyond, sessions will tailored to your specific questions.

Call  or Email Today for more information, or to get started with Your organized financial future. You work hard and deserve more freedom to choos how You use your time.

Small Business Accounting Pitfalls

There are so many things to keep in mind when you own a small business. Details ranging from inventory to order fulfillment are just the baseline concerns. If you’re a brick and mortar business, your overhead includes a lease, utilities, and maybe additional employees. If you run an online business, your overhead includes the cost of parking your domain somewhere, maybe an email management system. Regardless of whatever kind of business you own, though, you will have to make sure your books are in order.

Keep it separated.

It’s true that you will spend money out-of-pocket to start your business. You’ll also most likely spend out-of-pocket to bolster up your business in the first few years. Until you start turning a profit, pretty much everything you have will go into the business.

In spite of what seems like an endless flow of your personal cash into supporting your business, though, you should still keep your personal finances and your business finances separate. Creating a separate business checking account is a good way to compartmentalize and organize your business. Not only is good accounting policy, it’s also a way to help you mentally compartmentalize and look at your business in a critical and objective way.

Anyone who starts a business has to have passion and drive. Without it, there’s little point to making all the necessary sacrifices. But the truth is, it’s just not enough to be passionate about your business idea. You have to be able to look at the business and make decisions as objectively as possible.

Keeping it as separate from your personal finances as possible is a solid first step towards helping yourself do this.

Pay attention to the kind of business credit you get.

Depending on the kind of business you started, you might need seed money to build inventory, or to float your overhead for the first few months — or longer. There are all kinds of options and all kinds of institutions that might be able to help you., from banks to credit unions to even crowd sourcing. Be sure you pick the one that’s right for you; and, if you can, at all costs, try to avoid seeding your business using a credit card. If you find yourself unable to pay it back, it could seriously hurt your chances to access other kinds of funding.

Keep it organized.

Disorganized record keeping is the death knell of small business. If you’re forward thinking enough, you already set how to organize and store your important records. But even if you didn’t think about that in the beginning, it’s not too late to start now. Take the time to go back through your records and organize them. Yes, it’s a pain. Yes, it takes time, which is a commodity that’s already in short supply. Yes, it means some headaches, depending on how long you’ve put off going through and organizing your records.

But it will be worth it. And, it’s also a good lesson for you that will have more good returns than bad.

Update your books on a regular basis… more than just monthly.

You are the heart and soul of your business. But your books are the blood and bones. Keeping your books up-to-date isn’t the sexiest way to spend an evening; but it will give you the confidence you need to make objective decisions.

It may seem like updating your books monthly would be enough, and it may well be enough for a well-established business. If you’re just starting out, however, the ebb and flow of your business isn’t all that stable. The more you put your eyes on your books, the better chances you have to succeed later. It’s not enough to keep your receipts. Add them in weekly, or even bi-weekly. Keep an eye on your receivables and sales. If your business has heavy overhead, it’s even more important that you update your books regularly.

Don’t confuse sales with profits.

You’ve made a few sales, satisfied a few clients, and gotten a few more. Good for you! But if you’re just starting out, be sure to remember that sales aren’t profits. You don’t get to call it profit until after you take out business expenses – if for no other reason than to take pressure off your personal pocketbook – and quarterly or annual taxes.

It’s good to be passionate and important to be excited about your business. But don’t start trying to roll around in profits before they actually start rolling in.

Don’t be afraid to consult a professional.

It’s okay to admit you’re over your head in certain aspects of your business. That doesn’t mean you have to throw in the towel. A smart business owner knows it’s important to sometimes find someone who knows a little more about some aspect of the business. Because in the end, owning a successful business is as much about learning and evolving as it is relying on common sense.

Backing up your backups: Hemingway’s suitcase and cloud accounting

Record keeping is the key to any successful business. But it’s not just about crossing your t’s and dotting your i’s. It’s not just about making sure all your columns add up. With tax season coming, we will all be soon inundated with images of people trying to compile paper work dig through files and battle computer viruses that suspiciously only attack business and tax records.

But like any other business activity, record keeping is all about planning, which is why, if you haven’t looked into backing your data up in the cloud, now is as good a time as ever.

