Small-business owners need to have a constant handle on their finances, as an issue with bookkeeping can lead to serious litigation. Small business insurance is a layer of security firm owners will always need, but it’s also important to learn about how issues with taxes can seriously impact the company’s bottom line.
What are small-business owners doing wrong?
Running a small firm is often difficult, and company owners have to wear many hats. Carrying out several roles can make it hard to properly keep track of finances. A new survey from Xero, an online accounting software provider, revealed the most glaring errors small-business owners can make is getting behind in their financial records.
How can small-business owners improve accounting practices?
There a number of different ways owners at small firms can better manage their finances. One of which is purchasing a cloud-based solution. According to 72 percent of accountants who took part in the survey, they would be able to provide their small business clients with better advice if they were able to access their day-to-day budgeting solutions.Forty-three percent said they plan plan to offer services in the cloud this year.
“More and more small businesses are realizing the benefits of real-time access to their financials,” said Jamie Sutherland, president of U.S. operations at Xero. “And our survey provides validation on the importance of cloud-based offerings. We saw impressive adoption in 2012 and expect to continue to grow rapidly.”
The cloud creates efficiencies
Many small-business owners may be scared to deploy the cloud due to security concerns and potential high costs, but USA Today stated many firms are becoming more productive because they’ve harnessed the power of a virtual environment.
Many accountants want their clients to move to a cloud-based environment because it allows for better collaboration and improved communication, said the news source.
“It’s about the whole concept of having one ledger,” Michael Hsu, founder of Deep Sky Accounting, told the news outlet. “You have one thing in common, and you’re just editing it. Back in the old days, you send it back and forth with clients. Now all of us can work together.”
