5 Important Things to Do After Tax Season for Small Business Owners

Tax season may be over, but your responsibilities haven’t ended just yet. Here are some of the best tips for keeping taxes a priority for your 365 days a year.

  1. Use the right business cloud accounting software. One of the best ways to stay on top of your taxes is to use business accounting software. By investing in accounting software, you won’t have to worry about untracked expenses or missing documents.
  2. Track your spending and have regular budget check-ins. Aim to track all your spending throughout the year so that none of your fixed and variable expenses are hard to pin down once tax season rolls around. If you don’t track your spending and expenses, you could be hit with fines later, or you may lose sight of possible deductions when filing your taxes.
  3. Keep important deadlines top of mind. If you want to have monthly or quarterly expense check-ins, keep those on a calendar, and set deadlines for when you want to track your expenses. Keeping critical dates and deadlines organized will help you at tax time.
  4. Separate personal and business finances. Keeping the corporate veil intact is important from a business management perspective. When the two parts are separated, it will be easier to track your business’s expenditures and revenues, in addition to measuring growth.
  5. Cycle old files into storage. You’ll find it easier to keep track of your business’s financial records if you cycle through them on a yearly basis. Storing a year’s worth of records in storage every tax season will keep your workspace decluttered and force you to stick to a yearly filing system, keeping disorganization at bay.

The new tax year is upon us, so taking the opportunity to streamline your bookkeeping will help you seriously de-stress. We can help you get started on the right foot — your future self will thank you.

Is Outsourcing the Right Option to Grow Your Business?

Outsourcing helps you abandon the mindset of “I can do it all myself” and offload boring back-office tasks and hand them over to professionals with better expertise and reasonable costs.

Before outsourcing, consider:

  • If you can afford and have the monthly budget of the services
  • If the costs incurred by outsourcing benefit the business in any way
  • If you are equipped to handle the task on your own
  • If outsourcing helps you focus on the strengths of the business

Here are the advantages of outsourcing:

  1. Increased productivity. Many entrepreneurs think they can do everything, but by eliminating the most time-consuming tasks, you can focus on tasks that make a huge difference in meeting the goals of your business.
  2. More time. Time is a limiting factor, you can spend your valuable time dealing with more important tasks like providing the best customer service and improving your ROI rather than wasting your time managing your bookkeeping.
  3. Expert services. Outsourcing allows you to hire an expert for a specific task without dealing with the risk of degraded quality. By outsourcing the right work to more qualified professionals, the books are handled timely and accurately than if business owners handled the same thing themselves.
  4. Cost-effective. Recruiting and training people is expensive and time-consuming; there are other hidden costs to consider as well. You will be able to harness the expertise of a professional without breaking the bank or incurring high overhead costs.
  5. Investing in other growth areas. Comparatively, it is much more affordable to get a task done by a professional externally rather than paying a monthly salary to a hired professional within the business. This increases your budget in other areas.

Outsourcing can bring significant benefits to the business. If you’d like to learn more on how we can help take managing your business finances off your plate and help you grow your business, schedule a call with us today!

5 Financial Reports You Should Track For Your Business

There are a number of financial reports that can give information on the business’s past, current, and future financial state. The top five financial reports that every business owner has to regularly and yearly review to better understand the business’s financial performance are listed below.

  • Balance Sheet. It provides a snapshot of a business’s financial position, including the economic resources the business owns or owes and the sources of financing for those resources.
  • Income Statement. It summarizes the total revenues and expenses incurred by the business, showing the profitability (net income or net loss) over a specified period of time, usually a month, quarter, or year.
  • Cash Flow Statement. It is presented in three sections: operating, financing, and investing activities, and it indicates which areas of the business are generating and using the most cash. One of the best uses for the Cash Flow Statement is to estimate future cash flow, which will assist with budgeting and decision-making.
  • Accounts Receivable Aging Report. It categorizes outstanding accounts receivable into groups based on the due date of the invoice, typically current, as well as 1-30, 31-60, 61-90, and >90 days overdue.
  • Budget vs. Actual. It can help identify areas that were over or under budget, indicating the ability to hire additional employees. The Budget vs. Actual Report should be prepared on a monthly basis and reviewed with the financial statements to determine if any areas of the business are not meeting expectations and should be investigated further.

We consistently provide timely and accurate financials and reports (like the ones mentioned above) on a monthly basis, as well as the actionable financial analysis you need to effectively run your business, analyze operations, and guide business decisions. If your business needs support, contact us today to schedule a consultation.

What Is A CFO?

What Is A CFO?

