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Nov 23
Navigate Your Numbers With Bookkeeping for Business

Navigate Your Numbers With Bookkeeping for Business

Keeping your finances in check is crucial to every business. Moreover, having the right knowledge and tools makes a business more successful.

But running a business doesn’t stop there. You will also need the right staff if you want to comply and stay on top of financial standards.

This is where bookkeeping and small business accounting come in.

What Is Bookkeeping?

What Is Bookkeeping

Bookkeeping is the systematic recording and organizing of financial transactions in a company. It gives you a clear view of your business’s finances, helping you make informed decisions.

What Is Small Business Accounting?

What Is Small Business Accounting

Business accounting is a specialized area focusing on the financial management of business owners.

What Does A Remote Staff Accountant Do For A Small Business?

Remote Staff partners U.S. business owners with remote accountants for a seamless bookkeeping experience.

A Remote Staff accountant can:

  • Manage your financial records;
  • Process transactions; and
  • Manage financial compliance.

Choosing An Accounting Method

It’s crucial to choose the right accounting method for your business, such as:

Cash-based Accounting

This tracks your revenue and expenses when they are received or paid.

Accrual-based Accounting

This records transactions when they are incurred.

Bookkeeping Basics for Small Businesses

Understanding the fundamental principles of bookkeeping for a small business helps you have a solid foundation.

How Remote Staff Do Bookkeeping

How Remote Staff Do Bookkeeping

A Remote bookkeeper can transform the way your company manages its finances. Some of the advantages include precision, reliability, and convenience.

Here are some ways a bookkeeper can help:

Choose An Entry System

A bookkeeper can help you choose between a single-entry or double-entry bookkeeping system. Each system has its own advantages depending on your unique needs.

Choose Bookkeeping Method

A bookkeeper also makes sure that your small business bookkeeping is in harmony with your chosen accounting method.

This alignment leads to a seamless financial management and keeps your business on the right track.

Manage Transactions

A bookkeeper keeps track of each transaction with accuracy.

This attention to detail will keep your finances clear and understandable, leading to better financial decisions in the future.

Set Up General Ledger

A bookkeeper helps lay the foundation by setting up a robust general ledger.

This consolidated financial information is your go-to for a comprehensive view of your business’s status.

Create Business Accounts

Lastly, a bookkeeper can set up business accounts that suit your business needs.

This tailored approach will aid your business’ financial management and decision-making.

The Most Common Small-business Accounts

A small business typically deals with a variety of accounts, each serving a unique purpose in financial management.

The most common include:

  • Cash Account. This is where your business transactions (both payments and receipts) are recorded. It’s the heartbeat of your small business, keeping everything in check.
  • Accounts Receivable. This keeps track of the money owed by customers. It’s a handy bank account to ensure you are on top of payments.
  • Accounts Payable. This account tracks your debts and bills. It’s a list of what needs to be paid and when like credit card bills.
  • Inventory. An inventory helps you manage your stock levels efficiently. This is a must if you manufacture and/or distribute products.
  • Expenses. This tracks your expenses from utility bills to salaries.

Regardless of their purpose, each business bank account plays an important role in helping you manage your business.

Compare Accounting Options

Choosing the right accounting software or method is also crucial to your financial success.

Here’s how to compare your options:

  • Features. Look for a bookkeeping software that offers the right features. This software must handle all your accounting needs from invoicing to expense tracking.
  • Ease of Use. Choose user-friendly accounting apps. You shouldn’t have to spend hours trying to figure out how to use it.
  • Cost. Budget is always a consideration. Compare costs and ensure the software offers good value for money.
  • Support and Resources. The software provider should offer robust customer support and resources to help you navigate any issues.
  • Integration. Opt for a software that integrates seamlessly with your current business tools and systems.

Comparing the available options helps you find the right accounting software that matches your business needs.

Balance The Books

A bookkeeper balances the books to align your financial records, giving you a clearer picture of your business’s status.

Thus, small business bookkeeping is fundamental for:

  • Making informed business decisions; and
  • Planning templates for future growth.

Handle Accounts Receivable And Payable

Bookkeepers manage accounts payable and receivable.

Their goal is to collect from customers and pay vendors promptly. This will maintain strong business relationships and a healthy financial flow.

Set Up Payroll

Establishing a reliable and efficient payroll system is non-negotiable.

A bookkeeper helps by setting up your payroll system that is in line with legal and tax obligations.

Create A Bookkeeping Schedule

Bookkeepers create a consistent bookkeeping schedule to keep financial records accurate and reliable. This is essential for timely reporting and financial analysis.

Manage Financial Statements And Documents

Proper management of financial statements and documents is a must. A bookkeeper helps by organizing and storing them securely for easy access and reference.

Accurate financial statements are crucial for:

  • Business analysis
  • Tax compliance
  • Potential audits

Know The Basic Bookkeeping And Accounting Lingo

A Remote Staff bookkeeper is equipped with basic bookkeeping and accounting jargon.

Thus, your bookkeeper can share basic accounting principles that can lead to better management and oversight.

