I would be lying through my teeth if I said that I enjoyed the business side of blogging. Granted, when I was younger, I loved to pretend to be an accountant. My mom was in the corporate banking world for a little while so I think this had something to do with it. But that was then. And this is now. And the adult me does not like taxes, accounting, or finances. I like money. I like making money. I like saving money. I like spending money. But I don’t like tracking it. However, thanks to Xero, I am happy to bring you some bookkeeping and accounting basics for bloggers.
Differences Between Bookkeeping and Accounting:
Bookkeeping is the recording of a business’s financial transactions. It is the first step of the accounting process, which also includes classifying, reporting and analyzing financial data.
Financial statements provide owners with crucial information such as the business’s liabilities, assets, equity and profitability over a given period.
Business Tax Know-how
Though U.S. tax laws are complex and changing, there are tax planning strategies that can ensure that business owners don’t pay more than is required or alternatively underpay and risk being audited.
Business tax planning requires knowledge not only of federal and state income tax, but also employment tax, sales and use tax, real estate tax, and franchise tax for some businesses. Our professional will work with you to ensure that no details are missed in tax deductions or credits. This is especially crucial for small business owners, who usually lack in-house financial experts.
Bookkeeping Software for Bloggers and Small Business Owners
With more and more people self employed and setting up businesses from home accounting software are becoming much more of a necessity. If your business is lucky enough to be growing rapidly you may have trouble keeping a track of all your finances.
If you don’t want to spend every evening yourself going thorough the accounts you could pay an accountant to do all this for you, but this is costly and not feasible for small businesses that are starting out. The best way is to buy reputable accounting software. And if you get this right is could be a major investment for your business.
But you don’t want to spend a lot of money on accounting software only to find out that a few months down the line your business is growing so rapidly and your accounting software cannot handle it.
The problem with accounting software is that there is no single best product that suits every businesses needs. To find the best software you need to evaluate what your needs for your particular business are. Some of the questions you need to ask are:
* What exactly do you want the software to do?
* Will it cope if my business trebles in a year’s time?
* Will the software meet my current and future needs?
* Does the package provide web integration?
* Can the software be customized? If so will it be capable of meeting your full requirements?
* Is the vendor reputable and do they offer customer and technical support?
* Does the software produce the reports your business needs?
* Is it easy to use?
The best way forward is to research your particular business accounting needs. Read reviews and find similar companies to yours and find out what software package they use and ask all the pros and cons of that particular software.
Enter Xero – Online Accounting Software for your small business needs.
With Xero you can:
- Process Invoices and Quotes
- Reconcile Your Accounts Quickly
- Track Your Inventory
- Work on the Go with the Xero Mobile App
- Manage Bills and Expenses
- Pay Your Employees Quickly
- Send Purchase Orders Fast
Xero also integrates with over 500 apps and programs to help you run your business.