Who doesn't feel pressed for time? Too much to do. Too many things to keep on top of. Too much to be aware of in tax regulations, etc. etc. etc. Sound familiar? Well, QuickBooks will save you time.
As a small business owner, you know what I am talking about. You have a lot of hats to wear and there are days when it feels like you are just going from one fire to the next - am I right?
Well, here's the big problem with that: You can't get ahead if you are always behind.
TIME - it is the ONE equalizer that everyone shares. We all get just 24 hours a day. So, even if your competition has more money to invest in their business or better staffing, they're still limited to the same 24 hours a day that you are. Therefore, it is crucial to the success of your business that you learn how to gain control over time and manage the productive use of it more wisely.
Isn't it also true that if you closely monitored where your time goes on a daily basis, probably right near the top of the list would be time spent on administrative tasks like invoicing your customers, paying the bills, handling employees and payroll and other bookkeeping and paper shuffling tasks.
Yet, it really does not need to be that way. The fact is that there are tools you should use - or use better - which will allow you to "take back" that non-productive time in operating your business and thus become more efficient and effective.
To better manage the financial tasks of your business, the tool I am referring to is QuickBooks. But, it is not just about installing QuickBooks software on your computer that is important. Rather, it is first gaining an understanding of the processes of work flow within your organization that is significant. Then, overlaying on that what information is required for accounting proceedures and tax filing compliance. Understanding that is crucial in effectively setting up QuickBooks or any other accounting software. For this reason, a needs analysis study is an important upfront process. Sometimes the best solution for your business is some combination of QuickBooks used in conjunction with other applications.
This is where my 25 years of experience in working with numerous businesses across many diverse industries setting up accounting information systems by studying work flow patterns and reporting needs can also help you gain efficiencies in your business.
Actually, the technical aspects related to setting up a business accounting system are really less about the software application technology itself and much more about having expertise in areas such as:
1) Knowledge of the industry and accepted trade practices and proceedures
2) The entity structure.
3) Knowlege of specific federal, state and local tax forms that will need to be completed so that the software will be setup to capture and report financial information specific to those forms.
4) Special tax reporting considerations such as foreign source income and foreign taxes paid.
5) Differentiation between employees and contractors.
6) Accounting basis - cash or accrual.
7) Financial statement presentation requirements.
8) Inventory costing and flow processes, especially as they relate to manufacturing companies engaged in job or process costing, use of overhead formulas etc.
9) Information needed by management for profit centers or product profitability analysis.
10) Businesses with multiple state activities in order to satisfy nexus filing requirements.
Although anyone of these circumstances if they relate to your business could require additional time and effort, more often than not, the reason that is the case is because your financial accounting system is not appropriately optimized to capture the needed information in the right way. Improve this process, and you will indeed find more time in your day.