Set Budget Aside For Tax Purposes

A bookkeeper also helps set aside a budget for tax purposes. This will help you:

  • Prevent last-minute financial strain;
  • Promote timely tax payments to the Internal Revenue Service (IRS)
  • Avoid penalties; and
  • Safeguard your business’s reputation

Separate Expenses

It’s important to separate business and personal expenses. A bookkeeper can help you separate expenses to:

  • Simplify bookkeeping;
  • Provide a clearer financial picture; and
  • Lead to accurate tax calculations and compliance.

Keep Records Organized

Being organized is key to bookkeeping. Your bookkeeper can organize your financial records for efficient management, reporting, and audit preparation.

Track Expenses

A bookkeeper also helps track all expenses to:

  • Provide insight into spending patterns;
  • Help in budgeting; and
  • Monitor financial reporting and tax compliance.

Keep Accounting Statements Up-to-date

Bookkeepers regularly update your accounting statements to lay the foundation for:

  • Financial analysis
  • Business decisions
  • Compliance with reporting standards

Leave An Audit Trail

They also help maintain a clear audit trail by documenting all financial transactions. This transparency is important for:

  • Audits
  • Financial analysis
  • Adherence to accounting standards and regulations

Keep Tax Deadlines In Mind

A bookkeeper keeps track of tax deadlines to avoid penalties and keep your business in good standing with authorities.

Calculate Gross Margin

Bookkeepers also calculate your business’s gross margin. This provides insight into profitability, helping you make informed pricing, sales, and growth strategies.

Apply For Small-business Funding

Adequate funding supports business growth, expansion, and smooth operations. If needed, a bookkeeper can help you explore and apply for small-business funding.

Periodically Reevaluate The Methods

Continuously assess and reevaluate your bookkeeping and accounting methods. Adapt and optimize them to meet your evolving business needs.

Send Invoices

A bookkeeper also sends prompt invoices to maintain cash flow. This helps your business maintain good standing and create positive customer relationships.

Reconcile Every Transaction

A bookkeeper reconciles every transaction to promote accuracy in financial records.

Add Journal Entries To Debit And Credit Accounts

They also add journal entries to debit and credit accounts. This keeps all transactions recorded and categorized. It also maintains clear and reliable balance sheet.

Adjust Entries At The End Of Each Accounting Period

Lastly, a Remote Staff bookkeeper makes necessary adjustments at the end of each accounting period. This helps your financial statements reflect your business’s financial status accurately.

Having a bookkeeper can help improve your business’s financial health and compliance. In fact, they can help you sustain your business’ growth, leading you to financial success.

Tips For Bookkeeping And Accounting

Tips For Bookkeeping And Accounting

Managing your finances doesn’t have to be a daunting task. Here’s how:

  • Stay Consistent with Record Keeping. Regularly update and organize your financial records. Consistency is important in record keeping to avoid errors.
  • Familiarize Yourself with Accounting Terms. Learn the basic lingo used in accounting and bookkeeping. This allows better understanding and communication.
  • Set a Budget for Tax Purposes. Allocate a specific budget for tax obligations. This leads to timely payments to avoid financial strains.
  • Separate Personal and Business Expenses. Make a clear distinction between your personal and business expenses.

    This simplifies bookkeeping and is essential for accurate tax returns calculations.
  • Regularly Review Your Financial Records. Make a habit of reviewing your financial reports for easy monitoring and decision-making.
  • Utilize Accounting Software. Leverage accounting software to automate various tasks, minimize errors, and streamline your bookkeeping processes.
  • Hire a Professional When Needed. A professional bookkeeper or accountant can provide valuable insights and help organize your finances.
  • Keep a Close Eye on Accounts Receivable. Monitor your receivables to maintain a healthy cash flow and to settle overdue accounts promptly.
  • Track Every Business Expense. Track all your expenses diligently. This is essential for budgeting, financial analysis, and tax compliance.
  • Reconcile Your Books Regularly. Always reconcile your books to verify that your financial records match your bank statements.

    This practice helps identify and rectify any discrepancies promptly.
  • Stay Informed About Tax Deadlines. Keep track of all tax deadlines to avoid penalties and keep your business in good standing with tax authorities.
  • Conduct Regular Financial Analysis. Analyze your financial data regularly to gauge your business’s performance, identify trends, and formulate strategies for growth.

How To Hire a Remote Staff Bookkeeper

How To Hire a Remote Staff Bookkeeper

Remote Staff can provide the right professional to handle your books. Here’s how the process works:

  1. Share Your Staffing Requirements. Begin by sharing your staffing needs. Let Remote Staff know the skills and experience you’re looking for in a bookkeeper.
  2. Complete Assessments. Take a moment to complete a Job Assessment and Behavioral Assessment. These will help Remote Staff understand your expectations.
  3. Discussion with Lead Recruiters. Lead Recruiters will reach out and discuss your requirements and timeline.
  4. Posting Your Remote Job Opening. They will post your Remote Job Opening to attract the best bookkeeping talents from across the Philippines.
  5. Pre-Qualifying Applicants. They pre-qualify each applicant through a comprehensive process which includes interviews, behavioral and cognitive profiling, and skills testing.

