Small business accounting plays a crucial role in deciding the success of a business enterprise. Financial matters related to small businesses are a little different from that of the large business firms. So, if you wish to administer your business in a proper way, understating of these accounting matters are mandatory. Optimum utilization of funds, correct business activities, right credit allocation and timely evaluation of competitors along with effective decision making are all necessary for small business accounting professionals.There are primarily three main financial measures that are involved in the management of accounting details of a small business. This includes cash flow statement, profit and less account and the balance sheet.The balance sheet presents the worth of the business and lists the liabilities and assets of the small business throughout the year. The profit earned or the loss incurred by the business is all calculated by the profit and less account. This statement shows the performance of the business and covers either the quarterly report or the monthly report.The cash flow statement is prepared so as to know about the cash balances of the small business firm in future. This statement predicts about the cash requirements of the small business in future.Usually, there are two methods that can be utilized for small business accounting. The first method is the cash basis method that involves identification of cash receipts as the expenses and income and bill payments are seen as expenses. This method is used by most small business owners as it uncomplicated and can be easily implemented.Accrual method is the second method to maintain accounting books in small business. In this method, revenue that is entered in the account books does not rely on the real cash collection. If a sale is made, the product is recorded in the books as “accounts receivable”, no matter if the amount has been paid by the customer or not. Further, when the amount is received from the customer, “accounts receivable” turns into cash and registered into the accounting books. Similarly, if there is any expenditure that is incurred by a small business, it is written to be an expense in the book of accounts, even the bill is paid after a long span of time. Usually, small business that deals in manufacturing businesses, employ this accrual method to maintain their accounting books.There are also several accounting software that are especially designed for small businesses and their requirements. Generating reports, storage data and performing calculations and managing other such accounting transactions can easily be sorted out with the help of these software. Using these software makes the work of accountants of these small firms not only easily manageable but also this is a very cost-effective option.Small business owners may also seek assistance from accounting outsourcing firm for the proper management of their accounts and to hire proficient accounting services at affordable rates. So, select the small business accounting firm that suits your budget as well as requirements and lessen the burden of your accounting tasks as early as possible.
Managing a small business is a challenge. With resource constraints, it can often boil down to a choice between saving costs in the short-term and investing in long-term growth through sound management practices. However, it need not always be so. Small business software like document management systems can help your small office function efficiently, leading to cost savings as well as growth in the long run – something every small business aims to achieve.Managing information effectively key to growthCommunicating information is the lifeline of any office. Most written communication takes the form of documents. Starting out as a small business does not mean you will stay small forever. As your sales and revenue grow, you will plow back some of your profits to expand your small business. You will want to acquire new customers, invest in better systems to manage existing customers and maybe even explore a new line of business. Whichever path you take, there will be an exponential growth in the volume of documents you manage. If you can get a handle on those paper and electronic documents, you will get more time to focus on your core tasks. Here are 5 ways in which using document management software can help you to improve the efficiency of your small business…1. Built-in scanning capabilities help you get paper free quicklyAs your business grows and the number of paper documents you process increases, you will feel the need to digitize your business processes. The first step is to scan all archived paper documents and new paper documents that you create. Though you may want to create new documents in an electronic format, there are situations where you may have to create or process a document in paper form. You can scan and save it in a digital format though. A good document management software program has built-in scanning features that help you scan documents individually as well as in batches, and save them to pre-specified folders. This will make sure you can access those files on your screen in a snap!2. Multi-user access enables you to get work done fasterAs a small business owner or employee, you may not be the only one working in your office. Your fellow workers too may process the same documents as you do, but their job role might differ from yours. To solve the problem of having to store multiple copies of the same documents on different systems, typical document management software stores documents in a centralized database, yet allows document sharing among users. So though the software is installed on everyone’s computer, the documents are not created in multiple copies. This helps save precious space while also allowing you to work on a document that is not stored on your system.3. Email, Fax and Print features for improved internal and external communicationThere are a few small business software programs in the market that allow you to store emails from your multiple accounts, using POP3 email capture. This means you do not need to sign in to your various email accounts to view your mails. To refer to those emails containing the information you need, you simply need fall back on your document management software. If you need to fax a document, you can do that too, right from within the application. You can even print documents from within the program even though they are not stored on your computer!4. Folder structure retention during import saves time and effortCertain software applications for managing documents allow you to import your existing folder structure at one go and retain it. This could mean a saving of several days’ worth of time and effort recreating the folders and sub folders; and checking if documents have been assigned to the correct folder.5. User-friendly Interface helps you get productive in hoursMost of us have used Microsoft Outlook at some point or another. As of now, this is undoubtedly the best interface for routine office communication that you can get. The folder menu fits nicely in the left sidebar with the main menu resting at the top of your screen. There are document management software programs available with an MS Outlook type interface. This means when you install it on your system, you can start working right away – no need to learn how to navigate the software. You get productive from Day 1 itself!When a small business software has features that help you manage key tasks efficiently and with ease, you can rest assured that adopting it will help you achieve your business goals and propel your organization towards growth in the long-term.