Accounting Mistakes in Startups That You Need to Avoid

Accounting Mistakes in Startups That You Need to Avoid

A firm grasp on account management of your new business significantly impacts its growth and success. Failing to understand the dos and don’ts of business accounting can hamper profits and incur high costs. Accounting Mistakes in Startups.

According to a report, only one-third of American small businesses employ an expert bookkeeper. The same report revealed that almost 66% of the business owners have no plans to hire one in the near future.

A vast majority of new business owners prefer to handle their accounts themselves, which is completely fine as long as they know how to go about it. However, many of them attempt to test and trial methods to see which works best without professional help. This leads to erroneous calculations and ineffective bookkeeping.

Without a sound accounting system, foolproof compliance, and disciplined bookkeeping, driving a small business can be challenging.

Therefore, be aware of these four common startup business accounting mistakes when managing your venture’s books and transactions.

Accounting analysis on a laptop screen

  1. Failure to Keep Personal and Business Accounts Separate
    A primary mistake many small business owners make is mixing personal and professional accounts. They often blur the line between the two types of finances when their business sets its foot in the market.

For example, you head to a supermarket to buy office supplies on your business’s account. But you suddenly see some grocery items on sale, and you pop some of those in your basket.

Activities like these can lead to a drastic gap between your investments and revenue, making it hard to keep track of your business finances.

According to Clutch, more than a quarter of the small business owners don’t have a separate bank account for their business transactions, and that’s not a good move. Mixing the two finances can cause problems when you apply for a business loan or a credit line since you’re then unable to provide an accurate financial snapshot of your earnings and expenditure.

If you’re also using a personal account to carry out business purchases and payments, head to the bank today and apply for a business account today.

  1. Relying on Cash-Based Accounting
    Although cash-based accounting is a traditional way of handling and managing cashflows, it results in an uneven and erroneous bookkeeping record. You might skip or duplicate a transaction when counting your finances.

Moreover, if you’re dealing with multiple business vendors, you might not be able to keep track of all the receipts and invoices of their record. Cash-based accounting is a short-term and ineffective solution for your business needs. It doesn’t take due diligence and track-recording into account and leads to fluctuations in business inflows and outflows.

While cash-based accounting might seem easy-to-manage and straightforward, consider implementing a system that has the potential to grow. A fully integrated, seamless accounting software like QuickBooks can be your perfect accounting partner! – Read more

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How to Leverage QuickBooks Cloud To Streamline Your Accounting practice?

How to Leverage QuickBooks Cloud To Streamline Your Accounting practice?

In the time of the COVID-19 pandemic, when businesses are trying their best to survive and make most of the situation, a major change has come in all organizations’ operation methods. More and more businesses are going remote and trying to work digitally. 

Accounting practices are also in this category, looking for ways to go digital and streamlining their operations. QuickBooks is one of the tools available for businesses to manage their financial data with advanced industry-specific features. However, when hosted on the local system, it lacks the features of remote access and recovery in case of any calamity. 

When combined with cloud capabilities, QuickBooks can add extended features to QB, including remote access, efficient file sharing, better security, and more.

Here is how you can leverage QuickBooks Cloud to streamline your accounting practice.

1. Enhanced Security

Since for any accounting practice, financial data is sensitive for the business. Hence, they are generally cautious about sharing the same over the network. With QuickBooks cloud, security is not a concern to be worried about anymore. 

QuickBooks Hosting has the latest cybersecurity measures that are updated regularly and managed by cybersecurity experts. The QuickBooks providers know that it is imperative that the client’s financial data is kept secure and ensures regular security patch updates, network monitoring, data encryption, ransomware prevention, and more. 

2. Improved Network Quality

Traditionally, in accounting practices, multiple personal computers are all connected to a local server for data storage.  Generally, these connections are setup using LAN or WAN. However, these connections are not completely reliable and prone to connectivity issues. 

With QuickBooks Cloud, all components can be connected to each other via cloud with access to the financial data from any location over the internet. This also means that there is no need for equipment, computers, and the server to be collocated in an office space. This is especially relevant in the new normal when more and more businesses and workers are opting for work-from-home solutions. 