    Internet connection, hardware resources, police clearance, and other references may also be verified.
  6. Reviewing Shortlisted Candidates. After pre-qualification, they will send the resumes of shortlisted candidates for your review.
  7. Facilitating Interviews. Decide which candidates you would like to interview and Remote Staff will facilitate the process.
  8. Decision-Making Assistance. Remote Staff works closely with you to help you choose the right bookkeeper.
  9. Hiring Your Selected Staff. Once you’ve made your choice, they will handle the hiring process on your behalf, taking care of all the details.
  10. Introduction to After-Hire Support. You will be introduced to your after-hire support team. A remote platform will also be provided as you move forward.
  11. Issuing Your First Invoice. Remote Staff’s accounting department will issue your first invoice, keeping the financial aspects clear and straightforward.
  12. Access to the Remote Staff Platform. You and your new bookkeeper will be given access to their platform for seamless communication and workflow.
  13. Ongoing Support. You can count on Remote Staff for ongoing support even after hiring and onboarding.

When Is It Time To Hire Someone in Remote Staff?

Hire a bookkeeper if you need help managing your finances so you can focus on your business.

Remote Staff has a pool of skilled bookkeepers who can help streamline your financial processes.

Bookkeeping Tools and Software Used in Remote Staff

Bookkeeping Tools and Software Used in Remote Staff

Remote Staff harnesses technology to make bookkeeping efficient and error-free. Aside from spreadsheets like Microsoft Excel, they use the following tools and apps:

Xero

Remote Staff uses Xero, a user-friendly and efficient accounting system for seamless bookkeeping. It helps manage invoicing as well as expense tracking.

QuickBooks Online

They also use QuickBooks Online, a comprehensive platform that simplifies various accounting tasks for better financial management.

How Software Can Help Our Bookkeepers

Accounting software like Xero and QuickBooks Online are beneficial for Remote Staff bookkeepers because they can

  • Automate various tasks
  • Minimize errors, and
  • Save time.

These tools also provide bookkeepers with the right support to keep track of your finances effectively.

Basic Bookkeeping Terms You Need To Know

Basic Bookkeeping Terms You Need To Know

Navigating your business’ finances becomes easier when you are familiar with basic bookkeeping terms, such as:

  • Assets – Everything that has monetary value
  • Liabilities – Debts and obligations
  • Equity – Owner’s financial interest
  • Revenue – Income from the business
  • Expenses – Costs incurred by your business
  • General Ledger – Primary accounting record for tracking financial transactions
  • Accounts Payable – Obligations owed to creditors or suppliers
  • Accounts Receivable – Money owed by the company’s customers

Knowing these terms provides a solid foundation for managing your business effectively.

Need More Bookkeeping And Accounting Help?

Reach out to professionals if you need day-to-day assistance in bookkeeping. They can provide the expertise and insights to help streamline your business for accuracy and compliance.

Frequently Asked Questions

Frequently Asked Questions

Here are some frequently asked questions about bookkeeping:

Can You Do Your Own Bookkeeping For Business?

Yes, you can! With the right tools and basic accounting knowledge, you can handle your own bookkeeping.

However, as your business grows, consider hiring bookkeeping services to help keep your books updated.

Do Small Businesses Need Bookkeeping?

Absolutely! Effective bookkeeping is crucial in cash flow management and tax compliance. It also helps you make sound business decisions.

What Skills Does A Bookkeeper Need?

A bookkeeper should have the following skills:

  • Strong attention to detail;
  • Proficiency in accounting software;
  • Basic math skills; and
  • Understanding of financial principles.

How Much Should A Small Business Pay An Accountant?

Research local rates and consider your budget when hiring a Certified Public Accountant (CPA). The cost usually varies depending on location, company size, and job complexity.

How Much Is Quickbooks For Small Businesses?

Choose a plan that aligns with your business needs and budget.

For instance, QuickBooks offers various pricing plans tailored for a small business, starting as low as $1/month.

What Is The Best Bookkeeping Method For Small Business?

Many small business owners start with cash-based accounting and transition to accrual accounting as they grow.

Understanding and effectively managing your finances requires the right knowledge and support.

Fortunately, you can grow your business faster with Remote Staff. With more than 15 years of experience, they can match your business with exceptional Filipino remote workers.

Get in touch with Remote Staff today and watch your business transcend its limits. Schedule a call back now.

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Serena has been working remotely and writing content for the better part of the last decade. To date, she's written for Pepper.ph and Mabuhay Magazine, among others, and has churned out more than a thousand articles on everything from The Basics of Stock Market Investing to How to Make Milk Tea-Flavored Taho at home. Hermits, aspiring hermits, and non-hermits with interesting project propositions may email her at serena.estrella10@gmail.com.

About The Author

Serena has been working remotely and writing content for the better part of the last decade. To date, she's written for Pepper.ph and Mabuhay Magazine, among others, and has churned out more than a thousand articles on everything from The Basics of Stock Market Investing to How to Make Milk Tea-Flavored Taho at home. Hermits, aspiring hermits, and non-hermits with interesting project propositions may email her at serena.estrella10@gmail.com.

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