If you’re unfamiliar with cloud storage, it’s actually pretty simple. It’s a service that enables you to store records on remote servers. Unlike archival storage, having your data in the cloud means not only is it safe – because most cloud services use basic file encryption – but you can have access to it anywhere you are. This is especially helpful if your business requires you to travel. Rather than having to carry copies of client paperwork – which no one really does anymore anyway, I know – or having to rely solely on your laptop — you can streamline your business packing even further by saving copies of your files in the cloud.

Why should I store my important files in some cloud?

Let me answer this with a little anecdote. This story is primarily apocryphal… it gets told and retold, though no one ever seems to have a basis for it. It gets retold because the point of the story is sound regardless of whether it’s factually true.

Before Ernest Hemingway was a famous writer, he was a news stringer in Paris for American newspapers. Once he decided to leave Paris, he packed up all of his creative writing – years’ worth, including all of his carbon copies – in one suitcase. He packed up his wife and infant son, along with some clothes, a few possessions, and that one suitcase. They went down to the street to wait on a cab, but Hemingway ran back up because he forgot something – his favorite pen maybe.

When he made it back to the street, his wife greeted him with the news that one of their suitcases had been stolen. Which suitcase? Just the one that had all of his writing in it – years of work. All the drafts. All the carbon copies.  Gone.

Lucky for Hemingway, he embraced the setback and immediately after wrote The Sun Also Rises, the book that made his career.

My point is this: it’s unwise to keep all of your files and all of your copied, digital or otherwise, in a single place.  Computers, like anything else, can break and wear down. If you are a large business and can maintain your own servers, maybe you don’t think you need cloud storage. But if you are a small business or a sole proprietor, it’s important that you stay as lean and flexible as possible.

No-cost or low cost cloud storage could save you time, money. It can also help you communicate with clients and employees. As the account owner, you can allow or revoke access to partners, employees, and freelancers to suit your needs. There is no more effective way to transfer files too large for most email systems than a cloud service.

The cloud is great for accounting, too!

Stay connected to your business… from anywhere!

Many people who use cloud storage use it as a safe and affordable way to archive large files they don’t want to keep on local hard drives to improve computer performance. But did you know that as a small business owner you can also use cloud accounting to make your life a little easier?

Like with cloud based storage and file-sharing, you have several options. With Zoho, for example, not only can you maintain your books, but you can collaborate with clients directly via the client portal, pay out and get paid faster, track inventory and cash flow in real time, and be able to create the detailed kinds of reports any smart business owner needs.

Ok! So how do I go about getting started?

 There are many ways to go about doing it, and depending on your needs, cloud storage doesn’t have to add to your business’s bottom line. Zoho offers several plans starting at $9 per month. QuickBooks Accounting Software has cloud-based capabilities, but it comes at QuickBooks prices. Oracle’s NetSuite also gets good reviews, but you need to contact them through their website to get a tour and cost break down.

If you’re looking for something you can start using with low-cost and high value, though, something like Zoho is your best bet. You will thank yourself for making your business life go that much smoother.

Most cloud storage services – such as Google Docs, OneDrive (for Microsoft Office users), ICloud (predominately Apple users), and Dropbox, just to name a few – offer up to 5GB of storage for free. There are larger accounts for monthly or annual fees.

Signing up for an account is easy. Your User ID is your email address; your password can be as simple or as complex as you like it, within the parameters set by each site.

Please have a safe and happy New Year!

Give the Gift of Time for any occasion

Have you ever thought about giving the Gift of Time?  Everyone needs extra time from time to time, and a gift of a few hours could put you on their “favorites” list!

Contact  MJB’s Bookkeeping Solutions for information on purchasing a Gift Certificate for your Home or  Business Office, or someone you may know that could use an extra hand with bookkeeping, or getting ready for preparing taxes! Credible and tailored bookkeeping and accounting services serving individuals and companies, freeing them to do what they do best – creating value for their customers.

 

Top 9 Reasons For Not Using a Bookkeeper

  1. You have all the Clients you need.
  2. You like multi-tasking.
  3. There is no need to grow your business.
  4. Your account has never been overdrawn
  5. You keep your budget in your head.
  6. You don’t have the office space.
  7. You don’t want to pay employee taxes.
  8. You pay your CPA to reconcile 12 months of receipts and statements.
  9. The IRS will never audit your Business.

MJB’s Bookkeeping Solutions will partner with you to keep your CPA happy.  Contact Us Today.