Accounting Archives

How to Choose a Cloud Accounting Provider

October 31, 2018/by Team

Putting your accounting in the cloud offers huge advantages, including speed, accessibility from anywhere, and reduced on-site storage needs. But first, make very sure that your provider meets your standards and requirements.

What a Cloud Provider Provides

You’re probably familiar with cloud storage for files; it simply means that this data is stored on a server (your company’s or one you contract with) and is accessible from any computer or other device with an internet connection. A cloud provider goes one step further and lets you run applications as well as storing files. It eliminates the need for keeping software on your own machine.

Must-Have #1: Digital Robustness

It’s critical to keep your financial data safe and secure. The cloud provider you choose should be able to demonstrate:

• Its own data center – rather than outsourcing to some other company

• Data encryption – to make data useless to hackers

• Secured access

• Good uptime – ideally 99.95%, or less than 1 hour of downtime per year

• Backup systems

• Disaster recovery plan

Must-Have #2: Financial Robustness

You want your provider to be around for the long haul, giving you uninterrupted access and support for your data.

Must-Have #3: Universal Compatibility

Your cloud service provider should work with a variety of devices, operating systems, and applications that might be used by various members of your team to access the files and software.

• Apple iOS and Android mobile devices

• Windows PC and Apple Mac desktop and laptop computers

• 3rd-party applications (not just those the provider offers)

Must-Have #4: Data Exportability

Someday, you may want to change cloud providers. You should be able to export your data from their system whenever you want, in a file format that can be used by other software. (This is why you don’t want to get tied into one provider’s apps.)

Must-Have #5: Tech Support

You want to work with a provider that responds quickly and expertly to any problems that might arise. Read through the company’s online community forum to get an idea of how they value and interact with their customers.

Must-Have #6: Scalability

As your company grows, the accounting infrastructure must be able to handle your increased need for processing power and data storage. What’s more, your provider should schedule updates and upgrades with you in advance, so that you’re not hit with an unexpected downtime at the worst possible moment.

Must-Have #7: Clear Billing Plan

The pricing structure should be detailed enough that you won’t be stuck with any surprise charges. For example, will you be using your own internet provider which you’re already paying for, or will there be a dedicated data connection to the cloud that costs extra? Also, look beyond the lowball sign-up cost, which the provider may make up for down the road with steep increases after the initial period.

Enjoy Your Cloud-Based Accounting

xendoo clients get access to Xero Accounting software, a best in class cloud accounting platform. Take advantage of the convenience and cost savings of accounting in the cloud!

8 Ways DIY Accounting Costs More Than It Saves

August 9, 2018/in Accounting /by Team

A business owner trying to do diy accounting

No matter how much they hate it, small business owners tend to do their own accounting. They’ll tell you they’d love to hire a bookkeeper, but they just can’t justify the expense.

What they don’t take into consideration is all the ways a professional CPA can cut business expenses, take advantage of savings opportunities, and avoid costly mistakes. Here’s what having a good accountant can do for you:

1. Find more tax breaks.

A good business accountant will claim expenses you may not have known were deductible. They can also advise on the timing of major purchases to take full advantage of tax credits and depreciation.

2. File taxes on time.

Late returns and other compliance paperwork will incur penalties and interest.

3. File accurate taxes.

Under-reporting how much you owe could lead to big trouble with the IRS, as well as state and local authorities if you collect sales tax.

4. Send invoices out on time.

An accountant will help you avoid a cash flow crisis by keeping up to speed with invoicing.

5. Track late payments.

Well-kept books should show you at a glance what you’re owed and when it’s due. No more need to spend time and money on collections efforts.

6. Eliminate data entry errors.

For the DIY bookkeeper, figuring out and fixing the mistake could take hours — which the small business owner could spend more profitably elsewhere.

7. Provide information for smart business decisions.

You should be able to spot right away when there’s an issue with cash flow, inventory, or profit margin, and take early corrective action. On the flip side, your accountant can point out opportunities for growth or reducing unnecessary costs.

8. Free you up to add value to your business.

Is it a smart use of your time to be doing data entry, tracking invoices/payments, reconciling bank accounts and control accounts, processing payroll, managing inventory, preparing tax documents, and so on?

“But I still can’t afford an accountant”

The benefits may be clear, but most owner-managers just don’t have the budget to add a full-time professional accountant. As small business specialists, we understand your position. That’s why we offer affordable monthly plans that cost less than half of what a traditional accountant typically charges (in a couple of hours!).

How to make the best use of your accountant

When you hire a professional consultant, you want to take advantage of the team’s expertise in showing you how to save money and make your business more profitable. You’d rather not have them spend all their time on routine tasks.

That’s why xendoo uses state-of-the-art software that automates many such tasks, from entering sales transactions directly from your bank into your books to coding each entry as it happens so there’s no last-minute rush at tax time. Your accounting team is free to provide you with valuable advice, and you’re free to focus on your core business. Not to mention getting a good night’s sleep.

7 Steps for Retailers to Reduce Inventory Shrinkage

July 1, 2017/in Accounting /by Team

Inevitably, somewhere between the manufacturer and the cash register, some of your merchandise disappears. Every retailer has this problem; in fact, it adds up to more than $42 billion in annual losses nationwide. The three biggest causes of shrinkage are administrative errors, employee theft, and customer theft. Here’s how to counteract them.

1. Use a good inventory management system.

Wherever human beings are doing the counting, organizing, and recording, errors are sure to happen. Choose software that:

Organizes product and vendor information
Integrates with your POS system so that inventory data is automatically updated after every transaction
Generates accurate purchase orders

2. Tighten up your inventory receiving process.

To minimize mistakes:

Cross-check against the PO at the time of delivery
Call the vendor within 24 hours to resolve inconsistencies
Tag and label merchandise immediately

3. Record sales consistently.

Any currently available POS system will do this automatically.

4. Take physical inventory.

It’s the only way to reveal discrepancies between what your inventory software says you have and what you have. Cross-reference the manual counts against software records to see where shortages are occurring, for example with a particular cash register or employee, or during the same shift and day every week.

5. Train employees in loss prevention.

Letting everyone know that you have a strong plan to stop theft can deter both employees and customers.

6. Improve pre-employment screening.

The reality of retail is that employee turnover is high and company loyalty usually low. Besides, employees have less supervision and easy access to your valuables. Do your due diligence in hiring people with no history of dishonesty, including nationwide criminal background checks and verification that resumes are complete and truthful.

7. Install a security system.

Large, visible cameras act as warnings to thieves to pick an easier target. They also help catch and convict criminals after thefts occur.

Inventory shrinkage is a challenge that will never go away. And that means your efforts towards loss prevention can never stop either. Success lies in ongoing processes and continuous attention to keep your merchandise right where it belongs.