How to Do Small Business Accounting for Dummies
Do you want to start your own business and are you looking for a practical solution for invoicing, quotes and keeping track of your accounts? The solution surely goes through doing online accounting, that is to say, subscribing to online software to manage all the management of your future activity.
When we talk about software online, we are not talking about software to download to the computer. The program is hosted on online servers. Each user, if there are several of you, can, therefore, use the software online at any location, on any medium (computer, phone, tablet, etc.) as long as he has an internet connection.
Today you can find a lot of software online that offers accounting, billing, quotes, bank reconciliations, payroll management, and purchase monitoring. Overview of this increasingly widespread practice with our partner QuickBooks.
Who can do Small Business Accounting
The management software we are talking about is mainly aimed at VSEs, SMEs and self-employed people. Larger companies will turn to software that will offer almost their entire process.
Everyone can, therefore, do their accounting online. It is even recommended when starting an activity.
More specialized companies will focus on more specific software that meets the needs of their trades.
Small Business Accounting for Dummies
Save time
Saving time is the most important need for an entrepreneur. You must optimize your time in order to balance your work but also to generate your turnover. In these calculations, management tasks are often the bane because they take time and do not generate direct sales. However, they are essential to your activity.
Using online accounting software can save a lot of time for an entrepreneur.
Avoid mistakes
In addition to saving time, you will avoid many mistakes that are always stressful, especially when starting your business.
In accounting software, the legal notices are pre-filled. In addition, the software notifies you when a supporting document is missing. It is the ideal assistant when you are not comfortable with accounting.
With QuickBooks, you can easily edit professional invoices just like your business
Keep a clear view of the financial situation
Online accounting software allows you to monitor your financial situation, turnover, collection, disbursement, etc. in real-time. Viewing dashboards to monitor your activity is essential for making good decisions and managing your activity as effectively as possible.
The dashboard allows you to anticipate expenses and manage your activity.
Adaption of your needs
Online accounting software generally offers several types of subscriptions. In general, you will be able to choose between different types of offers which will offer you more or fewer options.
At QuickBooks, for example, you have a choice between 3 prices:
- The first offer, billing, concerns customers who only want to create quotes and invoices, mainly self-employed,
- The management offer concerns those who wish to do their management to have statistics but also follow their expenses and expense reports,
- If your need is to be able to take stock at the end of the year, the most suitable offer is pre-accounting.
Data security and regular updates
Hosting accounting and financial data can sometimes lead to reluctance on the part of some entrepreneurs. Note that online software publishers devote significant financial resources to securing data. That’s why you can trust them, but choose the provider with whom you want to work carefully.
Businesses that purchase online accounting software do not have to update themselves. Indeed, it is the editor of the application that takes care of it. The cost of the subscription also includes the updates made, which is not the case with “classic” software, the updates of which can be an additional cost.
Accounting software subscription may be billed monthly. At any time a company can cancel its subscription because most publishers do not ask their customers for any commitment.
Relations with the simplified accountant
The transfer of accounting documents is more simplified, no need to send by post, no need for paper documents that pile up at your place, everything is online. In addition, the availability of accounting documents is online on a protected cloud. Your accountant can access it at any time.
Accounting firms that choose to work with online accounting software attract new customers: entrepreneurs who are sensitive to new online solutions. This allows them to approach customers for whom proximity was not important until then. In addition, accountants can gain notoriety because they are in tune with new technologies.
Online accounting software saves both accountants and entrepreneurs time. Thanks to this solution, they can access all of their customers. This also allows them to save time on trips and dematerialize part of its services. Accountants will, therefore, have more time to devote to their core business, that is to say, supporting the entrepreneur.
Choose your online accounting software
Currently, on the market there are many accounting software. They are adapted according to the size of your activity, the type of business and the situations. This is why it is important to identify what your needs are before embarking on your search.
QuickBooks offers accounting software that has been designed for entrepreneurs, and not for number professionals, like most other software.
Note that accounting software is not limited to just one tool. Many offer additional options, for example with QuickBooks you can manage your stocks and contacts.
Finally, it is strongly advised to test your future software before choosing it definitively. You will have a more precise idea of its daily use (ergonomics, fluidity of navigation, functionality, personalization, etc.). QuickBooks offers a 30-day trial completely free and without obligation.
To conclude, pay attention to the origins of your software for the security of your data, test before subscribing, compare, communicate with the different platforms to test their effectiveness, analyze the different offers according to your needs.