As a business owner, do you know the difference between a CPA (Certified Public Accountant) and a CFO (Chief Financial Officer)?

In the finance world, there are a lot of terms thrown around that even those who run a business sometimes don’t fully understand. And there’s no shame in that! You started your business because you’re passionate about your particular industry, and sometimes there’s just no time to brush up on all the financial jargon.

However, if you’re looking to take more control of your business’ finances, or would just like to be more “in the know” about what’s going on financially, these are important terms to be familiar with and know the differences between. Here’s our breakdown:

Chartered Professional Accountant (CPA)

To put it very basically, CPA is a professional designation for accountants in Canada, with CPA Canada being the organization that represents the profession. When an accountant has CPA after their name that means they have completed:

  • a university degree (or equivalent);
  • a couple of years of practical work experience;
  • and professional level exams in order to receive the CPA designation.

In addition to this, an ongoing 40 hours a year of professional development is required to maintain the CPA designation. In other words, if you’re hiring a CPA in Canada, you can pretty much guarantee you’re hiring someone incredibly knowledgeable and trustworthy! They’re someone you know you can rely on to provide the best advice on how you should reach your short and long-term goals or improve your financial results.

What Does a CPA Do?

We’re of the mind that most businesses can highly benefit from having a professional accountant on their team, whether that be someone who can be visited in-person, or a virtual accountant, like us!

Having an accountant oversee your finances gives you more insight into your business, equipping you with the knowledge and confidence to make better, more solid business decisions.

A CPA can help you identify problems before they become serious, and in times of financial difficulty, they’ll be able to help guide you with expert advice. Plus, in the event of an audit or other challenges, you can be certain that your accountant will have all the detailed records you need to make your way through. And do you absolutely dread tax time? Well, a CPA can help you out there too! Taxes are one of the main things for which CPAs are hired to handle. We’re basically tax wizards!

Even though adding an accountant to your team is an expense, in the end, it can save you a ton of money and trouble.

When To Hire a CPA

You don’t need a large business in order to work with a CPA. In fact, a CPA can be useful for any size of business, especially for those just getting started who require start-up counselling, need help putting a business plan in place, or need help securing financing.

CPAs are hired by people in government, education, not-for-profits, and the public sector. They are also more affordable for smaller companies to work with, whereas a CFO can be more costly.

Chief Financial Officer (CFO)

A CFO, or Chief Financial Officer, is a senior-level executive in a business who manages the finances, promotes financial stability, and encourages fiscal success.

What Does a CFO Do?

A better question might be, what doesn’t a CFO do? Because when it comes to a company’s finances, they pretty much do it all!

A CFO oversees a business’s daily financial operations, resource allocation, and changes to capital and profit. They work with the finance and accounting department to predict the effects of operational decisions, providing strategic advice on the efficiency of expenditures as well as anticipating and promoting future trends. To ensure the company is within budget, they also manage and approve their organization’s financial decisions.

These are just some of the things a CFO does. However, the specific duties and responsibilities vary slightly depending on the company they are working for and the size of the budget. For a list of all possible tasks a CFO can perform, click here!

When To Hire A CFO

Deciding when to hire a CFO can be tricky. Hire one too soon, and you may not be able to afford them—hire one too late, and you may miss out on chances to push your business forward.

Typically, CFOs aren’t hired by smaller businesses. Most businesses do not hire CFOs until they’re making $50 million in annual revenue. At least, not in-house!

But what if your business isn’t yet big enough to warrant or afford an in-house CFO, but you’d still like to bring one on for your growing business, or to help manage persistent challenges? That’s where an outsourced or virtual CFO can help… and yes, The Number Works offers this service!

Virtual CFO Services

A virtual CFO is a great choice for smaller but growing businesses who’d like some of the advantages of a CFO, without the hefty price tag.

While a virtual CFO won’t physically be in-office with you, they’ll always be one phone call, Zoom chat, or email away! And as your virtual CFO, our number one goal is to help you grow your profits so you can continue to “level up” your business.

If you’re wondering if our virtual CFO services could be a good fit for your business, don’t hesitate to contact us for a FREE 30-minute consultation!

Think a Virtual CFO or CPA is Right For You?

If you’re looking for a virtual CFO or virtual CPA for your business, we at The Number Works are willing to answer the call!

Located in Hamilton Ontario, we’re a virtual financial coaching and accounting firm that is passionate about partnering with small businesses and creative entrepreneurs who are looking to grow their businesses and profits.

If you feel like a virtual CPA or a virtual CFO is something you could benefit from, get in touch with us today. Let’s talk!

