Accounting is one of the core, yet under-emphasized, activities in a company. It involves measuring, processing, and communicating financial information about the company to all the stakeholders. This is considered as a tedious task – and actually is – with high chances of error.
Our accountants in Boynton beach at Actony Inc. do this every day for their livelihood and hence are experts in this field. Here are five useful tips we’ve shared to help accountants perform their duty in a better way.
Choose a Accounting Software Program
An accounting software (also known as a bookkeeping software) IE : Quickbooks - is a computer program that helps accountants to record and report company’s financial transactions. Every business needs to select an accounting software or CRM for their everyday accounting needs. The software should align with the requirements of the company. A large Fortune 500 company would have different requirements than a small-sized local firm. So it’s also crucial to pin down your needs first before looking out for a software.
Keep account receivable and borrowed funds separate
Account receivables refers to the enforceable claim that is either held or delayed by a business for goods or services procured while borrowed funds refers to the borrowings done by the firm from financial institutions. When performing accounting for the firm, it’s easy to lose sight of what’s yours and what needs to be paid back.This often leads to confusion and critical mistakes. To avoid these kind of situation, accountants should take necessary steps to make sure loans don’t appear in the receivables and vice versa.
Collect balances from clients at the right time
We’ve seen most businesses in Boynton Beach make this mistake. Seeing large amount of cash in the receivables column is a good thing for the firm, but it can only be taken advantage of when it lands in your bank account. Financial conditions of every company change. So somewhere down the line, they might not be in a better position to make the payments than they are now. So as an accountant Boca Raton or any other location, you should send regular reminders for making the payments before scheduling another order.
Detail Daily Expenses
Instead of calculating expenses every two or three weeks for payroll purposes, accountants should focus on keeping records of everyday expenses that is incurred by the company. This will give you better clarity on where the finances are at a granular level and help you plan for the future.
Calculate minimum monthly profits
Profits are the bread and butter of any business – it is what keeps the business running. When you’ve tracked daily expenses, you should also track monthly profits. Income are the easiest to calculate, so monthly profit won’t be much of a hassle to find out. The exactitude attained by the accountant might be different and more precise than that calculated by executives or owners.
At Actony Inc., our accountants in Boynton Beach adhere to all the above tips besides tons of others when working on accounting needs of our clients. We take a personalized approach to each of our client that come in and thus are able to provide a better service. If you’re looking for certified accountants in Boynton Beach, contact us today!
Article Resource: https://medium.com/@actonyinc12/5-useful-accounting-tips-for-small-business-accountants-3863410dbfb4
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