Should I be doing my bookkeeping myself?

Should I be doing my bookkeeping myself?

Many business owners ask themselves “Should I be doing my bookkeeping myself?”, this is a very important question and you should be considering all of your options.

The 1st question I would suggest asking yourself is, Is doing the bookkeeping yourself really the best use of your time? Truly when it comes to YOUR business you need to spend your time focusing on your clients, growing your business, and taking your company into the future, if doing the books takes you away from any of these items you should consider hiring a bookkeeper.

The next question you should ask yourself is Do you have the knowledge to even do the bookkeeping? This is not an insult on your intelligence it is taking the time to make sure you can get the correct information from your Bookkeeping when it is needed. Although bookkeeping / accounting software’s help walk you through starting your books the knowledge of how to ensure they are setup correctly can be confusing. If you are not recording accurate information then your bookkeeping is rendered incorrect which may lead to problems with your taxes and growing your business.

Software…. Choosing a bookkeeping software can be quite the chore but here at A.S.Bookkeeping, LLC. we like to suggest our clients use QuickBooks. Many of our clients have to come to us and have already started using QuickBooks which is great but while helping clients out we often hear “Oh I didn’t even know you could do that” often times clients are using some other programs or applications and are paying additional money for something that their QuickBooks can already do for them. On the other hand there are also other programs and applications that are supported by QuickBooks that can help your business save time and money by simplifying processes so that you can focus on your business and not the books.

Consider taking a few minutes to calculate how much time your spending on your bookkeeping each month and multiply that by your hourly rate / average party income in hours; You could be losing money by spending time doing the books and not conducting business!

One final thing to consider is are you losing family time because you need to do bookkeeping instead? We are all trying to strive to find balance between work and family and your bookkeeping should not take away from family time because that is time you cannot get back.

Bookkeeping is important, please do not ignore it! We at A.S. Bookkeeping, LLC. would love the opportunity to assist you with your bookkeeping needs and finding a system that works best for you and your business.

To contact us you can complete the below form or email us at amy@as-bookkeeping.com

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Quick Tip- Quickmath Calculator

http://www.fishbowlinventory.com/infographics/quickbooks-tips-four-july-17-2012.html

http://www.fishbowlinventory.com/infographics/quickbooks-tips-four-july-17-2012.html

Organizing Your Office Can Greatly help with your Productivity

Organizing might not be your TOP priority when it comes to your business but taking the time to organize your office may just help your productivity level more than you could imagine.

I found this great article with 25 Office Organizing Tips that everyone can benefit from doing. Here is a summary of the tips provided by “Business Know How” you can find the full article at http://www.businessknowhow.com/manage/getorg.htm

  1. Clean out each desk drawer, to free up even more valuable storage space.
  2. Clear off the top of your desk, then wipe off the surface of the desktop.
  3. Keep essential items on your desktop (computer, phone, fax, card file).
  4. If you work with more than one person create an in box for each person.
  5. Have a master to-do list for each day at your desk.
  6. Pre-Sort the mail.  To-File, To-Read, To-Contact(write or call).
  7. Use a variety of containers to organize office supplies, paper clips and pens.
  8. Use a variety of desktop organizers or trays to organize papers that come across your desk.
  9. Create a separate drawer for personal paperwork, items, etc.
  10. Use storage boxes to store dated files.
  11. Purchase Magazine boxes to store booklets, magazines, catalogs you want to keep.
  12. Create a file for magazine articles or scan them into your computer.
  13. Filing system should be simple easy and manageable
  14. Color-coding your files makes it faster to find information.
  15. Do not over stuff folders.  It may be time to toss some of the information in the folder .
  16. Never overload filing drawer.  It will make it difficult to retrieve information in the drawers.
  17. Sub-divide larger files with interior file folders.
  18. Tab hanging file folders in the front.
  19. Return calls in batches.  Leave specific messages and the time you called if the person you’re trying to reach isn’t available.
  20. Empty workspace of everything but the project you’re working on to cut down on distractions.
  21. Keep an assortment of all-occasion cards and stamps in your desk.
  22. Keep takeout menus from favorite restaurants so you can  order ahead and pick up dinner on your way home.
  23. When using more than one checking account, color coded checks are an easy way to identify each account.
  24. At the end of each project or event, organize paperwork and file or store it.
  25. Straighten desk at the end of the day and especially at the end of the week so that you can start each morning with a clear desk.

