Cloud-Based Accounting Services: An Overview of the Benefits

Cloud-Based Accounting Services: An Overview of the Benefits

 

In the simplest sense, cloud-based accounting services like the ones offered by Accountants 2.0 enable businesses to safeguard and store all of their financial data online, rather than using outdated bookkeeping methods. It moves all of your most business-crucial financial data onto the cloud where it’s stored under one umbrella and can be accessed with the simple click of a button.

 

Some of the leading benefits of cloud accounting solutions include:

 

  • Automating Time-Consuming Bookkeeping Tasks

 

One of the foremost benefits of cloud-based accounting services is that they enable you to automate many of those time-consuming accounting and bookkeeping tasks so you can focus human resources elsewhere. Some of these automated features include automatic bank feeds to keep your books up to date.

 

  • Real-Time Data Collection

 

Rather than physically tracking financial data, cloud accounting solutions enable real-time data collection. It also provides up-to-date financial data so you can make the most informed decisions for the short and long term. All of your inventory and pricing strategies can be implemented with the most recent information.

 

  • Easy Access

 

Cloud-based accounting platforms can be easily accessed from anywhere as long as you have a simple wireless connection. This enables enterprises to monitor sales and make business decisions from anywhere without the need to refer to physical copies of data stored at your business.

 

  • Scalability

 

Companies grow and cloud-based accounting solutions can easily scale with such growth to help you meet your business goals for the future. You’ll be able to easily deal with an influx of transactions and other needs as your business grows without having to change service providers or implement new software or hire and train new personnel.

 

  • Easy Integration

 

In addition to being able to offer accounting and bookkeeping solutions, cloud-based platforms can also be easily integrated with your business’s invoicing system, eCommerce platform, project management software, and more. This can help increase efficiency when it comes to payments and customer service and also keeps all of your most important information accurate and up to date.

 

  • Going Paperless

 

With cloud computing financial software you can eliminate paperwork, saving on printing costs and also reducing the amount of time needed to search for financial records. Cloud-based accounting services are equipped with innovative data capture tools, you can simply snap a picture of a receipt and all the important data will be stored in a readable format on the cloud.

 

Contact us for cloud-based accounting services

 

The professionals from Accountants 2.0 can outfit your business with today’s most efficient and effective cloud solutions. To learn more contact us online today or call (888) 857-5750.

by Accountants 2.0

The Ins & Outs of Accounting & Bookkeeping Services for Small Businesses

The Ins & Outs of Accounting & Bookkeeping Services for Small Businesses

As a small business owner, keeping track of all your daily processes can often seem overwhelming, especially if you’ve just started and don’t have the resources other companies do. However, there’s no reason to despair, especially with all the online accounting and bookkeeping firms out there like Accountants 2.0.

Here we cover some of the ins and outs of accounting and bookkeeping services, and how working with our team can help you grow.

Why Bookkeeping is a Must for Small Businesses

Bookkeeping is an integral component of running a small business for several reasons:

  • It Makes it Easy to Keep Track of Profits:

    As your business grows, bookkeeping helps keep track of your progress and profit margin, giving you a clear idea of your financial status whenever you need it.

  • It Keeps You Organized:

    Accounting and bookkeeping services help you keep all of your company’s most important financial information under one umbrella, making it easy to pull things up when needed or perform internal audits.

  • It Provides Better Forecasting Insight:

    When it comes to making short or long-term decisions, having the right financial insight is key. You’ll have all the information you need to make informed decisions about your business’s future.

  • It Helps You Remain in Compliance:

    Another important reason accounting and bookkeeping solutions are a must for small businesses is that it helps them remain in tax compliance by compiling all purchases, gross receipts, expenses, and employment taxes.

Key Components of Bookkeeping

Some of the most important components of bookkeeping include:

  • Sending out invoices
  • Processing and recording transactions
  • Compiling data for basic financial statements
  • Processing payroll payments

Often, if your accounting department is responsible for performing such tasks manually then there’s a degree of human error involved. However, by using bookkeeping and accounting software these processes can be automated, increasing efficiency and eliminating issues.