3. Smooth Migration

Making the transition to a cloud server is a tedious task, even more so if it involves financial data. The QuickBooks Cloud providers make sure that the transition of financial data is smooth and stress-free. In addition, transparency is maintained with the authorized personnel of your business. 

The providers even provide a transition time when the business accounting practice is assimilated with the new environment. All concerns arising within this time are assuaged, and issues are resolved. With a quick turnaround time for implementation on QuickBooks Cloud, accounting practice can be readily adopted and implemented. 

4. Remove Technology Glitches

Ina traditionally maintained system on office premises, it is a daunting task to maintain the software updates to the same version on different personal systems. Also, as the technology grows, software requirements also change, requiring updates in system hardware, affecting the organization’s technology budget. Additionally, personal systems are prone to virus attacks, leading to constant and continuous monitoring of personal systems. These tasks may require a dedicated IT department at the office premises. 

With QuickBooks Cloud implementation, the software upgrades and security are managed by the cloud service provider, making sure that the same version of the software is available to all the personnel in the organization and security patches are installed simultaneously. It also helps in reducing the cost of the IT department at office premises.

5. Better Data Recovery

In traditional accounting practice, data backups are taken on external hard drives that need to be secured and stored at a location, either same or different. 

QuickBooks Cloud makes it easy to maintain the backup of the financial data, thus making sure that data is available readily in case of disaster recovery. With QuickBooks cloud, you do not have to worry about maintaining external hard disks. The cloud service provider is responsible for managing the disaster backups and restoring the same.

6. Easy Data Management

With traditional accounting systems, the financial data is pulled in and out of the system using spreadsheets. Analyzing these files is a time-consuming task and sharing the files over email and/or file-sharing systems is a nightmare. 

QuickBooks Cloud provides the feature of sharing the files to the authorized staff and clients and allows multiple people to work on the files simultaneously. QuickBooks cloud also maintains the different versions of the files and is available for the review of the updates, which is a nightmare with the traditional accounting system.

7. Increased Financial Profits

With the reduced capital expenses and the cost of hardware maintenance at the office premises in the case of QuickBooks Cloud, businesses can increase profits. Your business accounting practice can select from a fixed payment plan provided by QuickBooks Cloud providers in place of fluctuating costs for on-premises deployment. 

Also, with real-time financial data available on QuickBooks Cloud, accessed and updated from different locations of the organization, reviewing and making a course correction is a reality, thus saving on expenses and increasing profits. 

QuickBooks Cloud storage of financial data allows your firm to plan better financial strategies that help in reducing the expenses and hence an increase in the organization’s profit.

8. Organized Process

With traditional accounting systems, getting real-time updates was not a possibility except when the business only had the office at one location. With businesses expanding to different geographical locations, QuickBooks Cloud provides an opportunity to connect these locations and get real-time updates of the financial data, providing the management a hang of the finances. Furthermore, QuickBooks Cloud provides reports for the clients that can be customized as per their requirements, thus making clients happy. A happy client makes a business successful.

QuickBooks Cloud makes financial data management easy and reliable. It also reduces the cost of the workforce required as financial data is not maintained on business premises. QuickBooks Cloud provides a path to success to businesses in a world that is going digital in the new normal. 

Author-Bio: Sharad Acharya is a technical writer at Ace Cloud Hosting. He loves to research the latest technologies and has written articles on the cloud, virtualization, and security. You can follow him on FacebookTwitterGoogle+, and LinkedIn.  

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9 Reasons Your Business Should Deploy QuickBooks Hosting in Tax Season 2021

9 Reasons Your Business Should Deploy QuickBooks Hosting in Tax Season 2021 - SaaS -

QuickBooks Hosting in Tax Season 2021. Accounting and finance management is the core operation for any organization that requires precise calculations and computations. Even a small mistake can create havoc in the financial system of any organization, especially during the tax season.

One way to achieve an error-free accounting process is to opt for advanced accounting software such as QuickBooks. Bundled with cloud hosting, the tax software provides a complete solution for organizations looking to connect across the globe at any time. 

Let’s look into the advantages of QuickBooks hosting, which may help your organization to make a sound decision for the coming tax season 2021.