The above information was obtained from http://www.businessknowhow.com/manage/getorg.htm!

file boxes

 

 

Cash Flow (Term Tuesday)

Cash Flow

Definition

  1. Investopedia defines Cash Flow as “A revenue or expense stream that changes a cash account over a given period. Cash inflows usually arise from one of three activities – financing, operations or investing – although this also occurs as a result of donations or gifts in the case of personal finance. Cash outflows result from expenses or investments. This holds true for both business and personal finance.” Or “An accounting statement called the “statement of cash flows”, which shows the amount of cash generated and used by a company in a given period. It is calculated by adding noncash charges (such as depreciation) to net income after taxes. Cash flow can be attributed to a specific project, or to a business as a whole. Cash flow can be used as an indication of a company’s financial strength.” http://www.investopedia.com/terms/c/cashflow.asp
  2. Another great definition or explanation of Cash Flow from Wikipedia “Cash flow is the movement of money into or out of a business, project, or financial product. It is usually measured during a specified, limited period of time. Measurement of cash flow can be used for calculating other parameters that give information on a company’s value and situation. Cash flow can be used, for example, for calculating parameters: it discloses cash movements over the period.”
  • “to determine a project’s rate of return or value. The time of cash flows into and out of projects are used as inputs in financial models such as internal rate of return and net present value.”
  • “to determine problems with a business’s liquidity. Being profitable does not necessarily mean being liquid. A company can fail because of a shortage of cash even while profitable.”
  • “as an alternative measure of a business’s profits when it is believed that accrual accounting concepts do not represent economic realities. For instance, a company may be notionally profitable but generating little operational cash (as may be the case for a company that barters its products rather than selling for cash). In such a case, the company may be deriving additional operating cash by issuing shares or raising additional debt finance.”
  • “cash flow can be used to evaluate the ‘quality’ of income generated by accrual accounting. When net income is composed of large non-cash items it is considered low quality.”
  • “to evaluate the risks within a financial product, e.g., matching cash requirements, evaluating default risk, re-investment requirements, etc.” http://en.wikipedia.org/wiki/Cash_flow

Here is a link to brief informational video on “Understanding Cash Flow” from Investopedia:

http://www.investopedia.com/video/play/what-is-cash-flow/

 

Cash Flow Image

 

6 Things about Money You May Not Think About BUT should!

Here is a great article from Entrepreneur Magazine on  6 Things about Money You May Not Think About BUT should!

Click here to read the full article http://www.entrepreneur.com/article/225377

Key Points in the Article

1. Protecting your personal credit rating.

2. Diversifying your portfolio.

3. Choosing the right business entity.

4. Discussing finances regularly with your spouse or partner.

5. Keeping personal credit cards out of your business.

6. Aligning your salary with your business cash flow.

dollar sign

Accounts Payable aka A/P & Bills (Term Tuesday)

bills-to-pay-before

Accounts Payable aka A/P & Bills

Definition

  • “Any amount owed as the result of a purchase of goods or services on a credit basis. Although a firm making a purchase issues no written promise of payment, it enters the amount owed as a current liability in its accounts. Companies often incur this type of short-term debt in order to finance their inventories, especially in industries where inventory turnover is rapid.” http://www.merriam-webster.com/dictionary/account%20payable
  • QuickBooks help center defines this account “The record of the outstanding bills of a business. Accounts Payable is called A/P for short. (Even though the word accounts is plural, QuickBooks uses a single account on the chart of accounts to track all outstanding bills.)”

“An account that QuickBooks automatically adds to your chart of accounts the first time you enter a bill. QuickBooks uses this account to track the money your business owes to others. When you enter a new bill, or pay off outstanding bills, QuickBooks records the transaction in the register for your Accounts Payable account.”

“Your chart of accounts lists the type of this account as “Accounts Payable.” If you need to use more than one of this type of account in your business, you can add additional “accounts payable” accounts to the chart. When you have more than one accounts payable account, QuickBooks lets you choose the account you want to use when you enter and pay bills.”