Important Tax Information for the 2022 Tax Filing Season

Important Tax Information for the 2022 Tax Filing Season

Have you left your taxes to the last minute? If so, you’re not alone!

April is usually our busiest month here at The Number Works. We get many last-minute calls from people looking for assistance with their income taxes. Of course, we’re already hard at work for our usual clients, but we always try to help as many people as possible.

If you’ve been putting off your taxes because you’re too busy or stressed out, we strongly recommend that you start immediately. Why? Because some deadlines are coming up fast, and you do NOT want to miss them!

Upcoming Important Tax Deadlines

Unfortunately, you may have already missed some important tax dates throughout March, such as the deadline for contributing to your RRSP or your first installment payment due date. However, the most important dates are post-March:

  • April 30th – Deadline for filing your tax returns and paying the balance due.
  • June 15th – Deadline for filing self-employed tax returns (balancing owing still must be paid on April 30th).
  • June 15th – Second installment payment for 2022.
  • September 15th – Third installment payment for 2022.
  • December 15th – Fourth installment payment for 2022.

Your Tax Return To-Do List

If you’re handling your taxes yourself this year or you have paid someone to do them for you, here are the things that you need to keep in mind.

Check Your CRA Account

While CRA accounts are extremely secure, there have been security breaches in the last few years, resulting in some accounts locking down. If this happened to you in the past, you likely already know it by now. However, if there is another security breach or something has gone wrong with your login or personal information, it’s better to find out ASAP. You don’t want that kind of stressful situation at the end of April when you file!

If you don’t yet have an online CRA account, we highly recommend signing up for one. Not only is it the easiest way to file your tax returns and provide your payment, but it’s also a one-stop-shop for many of your important financial documents.

If you need to check a previous year’s tax returns, they’ll be there. Want to know your refund status? It will be right at the top of the page! Setting up your account is easy as well, as you only need many of the same documents you need to file your taxes (see list below).

Keep Important Documents On Hand

Whether you’re doing your taxes yourself or hiring an accountant to do them for you, there are some documents and information that you’ll need:

  • Social insurance numbers for you and your family members
  • Net income
  • Spouse’s net income
  • Dependants’ net income
  • Dates of birth for family members
  • 2020 notice of assessment
  • Total number of installment payments to the CRA
  • Income slips (T3, T4, T5, and others)
  • All expenses
  • Slips applicable to your specific situation

Set Aside Some Time

The most challenging part of doing your taxes returns is usually starting them. Once you have begun, it’s usually simply a matter of simply plugging numbers in. The trick is getting started!

Our advice would be to look at your schedule and book a time to do your taxes, just like you’d schedule in any other event. Treat it as an unmissable appointment.

If you aren’t planning on doing your taxes yourself, you must contact your accountant—or whoever is handling them—as soon as you can. The end of the month is rapidly approaching, and time is needed to complete them.

You can call us at The Number Works to see if we have time to complete your taxes, but with all of the calls we’ve been fielding recently, we cannot guarantee that we will be able to have them done by April 30th. In other words, call us as soon as possible!

The Number Works has worked with small businesses and entrepreneurs in the Hamilton community for years to help get them the maximum refunds possible. We know all of the possible deductions and credits, which is why people come to us for help with their tax returns.

The tax deadline is rapidly approaching, but if you wish to find out if we can help you, please feel free to get in touch with us today!

Running Reports in Quickbooks

Running Reports in Quickbooks

How much insight do you have into your business’s finances?

At The Number Works, we work hard to ensure that our clients completely understand their businesses’ financials and that they’re fully aware of what is happening with their bottom line.

But what if you’re going at it alone without an accountant, bookkeeper, or other financial professionals? How can you get the kind of financial insights that you need to grow your business?

Let us introduce you to a powerful QuickBooks Online feature that can help you keep your finger on the pulse of your finances: Reports!

QuickBooks Online

Suppose you currently handle your finances through Excel spreadsheets and put your business receipts in a box. In that case, it’s definitely time for a significant upgrade in the way you manage your financial information!

There are many online accounting systems that can help you make this upgrade, but our favourite, by far, is QuickBooks Online (QBO).

In our opinion, QBO’s cloud-based service offers business owners the best mix of features, ease of use, and affordability. As everything is hosted in the cloud, you can access information about your business’s finances on any device that has an internet connection. And with its flexible plan structure, you can pick the version of QBO that best meets your needs and budget!

