Thursday, 27 April 2017

What is a Business Expense?

Operating a business comes at a cost. These costs include manufacturing, marketing, salary payment, administrative costs, and more. All such costs that organizations incur on a routine basis are termed as a business expense. Although every organization has its own set of expenses, there are some common business expenses that most firms pay. Efficient management of these business expenses helps in increasing profits and reducing your tax burden. Here is a list of some common business expense that must be anticipated and managed.

Location Expense

Every business operates from a tangible space. It may be a part of your home or space at a different location. Hence, costs related to the office space are a common business expense. You may have leased or rented the location, or it may be a mortgaged property. Hence, rent or lease and interest on the mortgage would count as some common expenses.

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Friday, 21 April 2017

Accounting Tips for Small Businesses

Accounting is a key function for any business. It is a critical concern of small business owners. It is imperative to keep a tab on all expenses, bills and receivables as the resources in hand are limited and need to be used sparingly. For a small business, saving resources wherever possible is crucial. Whether it be gaining a tax advantage or curbing costs; small businesses have to keep a tab on all of it. It is only then that they increase their profit margin and growth percentage.

Here are a few tips that can help you go through the rocky road of accounting.

Track your Expenses

It is understandable that as business owners you have to take care of all aspects of the company. But tracking your expenses aptly will help you stay on the right page in terms of future financial planning.

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Friday, 14 April 2017

Are your Books Balanced?

Bookkeeping and accounting may not be daunting but are an essential part of business and financial management. A balance sheet is one of the financial statements that help entrepreneurs evaluate their business’s financial health. However, many business owners, especially those with a traditional accounting system in place, face difficulties in balancing their books. Balanced books are vital to gain a clear picture of your business and financial status. It also acts as a strong foundation for vital strategic decisions. While it can be tiresome, there are ways to ensure your books are always balanced. Here are some tips to help you balance your books.

Keep Your Business and Personal Accounts Separate

Mixing business and personal accounts is a common mistake that hinders balancing books. The mixture makes accounting difficult as you have to weed out business related invoices, bills, receipts and payments before recording and balancing. This leads to errors disallowing statements to tally. Having separate accounts is a sign of better organization, making it easier for accounting and balancing your books.

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Thursday, 6 April 2017

5 Signs you have a Terrible Accountant

Accounting and bookkeeping are critical elements of any business. Effective accounting allows you to make informed decisions, reduce costs, generate more profits, and track your business growth as well as financial status. Many business owners hire accountants solely on the basis of their taxation experience. A skilled and competent accountant can do much more than just save taxes or make payments. Not considering an accountant’s knowledge levels and competencies while hiring, can hamper your business. Here are a few signs of a bad accountant that you must bear in mind while hiring one.

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