Accounting Systems: How should I keep track of the income and expenses for my business?
One of the most common questions from our clients is: How should I keep track of the income and expenses for my business?
Every business is unique and the accounting system for your business should be appropriate for your size and operations. A small business that has a limited number of transactions each month may not need any formal type of accounting system. All of their needs may be accomplished simply by recording all of the transactions in a check register during the year to be periodically or annually summarized. We always recommend that a business have a separate checking account for all business transactions. When separate accounts are maintained, it makes summarizing business transactions easier and more efficient because personal transactions have not been combined with business transactions, reducing the potential for inaccurate reporting.
Many of our clients depend on us to assist them in selecting an accounting system that is efficient and cost effective while meeting their accounting, tax preparation and reporting needs. Often clients want or need a computerized accounting package.
Reasons for utilizing accounting software include:
- The volume of transactions
- Invoicing customers, posting payments and tracking receivable balances
- Tracking inventory balances
- Payroll processing
- Collecting and remitting sales tax
- Financial reporting, including: profit and loss statements, balance sheets, budget vs. actual reports
- Managing your business
There are many accounting packages available. The most commonly used are QuickBooks, Peachtree, FreshBooks and Wave. Many of these packages have online versions as well as desktop versions. There are functionality differences between desktop versions and online versions of the same software. The desktop versions allow for detailed reporting and customization, while the online versions allow the flexibility of the being able to use the software remotely and on tablets and other handheld devices.
Whether onsite or in our office, we assist many of our clients by reviewing their financial transactions, reconciling accounts as needed and providing training tailored to their needs.
If you would like more information regarding the accounting services and products we offer, please contact our office at 704-786-0171 to schedule a consultation with David or Ladoska and one of our experienced bookkeepers, Shelia Kellis or Zeena Upchurch. We can evaluate your existing accounting system for efficiency and accuracy and make recommendations on how you can improve your system.