Using Bookkeeping Software to Streamline Processes

Running an in-house accounting and bookkeeping department can be a costly endeavor, especially if you plan on growing your business in the years to come. As your company grows, you’ll need to hire and train new staff for the accounting department. But working with the Xero Certified team, and Quickbooks ProAdvisors from Accountants 2.0 can make scaling your business easy.

We have all the tools and software to automate processes and find ways you can maximize your returns. Accountants 2.0 also specializes in corporate tax return solutions, self-employed taxes, and more.

Learn more by contacting us online today or calling (888) 857-5750.

by Accountants 2.0

How Much You Should Raise Your Prices

Few business owners enjoy breaking the news of an upcoming price increase. However, when you own a business you have to deal with ever-increasing costs. Although inflation is an unpleasant part of life, it is still part of life.

Price increases are inevitable for a sustainable business. If you want to stay afloat, you’ll have to do them – and regularly. Read on for some tips on how to determine how much you should raise your prices.

Company costs

The type of business you run will determine how much it costs to stay in business. If you’re service-based, you will need to consider what it takes to keep your employees. You’re not likely to deter your customers by increasing prices if you have great people who deliver a service they value.

On the other hand, if your business sells physical products, there’s more to the equation. You have to determine how much more it’s costing you to provide the product. Then, calculate how much more you need to charge to get the same amount of earnings you were before.

No matter what type of business you run, it truly is a numbers game. You’ve got to stay profitable to continue providing goods or services. So calculate the difference and raise your prices accordingly.

Bottom line

There are plenty of other things contributing to profits lately, such as supply chain issues and record low unemployment. When considering a price increase, take a look at your bottom line. Did you make more money this year, or less? If you’re like a lot of businesses, the answer will likely be less.

Delve into your numbers to understand how much money you’re making, and how much money you would like to be making. Plan your price increases so that you can get from point A to point B.

When it comes to shrinking the gap, consider whether you’d rather do one large price increase, or several small price increases. If you need cash right away, you might be tempted to just do one big increase and get it over with. Beware, however, that this tactic has the potential to scare off customers and send them to your competitors in search of a better price.

Weigh the potential loss of customers against the revenue from a price increase. Ideally, the increase will cover the few customers who might go elsewhere.

No matter how you do it, make sure you communicate your intentions kindly and clearly. If you have a loyal customer base, they will likely understand and continue coming to you.

See what your competitors are doing

Do your research to find out what your competitors are up to and how they’re handling price increases. Check in with them regularly to make sure you’re staying on par. You don’t want to become too cheap or too expensive.

If you don’t raise your prices along with the crowd, you run the risk of becoming the cheapest option. That tends to cause a reputation of having the worst quality. Get too far ahead, and you’ll price yourself out of the market.

Consider the rate of inflation

Once you know how much you need to keep up with costs, maintain your bottom line, and match your competitors, look at the rate of inflation. A good rule of thumb is to increase your prices by 5-10% yearly to keep your real earnings the same. However, it’s been a wild year inflation-wise and this percentage may vary.

Final thoughts

It can be intimidating to raise your prices because you don’t want to lose customers. However, if you don’t stay on top of it, you risk losing profits or in the worst case scenario, your business. Do your research to make sure your price increases are fair and communicate them well. That way, you can continue to provide excellent services and products to your customers for years to come.

Contact us today or call (888) 857-5750 for expert guidance on determining the right price increases for your business. Ensure profitability while effectively communicating changes to your customers. Stay competitive in the market. Get in touch now!

by Accountants 2.0

5 Common Payroll Implementation Errors You Can Easily Avoid

Upgrading or changing your payroll system comes with a ton of wonderful benefits. Saving time and money, making everyone’s lives easier, and better integration are all good reasons to consider a change.

But if the switch is mishandled, the results can be catastrophic and lead to long-lasting problems. Read on for some tips on how to avoid a disastrous payroll system migration.

1. Give the project the time it needs

It’s true that people may enjoy coming to work. But for most people, earning money is the main reason they seek out employment. Our jobs make the world go round, and support us and our families so that we can afford everything else in life.

Not getting paid, or getting paid incorrectly, is a massive problem for your employees. As a business owner, you want to make sure your employees are paid right and paid on time. This protects your business, but it also protects their happiness.

