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The Accounting Needs of Small Businesses

The Accounting Needs of Small Businesses

Have you recently gotten your small business setup underway. If the answer is yes, then you should know that your accounting department will be of utmost importance. Bearing that in mind, here are some of the accounting needs that your small business will have to contend with:

A Bank Account

One of the first things that you need to do to get the accounting department of your small business on track, is open up a bank account, owing to your need of having a place to stash your business income. It is advisable for you to have a separate bank account for your business, so that you are easily able to distinguish the wealth of your business from your own wealth. While we are at it, it is important to note that sole proprietors are not bound by law to have separate bank accounts but the owners of Limited Liability Companies are. However, it is recommended for your business to have a separate bank account, regardless of the form and structure.

Developing a Bookkeeping System

Once you have got a bank account in place, it is time for you to get the accounting department of your small business rolling. However, before you can get down to it, it is essential for you to develop a system of bookkeeping that your business will follow. If you own a sole proprietorship, then there are a number of flexibilities that have been allowed for you to make use of for the purpose of benefiting your business.
For instance, you will need to choose the best accounting software for the use of your business, depending upon its needs. On top of that, you will also need to make decisions relating to the method of accounting that will be used within your business.

The Tracking of Expenses

When you speak of small businesses, it is nothing short of a fact that they have got to continuously battle with the lack of funds, especially in their initial years of operation. What this means is that businesses not only need to cut down their expenses, as much as possible, but keep tabs on them as well, considering how controlling expenses will be next to impossible if a business is unable to track them.
Having said that, there are certain kinds of expenses which a small business has got to keep a keen eye on, especially when you consider how the business might be getting coaxed out of money in their name. For instance, if you see an employee traveling in the name of business, a lot, it is advisable for you to check just how “business related” their adventures really are.
When you take it all into perspective, you realize that the considerations discussed form only the tip of the iceberg when it comes to the accounting needs of a small business. In order to get an in-depth understanding of how the accounting of your business is supposed to be carried out, your questions are always welcomed by the experts at SKB Accounting!

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Importance of Business Integration for Growth

Importance of Business Integration for Growth

When you speak of business growth in the contemporary world, there are certain internal factors which have become exceedingly important, with the passage of time. Among these; business integration has grown in importance very rapidly. Here are some of the reasons why business integration is important for the growth of a business:

Communication

One of the major benefits of business integration is in the streamlining of the sphere of communication. Businesses that are well-integrated offer streamlined communication between all of the involved parties and participants. Regardless of how different the operations of these participants might be, a well integrated business will ensure that everyone is able to get their word in, especially when it matters. A better means of communication will ensure that the sharing of information becomes dramatically easier and cheaper, meaning that the probability of bad decisions will be considerably reduced, especially due to the lack of access to information.

Available Resources

When you speak of business integration, it is a fact that it allows businesses to make the most of the resources that are at their disposal. It is because business integration lets companies leverage their employees and resources in such a way that they are able to extract the maximum possible utility from them. It has been proven that integrated organizations don’t waste the potential of their employees by assigning jobs that are meaningless or repetitive. On top of that, organizations can also benefit by integrating with companies such as PayPal and Amazon, all for the purpose of getting the most out of their resources and potential.

Productivity

We all know how organizations wish to increase their productivity as much as possible, right? Well, this end can be achieved if organizations take the route of business integration. Businesses that are integrated reduce the need for data duplication so that it may be used at different places, for different purposes. With the need for duplication reduced, employees can focus on the issues that really matter. On top of that, integration with PayPal, for instance, will reduce the need for a business to focus on its system of payments.

Growth

Having a business integration setup in place ensures that all of the data for businesses is hoarded at a singular location so that it might be accessed and made use of easily, by everyone relevant. The simplistic nature of the sharing of information adds to the growth of the organization, owing to how problems will then be solved in a few clicks, as compared to accessing different systems, which would need to be done otherwise.

When you put everything into perspective, the importance of business integration cannot be denied. Businesses not only need to be internally integrated but integrated with companies such as Amazon and PayPal as well, if they are to grow in the contemporary world. Bearing this in mind, the experts of SKB Accounting are best equipped to take care of all of the needs you might have in this regard!

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SKB Accounting

We provide accounting / bookkeeping services to our clients to ensure organizational efficiency resulting in measurable performance improvements. Our advanced technology, seamless process and a team of highly skilled people, reflect our passion

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Client Alert: New OMB Overhead Regulations

The US Office of Management and Budget (OMB) announced the finalization of a new regulation impacting small nonprofits. OMB announced the finalization of new regulations increasing the audit threshold from $500,000 to $750,000 in annual Federal funding and setting a new minimum 10% indirect cost rate on Federal grants.

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Accounting-Best Practices

If you own a business, one of the most important things you should do is to keep careful track of your expenditures and income. This is not only necessary to keep your business afloat financially, but also is an important way to analyze your spending and predict your future revenue. Careful business analysis allows you to predict what your future will be in a way that is not possible otherwise. But this requires best practices in accounting and bookkeeping. To do this efficiently and in a way that will best help your business, here are some of the best practices, according to accounting experts:

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Ratio Analysis

Ratios act as a useful tool to measure business performance. Ratios are a quotient of two numbers and the relation expressed between the two accounting figure is known as ‘Accounting Ratio. There will be a natural difference between ratios according to the nature of the business, the size of the business, its age and the industry within which it operates.Ration analysis is a very important part of the accounting services, bookkeeping services. Different reports can be prepared and memorized for future use, using QuickBooks Statement writer which is part of QuickBooks Accountants edition. They are generally assessed in relation to a comparator or benchmark such as

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