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Bookkeeping Bytes By Alexbookkeeping shows you how to add a product or service in Waveapps. https://youtu.be/t2y0BV4_jKg

How to add a Product or Service Bookkeeping Bytes By Alexbookkeeping shows you how to add a product or service in Waveapps. ...

WHICH ACCOUNTING SYSTEM IS BETTER FOR YOU, CASH OR ACCRUAL?

When you start a business, there are several decisions you need to make. One of them is Cash or accrual system for your accounting. How do you know which one is right for you? I will show you the pro’s and con’s of each system.

What is Cash Accounting System and How Does It Work?

When you use the cash system, you only record the transaction when cash exchanges hands. So you’ll record income when you receive a payment through cash, card or check. The same for expenses, once you pay a bill you record it. Cash accounting is better for small businesses especially if they have little or no debt. Drop shippers, some lawn services and cleaning services.

The Pro’s are:

1. Easy to use

2. Exists in the present

3. Potential tax advantage

The Con’s are:

1. Doesn’t show the full picture

2. Restricted use

3. Potentially difficult to switch over

What is Accrual Accounting System and How Does It Work?

It is better for more complicated businesses or businesses who sell or purchase on credit, such as car dealerships and appliance stores.

Which Accounting Method Should You Choose?

Most businesses use accrual method of accounting, since most businesses sell or purchase on credit. If you sell or purchase on credit too, you should also use the accrual method of accounting. If you only deal in cash sales, you should use cash accounting system to record your business consulting services.

When you file for business tax returns for the first time, the IRS requires you to mention the type of accounting method you use in your small business. Make sure you’re clear about the type of system you want to use and follow the good practices to smoothly maintain your accounts.

The Pro’s are: Of Accrual Accounting

1. Realize True Profit

2. Easy Forecasting Future expenses and revenues are taken into account with accrual which makes for simple business planning. Creating budgets from these predictable sales and expenses allows companies to be the most efficient when it comes to proper staffing and maintaining a sufficient inventory of goods. Staying ahead of future business financials is a key benefit with accrual accounting.

3. Tax Expenses Can be Accounted for Immediately

The Cons are

1. Cash Flow Uncertainties

2. Difficult Calculations

https://acountingways.com/bookkeeping

5 Must-Have Money Management Apps for Small Business Owners

Do you need help with your financial situation? Here are 5 Apps that help you with that.

The five apps that can make you a more financially-savvy business owner:

Waveapps Invoicing

This create and manages your invoices on the go. It makes it easier for you to be the sales rep at the same time as being the business owner, especially if you are out on the field with a customer. You can make edits to invoices and even collect payments and collect payments. DM me if you need a free lesson on how to set it up.

Financial Calculators by BishiNews.

Raising financing is just a part of life as a business owner. Sometimes, you need to get financing in a hurry. In that rush, you may not actually take the time to fully understand the terms of the loan. This top ranked financial calculators app deals with both present value and future value of money. It has the following calculators: TVM Calculator, Currency Converter, Loan Calculator, Compound Interest Calculator, Retirement/401k Calculator, Credit Card Pay Off Calculator, Tip Calculator, Annual Percentage Rate (APR) Calculator, Return on Investment (ROI) Calculatorand Auto Loan/Lease calculator.

All Currency converter

As many drop-shippers do, they deal with many different countries and different suppliers. So it is hard to get an accurate price for the goods they are selling and for them to cover costs and make a profit. This app gives you live exchange rates for most currencies.

Expensify

With Expensify, you simply take a picture of your business receipt. The app then turns the picture into an easy-to-read expense report. With the push of the button, you or your team can then submit the report to your accounting team. It’s free to use for individuals and $5 per month per user for businesses. However, businesses get two free accounts to start and are only charged for additional accounts if the app is actually used. That means that if you have a salesperson that doesn’t submit a report in one month, you don’t have to pay for their subscription.

Hubstaff

Hubstaff is a time tracking app that has a wide range of features that make it an incredibly useful tool beyond measuring your team’s productivity. It shows you not only the total number of hours your team has tracked, but also how much you’re spending on each team member, project, and client.

application to manage project budgets

With its project budgeting feature, you can see a detailed overview of your team’s active projects, who’s working on what, and how much you’ve spent so far. You will be notified as budgets are approached so you can make adjustments as needed.

Hubstaff has a payroll feature that automates sending payments to your team. The app can calculate the amount based on your team members’ pay rates and total hours worked, or you can manually send fixed amounts. https://acountingways.com/bookkeeping

Part 5 of my 5 part series on maximizing profits. Identify ALL of your costs to open and operate your company for 12 solid months in a written organized manner.
Set a reasonable salary for you (and your spouse or partner)
Establish an appropriate benefits package for YOU (and your employees if you like)
Discover the correct hourly rates for the type of jobs you sell
Correctly set the hourly rates for each and every piece of equipment you own, lease or rent.
Teach you how to apply fat, juicy profits to each and every job you bid.
Project the exact amount of money you need to retire comfortably at the time you choose.
Reduce the chances that you over-price your bids, quotes or proposals on every job that you pursue.
Clearly establish your 12-month sales goal that will help you meet your personal income goals once and for all.
Set a clear profit goal for your company.
Identify the bad jobs and avoid them like poison ivy in the summer time.
Protect you from over-paying taxes and making poor business decisions.
Improve your insurance plans and LOWER the costs of your commercial insurance policies.
This is why having a good bookkeper os so important.

Hire The Right Accountant – Acounting Ways We will help you manage operations by recommending process improvements and introduce tools that can save you time and money