Changing payroll systems is a huge undertaking. There are many moving parts and people who will be affected. Make sure to give this project the time and attention it deserves.

Determine what will be necessary to make the transition, understand who it affects, and communicate with everyone involved. The planning process is critical. Treat it as the foundation to making the switch, and the rest will fall into place.

2. Map out integrations

All payroll software will do the basics, but that’s just the beginning of your new system. Learn about what other software will integrate with your new platform. Do your research for what add-ons you will need, and build accordingly.

Your new system will be able to connect with HR software, advanced accounting functions, time tracking tools, and so much more. Envision what your complete system looks like and understand how to get it to all work together.

When you have the full picture from the planning stage, it will make the transition a lot smoother.

3. Adjust the platform to your needs

The main motivation for implementing a new payroll system is to make things easier. Yet, many businesses overlook the ways that their new technology can help. It’s easy to lean on old methods for getting things done because they’re familiar, but that would be a mistake when switching to a new payroll system.

Make sure you know about and understand the features of your new platform. This is where the real time, money, and energy savings will come in. Automate anything you can. When these tools prove their worth, your team will understand the reason for switching.

4. Don’t bring over bad data

When implementing or switching to a new system, take the opportunity to go over your incoming data. Yes, all of it. Get rid of what you don’t need, while keeping in mind what you have to keep on hand according to any relevant tax agencies.

While payroll software is incredibly helpful, it can only do so much. If you put bad data in, it will spit bad data out. Go over the information you’re inputting with a fine toothed comb to get the best result.

5. Test, test, test

This phase is critical, and is often overlooked. Before you officially implement anything, make sure to test it out. There’s no quicker way to turn your staff off of something new than for it to work poorly or not at all right out of the gate. Take the time to test now and reap the benefits when you go live.

Final thoughts

Deciding to change your payroll system is a big undertaking. But with some planning and preparation, it can be a smooth and rewarding transition. Get in touch if you’d like to learn more about how we can help make payroll easier for you.

Contact us today or call (888) 857-5750 to discover how we can assist you in simplifying your payroll process and ensuring a seamless transition to a new system

by Accountants 2.0

How to Improve Your Inventory Process

A business that involves inventory is exciting to set up, but it also comes with its share of challenges. It’s easy to become overwhelmed by inventory management. Adopting some helpful tools and strategies will make the inventory management process much easier.

Read on for some tips on how to improve your inventory processes.

Use barcodes

It’s typical for a small business to start out with simple price tags because they’re inexpensive and relatively simple. Something quickly stamped out of a pricing gun or even handwritten is common. However, there will come a time when this practice starts to hurt you.

The margin for human error is large, both when making the labels and when ringing customers out. It’s wise to adopt a barcode system for items so that they can be accurately scanned. It also makes counting inventory easier when you can scan each item instead of reading every tag.

Keep things in order

This applies to your physical inventory and your records. A messy storeroom or warehouse is a surefire way to lose track of items. Take the time daily, weekly, and monthly to complete housekeeping tasks that make counting and locating items easy.

However you keep your records, make sure everything is in order there, too. Go over your paper trail regularly to make sure your numbers match what you physically have on hand. Waiting too long can mean your numbers get too far out of whack–and can mean you have more difficulty determining what’s gone wrong.

Additionally, get in the habit of adopting a policy of “first in, first out.” This ensures that what you’re selling is current or fresh. It also allows you to identify what items are flying off the shelves and which are gathering dust.

Fine-tune your software

Choosing inventory management software is a crucial step in getting your business in order. It will also make your life easier.

Today’s inventory management systems are straightforward, easy to set up, and easy to use. Adopting one will quickly pay for itself in the time you save and headaches you avoid.

Once you’ve settled on a system, set it up so that it works well for your business. Most have tools built right in that can be set up to meet your unique needs. Use what you need, forget what you don’t, and get on with more important tasks.

Make access easy

Your stock levels should be easily viewable from your POS system, even if you have multiple warehouses or storefronts. This allows your employees to better serve customers. It also makes it easier for your inventory manager to see what’s needed without having to physically go check.

