Reasons Why You Should Use Accounting Software

Accounting software is, perhaps, the number one requirement of all businesses, big or small. However, it is mind-boggling to see that many businesses, especially SMEs avoid  leverage accounting systems—such as QuickBooks, Xero, App Folio, Sage and many others to streamline and automate their day-to-day accounting needs. .

We believe automating business processes is crucial for growing a business. It reduces the hassle and allows the owners to focus their energy on growing their business. This is why our team is committed to educating businesses and working with them to find the right accounting software for their needs.

If you’re skeptical and wondering why you need to invest in a good accounting software, then here are the top reasons:

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Consistency

The biggest reason why a business—especially a small one—should be using an accounting software is to streamline their bookkeeping. When it comes to managing your accounts, there is no room for mistakes (classifying accounts receivable as cash). It has to be done by the book. A small mistake can lead to wasting tons of hours going through all your records.

Additionally, accounting software is faster. With the right software in place, you can be sure that you won’t face consistency issues in your books anymore!

Simplified Reporting

Gone are the days when you—or your staff—needed to spend a lot of time generating accounting reports. From extracting data to analyzing numbers, to proper formatting to generation of graphs and statistics—all of these can be performed quickly with an accounting software.

Additionally, accounting reports can be generated in a matter seconds, with just a few clicks—if accounting software has been employed. This means you gain deeper insights into your business financials without worrying about the time it will take to compile a report on Excel or the accuracy of the reported data.

Conservation of Time and Money

For a business owner time and money are everything, right? We often hear owners worrying that “I didn’t get the time today to visit this vendor! I didn’t know we were short on cash to order the supplies!” among other things. However, accounting software has got a thing or two to say about that!

Accounting software can do wonders when it comes to serving a business owner’s time and money. How? A business owner will neither need to spend extensive hours in managing his books nor will they need to pay someone else to do it for them. There can be no better deal!

Easier Audits

One of the biggest reasons for the problems in audits is human error. While erring is a part of being human, the nuisance that human errors cause in audits make auditors want to pull their hair out. Why wouldn’t it? Human errors—especially the minor ones—are tough to detect and even tougher to take care of owing to their impacts on multiple financial statements. With the use of accounting software, however, you reduce the chances of such errors. And even if an error is made in data entry, it can easily be corrected in one place without any concern for additional adjustments.

Concluding Remarks

These reasons are, merely, the tip of the iceberg when it comes to the advantages that accounting software has got to offer. There is no reason for businessmen, in this day and age, to not automate their accounting with accounting systems.

Are you considering getting accounting software for your SME but don’t know which one will cater to your needs? Don’t fret, for SKB Accounting has got your back. When it comes to accounting software, we will provide you all of the advice that you will ever need!

5 tips on how you can be more organized

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One of the biggest challenges in the life of the chaotic small business owner is Personal Organization.

5 tips on how you can be more organized.

Tip #1 :-  Make sure that you have one physical inbox. Now, what you do with that one inbox. That is the place where everything that is unresolved. Everything that is out of place put it in the box, now in the beginning you might need a very big box. This tip will set you up very nicely for the last two tips, I am going to show you.

Tip #2 :-  Get a Mobile inbox. You are going to be a way from the office time to time, and people gonna hand you cards and brochures whatever we need to have one place where all of those things go.  Then you get back to the office what you do with it, dump everything from the mobile inbox into the physical inbox.

Tip #3 :-  Create Homes. I teach my clients this phrase, everything has a home and no visitors allowed, a home is something that has walls around that create natural barrier between the things that is supposed to be inside of it and anything else. If you have clearly define homes when it comes time to put things away, you know exactly where those go if you need to even use a label for those homes.

Tip #4 :-  Process Scheduling. In particular you have a set processing time that you refer to go to that every single week. How much you spend processing, I recommend 5 hours a week and during that 5 hours, you going to take each item in the inbox and decide that what you are going to do with it, when you are going to do it, and where is it home? What-When-Where.

Tip #5 :- Processing. It is so important, I am emphasizing it twice, If you have that regular Schedule you stick to that regular schedule. You are going to be able to stay on top of everything. But what most of Entrepreneur do is they make that processing decision constantly throughout the day. The doing a little bit here in a little bit there’s constant over the place, which chops up your day instead have regular said time.

Process!  Process!  Process!

Start Accounting and Bookkeeping for as low as $150 per month

Tax Tips for Students with a Summer Job

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Is your child a student with a summer job? Here’s what you should know about the income your child earns over the summer.

  1. All taxpayers fill out a W-4 when starting a new job. This form is used by employers to determine the amount of tax that will be withheld from your paycheck. Taxpayers with multiple summer jobs will want to make sure all their employers are withholding an adequate amount of taxes to cover their total income tax liability. If you have any questions about whether your child’s withholding is correct, please call our office.
  2. Whether your child is working as a waiter or a camp counselor, he or she may receive tips as part of their summer income. All tip income is taxable and is therefore, subject to federal income tax.
  3. Many students do odd jobs over the summer to make extra cash. If this is your child’s situation, keep in mind that earnings received from self-employment are also subject to income tax. This includes income from odd jobs such as babysitting and lawn mowing.
  4. If your child has net earnings of $400 or more from self-employment, he or she also has to pay self-employment tax. (Church employee income of $108.28 or more must also pay.) This tax pays for benefits under the Social Security system. Social Security and Medicare benefits are available to individuals who are self-employed just as they are to wage earners who have Social Security tax and Medicare tax withheld from their wages. The self-employment tax is figured on Form 1040, Schedule SE.
  5. Subsistence allowances paid to ROTC students participating in advanced training are not taxable. However, active duty pay–such as pay received during summer advanced camp–is taxable.
  6. Special rules apply to services performed as a newspaper carrier or distributor. As direct seller, your child is treated as being self-employed for federal tax purposes if the following conditions are met:
    • Your child is in the business of delivering newspapers.
    • All pay for these services directly relates to sales rather than to the number of hours worked.
    • Delivery services are performed under a written contract which states that your child will not be treated as an employee for federal tax purposes.
  7. Generally however, newspaper carriers or distributors under age 18 are not subject to self-employment tax.

A summer work schedule is sometimes a patchwork of odd jobs, which makes for confusion come tax time. Contact the office if you have any questions at all about income your child earned this summer season.