You're finally at the point where your employees get to travel. But getting reimbursed for travel and expenses seems to have an awful lot of rules. Learn everything you need to know about what's allowed and how much you're entitled to per GSA Per Diem reimbursements.Read More
Thought Leadership from the Leaders in Virtual Accounting and Bookkeeping Services
Sweeping disruption of the accounting industry is imminent. Massive technological change and shifting consumer trends demand a new approach to how the industry creates value for clients. Some services are more vulnerable to disruption than others. For example, basic transactional accounting services have already been largely automated (though adoption has varied significantly across types of small businesses). Compliance will be increasingly automated going forward, and limited advisory services will follow that trend.Read More
We regularly explain and blog about the many benefits of outsourcing accounting services. From removing from the need to be an expert outside of your core competencies to leveraging the collective knowledge base of a group of top professionals, there are many reasons to consider outsourcing. However, we also acknowledge that outsourcing isn’t the only solution—and it isn’t just “for every company”. So if you are on the fence about whether or not to outsource your accounting, bookkeeping or controller functions, consider the following reasons you might want to keep them in house.Read More
As an independent contractor, it is important to make sure your books are in order. One of the main reasons for this is to make your tax reporting a lot easier and get you back to work as quickly as possible. As an independent contractor, you are responsible for paying quarterly income taxes--which can be an arduous process if you don't know what you're doing. Knowing how much you are paying out and bringing in will assist in getting your taxes paid in a timely and accurate manner and reduce the amount of time spent with your bookkeeper or accountant. Having an accounting system in place will increase productivity and help your business run efficiently. By keeping track of bills, receipts, your net profit and gross profit, and by maintaining a clean balance sheet, you can keep an eye on your money without taking too much time from your day job.
The ability to sort accounting transactions by user-defined divisions and classes in QuickBooks is a great way to track and analyze what areas of your business are the most profitable. Unfortunately, many businesses and bookkeepers aren’t taking full advantage of this option because they don’t clearly understand the difference between divisions and classes and how to use them. Hopefully the following examples will clear up some of the confusion.
Using Divisions in QuickBooks
If you want your accounting or outsourced bookkeeping services to provide separate profit and loss reports for different areas of your business, creating divisions will allow them to do that. Here are examples of divisions setups in QuickBooks for different industry models:
- Accounting Services: Payroll, Accounts Payable, Billing, Full Service
- Mechanical Contractor: Residential Service, Commercial Service, New Construction
- Construction Contractor: Bathrooms, Kitchens, Whole House, Repairs
As you can see with the mechanical contractor example, how you choose to divide your services is totally up to you and may be different from one business to another. By selecting a division when creating an invoice, the revenue from the invoice will be appropriately tagged for that division. Select a division when entering a vendor bill to log costs of materials or services specific to that task. With this process in place, a business can then run Division Profit & Loss Reports, showing the income, costs and gross profit on distinct roles within the company.Read More
Most entrepreneurs have no problem coming up with big ideas for how to start a new business. Despite this creative spirit, studies show that nearly 90 percent of all startups fail within the first five years. For many of these entrepreneurs, their problem is not their ideas or even the goods or services they offer. Instead, it all boils down to how they handle their finances. After all, without a stable financial footing, even the best businesses will soon find their demise. Here are the top five accounting mistakes entrepreneurs make when starting a business.Read More