Invest in your staff

Even if you have the perfect software set up and your stock room is immaculate, you will experience shortfalls if your staff doesn’t know how everything works together. Take the time to ensure everyone understands inventory movements – and how to identify and reconcile discrepancies.

This training makes your job easier and saves your bottom line. It will also save your staff from the frustration of not knowing where or how to find an item. It also means you have what you need on hand, which makes your customers happy and earns money.

Final thoughts

Especially when you’re starting out, it can seem like overkill to adopt robust software and equipment to manage your inventory. However, when you develop these tools early on, you will find your business is easily scalable and that you save a lot of time and money. Get in touch with us or call (888) 857-5750 to learn more about how to improve your inventory processes.

by Accountants 2.0

Employee vs Contractor – What You Need to Know

Depending on the nature of your business, you may have workers who are employees or contractors, or you may have both. Each has their merits, but it’s important to review which are which in order to meet your tax obligations.

When you have an employee, you must withhold income tax as well as report on additional benefits. Contractors generally look after their own tax obligations.

It’s against the law to treat an employee as a contractor. Significant penalties apply if you do, so it’s important to get it right.

The simplest way to remember is:

An employee works in your business and is part of your business.
A contractor is running their own business.

But how can you be sure that you’ve got an employee or a contractor on your hands, especially with remote work blurring the lines between employees and contractors?

Does there come a point that you should actually be hiring a worker as an employee, when you thought they were a contractor?

There are six factors to consider:

1. Ability to subcontract or delegate

An employee is not able to subcontract or delegate the work. They must perform the outlined tasks themselves. If they can’t do the work themselves for any reason, say a prolonged illness, and someone else does it, this is substitution. Your business would then pay the other person to carry out those activities.

A contractor can delegate the work as long as they’re not obligated to do it themselves as per the contract. If your contractor can’t work, they would arrange for another qualified person to do it. You would pay your contractor as usual, who would then pay their subcontractor.

2. Basis of payment

An employee is paid a set amount per period of time. The most obvious example would be an annual salary or hourly wage.

Some employees are paid piece-work rates. They receive an amount per successful sale, or per the number of pieces produced. A commission basis would be a price per item structure.

A contractor, however, is paid an agreed-upon price in exchange for a predetermined result. Some contracts may specify the amount to be paid in increments as stages of the project are completed. But the key takeaway is that a contractor is paid when the agreed-upon result is achieved.

3. Equipment, tools, and other assets

If your business is responsible for providing the equipment, tools, and other assets required to perform the job, that’s characteristic of an employee.

If the worker is providing these items, they are likely a contractor.

4. Commercial risks

Employees do not bear commercial risk and they are not liable for correcting any defects in the work at their own expense. Instead, your business takes this responsibility. The worker will be paid for the time required to perform the task to completion.

A contractor assumes the commercial risk. They are responsible for fixing any mistakes on their own time. This extra work would fall under the umbrella of the terms set at the beginning of the project. Your business does not have to pay for any extra time taken or materials used, unless otherwise specified in the contract.

5. Control over the work

Employees have to complete the work the way the employer specifies. What work is done, where it’s done, how it’s done, and when it’s done are all up to the employer. The employee then completes the work as required.

Contractors are not subject to the same rules. They decide when and how the work is done, so long as it meets the obligations laid out in the contract. For example, a contractor could choose to work three 10-hour days to complete a job, rather than working four 8-hour days.

6. Independence

An employee works within a business. They complete tasks as required until they leave the job.

A contractor operates independently and may have any other number of contracts on the go with other companies. They can freely accept and refuse other work. Their obligation is complete when they deliver the specified outcome.

Final thoughts

It can be confusing to make the determination between an employee and contractor, but it’s important that you do so in order to meet your tax obligations and play by the rules. Contact us online today or call (888) 857-5750 to learn more about your tax obligations for employees and contractors. Don't risk penalties - reach out to our experts now!

by Accountants 2.0

Underused Housing Tax in Canada: What You Need to Know for 2023

Are you a non-resident of Canada who owns vacant or underused housing in the country? If so, you may be subject to a new annual tax called the Underused Housing Tax (UHT). But even if you're a Canadian citizen, resident, or corporation, you may still need to file a UHT return for each of your residential properties. Here's what you need to know about the UHT for 2023.