1. Data Protection

Financial data for the clients is crucial for any firm or CPA. With so many hackers operating out, losing the data is a significant concern and causes distrust with the clients, which is not good news for any organization. Hence, data protection is one thing that organizations have a high priority, especially during the tax season 2021. 

In the case of QuickBooks hosting, the service providers deploy advanced features like multi-factor authentication, an anti-malware program, access controls, and end-to-end encryption that ensure data security at the highest level. Security is maintained at the physical, network, and end-point levels by the QB hosting provider.

2. Collaborative and Precise Accounting for Tax Season 2021.

As the business operations are going global, multiple user collaboration has become essential. Working collaboratively will help increase the accuracy of the accounting data and bring the highest precision in the financial process in tax season 2021. 

QuickBooks hosting brings the advantage of multiple user access. Accountants can log into QuickBooks from any location across the globe and collaborate with other users to make sure the financial data is accurate and precise results are obtained without any lag in real-time. This helps in taking corrective action required to make sure that the numbers are correct.

3. Better Performance

Organizations generally raise the risk for performance where the system’s downtime exceeds the threshold value set by the organization—more downtime of the system, more losses incurred by the organizations. However, in the tax season, these losses cost even more.

QuickBooks hosting providers guarantee an uptime of 99.999% to overcome the performance risk, which results in a few minutes of downtime per year. With high uptime, QuickBooks provides better connectivity and hence better operations and better results.

4. Virtual Office

As the world is dealing with a pandemic, the traditional office setup does not work. The organizations are looking for options that allow CPAs to work remotely from any place, be it a home or a beach. Since tax season is a busy season for accounting firms and CPAs, they require flexibility in time and connectivity. 

QuickBooks hosting allows the users to connect anywhere, providing the same desktop user interface setup on the cloud. Small firms and CPAs can take advantage of QuickBooks hosting to set up a virtual office available around the clock.

5. Dedicated Technical Support

Organizations opting for cloud-hosted accounting in the tax season look for technical support, which is available 24/7 by an experienced support team. 

The QuickBooks hosting providers understand the clients’ requirements and make sure that the experienced support staff is available round-the-clock to resolve the client’s queries at the earliest. It provides the customer an out-of-the-world experience. A happy client ensures the success of the organization.

6. System Backup

With QuickBooks hosting, organizations don’t have to worry about the data backup system. Both system backup and maintenance are done by QuickBooks hosting providers, taking off the organization’s IT team’s pressure. 

The system backup works as a disaster recovery system in case of any natural calamity, ensuring the recovery and availability of the data at the earliest and resuming the business. It is next to impossible in the traditional system where IT teams need to do every operation manually. 

7. Customizable Solution

In this tax season, organizations are looking for accounting solutions that help them customize the hosting solution as per their requirement. 

QuickBooks hosting allows organizations to achieve the same. With a shorter tax season 2021, the servers can be scaled up, and when the season is over, the servers can be scaled down. The instant scaling of the servers helps the organization manage the resources, time, and money efficiently. 

8. Green Environment

As the world is going green, QuickBooks hosting helps organizations contribute to the environment and create a paperless environment. 

Since QuickBooks hosting provides a central database on the cloud, accessible to all the authorized staff, a paper trail requirement for the financial activities becomes redundant, thus creating a green environment. 

9. Low IT Infrastructure Cost

For a brief tax season like 2021, setting up the servers at office premises does not make sense as it may result in a huge infrastructure cost and investment in an IT team that is an expert in server management. 

QuickBooks hosting allows you to save on the IT team’s infrastructure costs and investment as tasks are taken care of by the service provider. Organizations don’t have to worry about the infrastructure and IT team’s redundancy once the tax season is over. 

Final Note on QuickBooks Hosting in Tax Season 2021.

With all the added advantages mentioned above, QuickBooks hosting is coming up as the first choice of the small firms and CPAs looking for cloud-hosted accounting software. Try QuickBooks hosting this tax season to get all the features of QB Desktop coupled with cloud capabilities. 

Author-Bio: Sharad Acharya is a technical writer at Ace Cloud Hosting. He loves to research the latest technologies and has written articles on the cloud, virtualization, and security. You can follow him on FacebookTwitterGoogle+, and LinkedIn.  

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