What is the Underused Housing Tax?

The UHT is a new tax that was introduced in Canada on January 1, 2022. Its aim is to encourage non-residents to make their vacant or underused housing available for rent or sale, which could help alleviate Canada's housing affordability crisis. However, there are situations where Canadian citizens, residents, and corporations will also need to file UHT returns.

Who Needs to File UHT Returns?

If your name or your business's name is on the land title of a residential property in Canada, you may need to file a UHT return. This applies to non-residents as well as Canadians. The UHT return is a 6-page document that asks for information such as the property's location, type, and ownership structure, as well as its occupancy and use during the year.

When Are UHT Returns Due?

UHT returns for the 2022 calendar year were due by April 30, 2023. However, the Canadian government has recently announced that it will waive penalties and interest for late-filed returns and late-paid UHT payable for the 2022 calendar year, provided that the return is filed or the UHT is paid by October 31, 2023.

What Happens If You Don't File a UHT Return?

Failing to file a UHT return on time can result in penalties. For individuals, the penalty for late filing is $5,000, while for corporations, it's $10,000. If you receive a late-filing penalty, you'll also be charged interest on any outstanding UHT payable.

To learn more about how Accountants 2.0 can help streamline your accounting processes and save you time and money, contact us online today or call (888) 857-5750.

The Underused Housing Tax is a new annual tax on the ownership of vacant or underused housing in Canada. While it's primarily aimed at non-residents, Canadians may also be required to file UHT returns for their residential properties. If you're subject to the UHT, it's important to file your return on time to avoid penalties and interest charges.

You can find more information on the Underused Housing Tax in Canada at https://www.taxtips.ca/real-estate/canada-underused-housing-tax.htm and on the official Government of Canada website at https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html. 

Remember, if you're subject to the UHT, it's important to file your return on time to avoid penalties and interest charges. And the deadline for filing UHT returns for the 2022 calendar year has been extended to October 31, 2023.

by Accountants 2.0

Keeping Your Accounting & Bookkeeping Up to Date: 5 Key Tips!

If you want to ensure that your accounting details are always accurate or be able to provide financial updates to partners, one of the best ways is to implement the proper accounting and bookkeeping services.

However, for some, this might seem easier said than done, which is why the Quickbooks ProAdvisors from Accountants 2.0 have collected some easy tips for you here!

Organization is Key

 When it comes to your finances, the more organized you are the better oversight you’ll have into all of your financial processes. Whether you’re using accounting software or manually maintaining your accounting and bookkeeping, it’s important to keep everything in one place and make everything easily accessible. This should include important items like receipts, invoices, petty cash accounts, etc.

 Make it a Habit

 The easiest way to keep track of accounting and bookkeeping is by making it an integral part of your daily, weekly, and monthly processes. Schedule a specific time of day or week when you sit down and review all of your company’s financial statements and ensure your books are up to date. Doing so will not only ensure you don’t miss anything but also provide insight into how your business is doing on a monthly basis.

Put Time Aside to Reconcile Your Books

 Piggybacking off of the point above, putting time aside to reconcile your books is also important. Match your transactions with the entries in your books and ensure that there are no issues. Additionally, be sure to keep track of anything that is still being processed or invoices that are ongoing, such as regular payments to vendors, etc.

Utilize Bookkeeping Software

 Bookkeeping software makes it easy for you to track every aspect of the accounting process, in addition to saving time, manpower, and money. This is because today’s leading bookkeeping software enables the easy use of automation for payment processes, provides alerts, and much more. You’ll have all of your most important financial information under one umbrella that can be easily accessed from anywhere with a simple wireless device.

Enlist the Services of a Professional Bookkeeper

 If you’re unsure about maintaining your own financial records, or you know your books and accounting processes need to be updated, enlisting the help of a bookkeeper is easy and can save loads of time. A professional bookkeeper can reconcile accounts, and implement cloud software that provides automation for your most important processes, in addition to offering invaluable financial advice.

Contact our Quickbooks ProAdvisors today for accounting and bookkeeping services!

To learn more about how Accountants 2.0 can help streamline your accounting processes and save you time and money, contact us online today or call (888) 857-5750.

by Accountants 2.0