QBO Reports

There are over 120 reports that you can run through QuickBooks Online, depending on your plan. These reports can offer you insights into almost every aspect of your business, including:

  • Sales
  • Purchases
  • Inventory
  • Banking
  • Payroll
  • Accounting
  • Budgets
  • …And many more!

Many businesses will only use a small number of these reports, while others might use all 120. The best part about QBO is that you can customize your Reports Center to only see the reports that apply to your situation.

How to Run a Report

To get started, click on the Reports option in the sidebar. You’ll then need to pick one of the categories. At the top of the screen, you’ll see several options, including Standard, Custom, and Management. After you’ve learned how to set up reports, you can focus on these other options. For now, select Standard.

This is the area where you select the type of report you want to run. If you wish, you can click on the Star next to a report, and it will appear in Favorites at the top of the Standard report page for easy access.

Once you’ve selected a report category, it will appear on the screen. To update your report at any time, you can click on “Run Report.”

Customize Your Reports

From here, you have many options for customizing the information you see in your chosen report.

For example, you can select a date range at the top for your report from the presets, or you can choose “Custom” if you only want to see a specific set of dates.

You can also select either accrual or cash-basis accounting. You have the option to compare your current report to a previous period or customize the report so you won’t need to see any rows that contain zeros.

At the top of the report, you can select how you want the information sorted, along with adding notes. Notes can be an invaluable feature if you plan on sharing reports with an accountant or bookkeeper.

If you click on the “Customize” option to the right, you can pick more specific options, including filters. You can then save all of these customizations, allowing you to access your customized reports from the Reports menu in the future without needing to alter any of the settings!

Creating reports is easy, but the tricky part is understanding them. That’s where The Number Works comes in! We can help you get a better handle on your business by teaching you how to interpret the numbers to ensure you know the state of your current finances.

The Number Works also helps small business owners learn how to use some of the more complex features of QuickBooks Online, including reporting. If you’d like to learn more about QuickBooks Online and how it can help you grow your business, please feel free to get in touch with us today!

Getting to Know Your Financial Statements

Getting to Know Your Financial Statements

Are you aware of the state of your small business’s current finances?

If you run a business, learning how to read financial documents accurately is key to financial health! You need to know exactly where your money is going to and coming from, giving you the knowledge to cut unnecessary costs and find new sources of revenue.

Of course, not everyone is a professional bookkeeper or accountant, so many people need financial information to be presented in a way that is accessible and easy to absorb.

Here are the different types of financial statements that you need to know about in the world of business:

Different Kinds of Financial Statements

Income Statement

Simply put, this statement shows the amount of revenue that a business is generating within a specified period. It could be monthly, quarterly, or annual. If you’re looking to see your profits and losses, then your income statement will be your first stop!

A few of the aspects of your income statement you want to explore are:

  • Your Gross Revenue/Gross Sale – The amount of money you’ve made in a set period.
  • Your Returns and Allowances – The money that you stand to lose because of sales and other discounts.
  • Your Net Revenue – How much money you have after subtracting your returns and allowances.
  • Your Operating Expenses – How much money you spent to keep your business running (rent, wages, supplies, etc.).
  • Your Cost of Goods Sold – How much you spend to purchase your inventory.
  • Your Income Tax – How much you must pay in taxes to the government.

This is just a selection of the points you can explore in your Income Statement. If you’d like some assistance going through the entire document, we’d be happy to help!

Cash Flow Statement

Your Cash Flow Statement should tell you how much money is going in and out of your business over a period of time. It’s usually divided into three parts:

  • Investing Activities: Tracking the losses and gains of your business’s investments.
  • Financing Activities: Tracking the equity and debt of your business.
  • Operating Activities: Tracking the money and expenses covering your business’s operations.

Balance Sheet

Your Balance Sheet is an overview of everything your business holds, including your liabilities, assets, and equity. Your total assets should equal your liabilities and equity to ensure your financial health.

  • Liabilities: Debts that your company took out to pay for your expenses. These can be long-term (mortgages, business loans) and short-term (operating expenses, payroll).
  • Assets: Items of value that are owned by your business. These can be long-term (equipment, property, investments) and short-term (cash, inventory, securities).
  • Equity: This is the amount of money that currently belongs to you/your shareholders as the owners of your company.

How Quickbooks Online Can Help

The secret of generating accurate and concise financial statements for yourself and your business is to have all of your financial information kept in a single, safe place. If you need to pull data from several different sources, getting a complete picture of your financial health will be a huge headache.

However, everything you need is right there when you use an accounting program like QuickBooks Online! Once you’ve set it up for your business, it keeps track of everything, including your income, cash flow, costs, all in and outgoing invoices, and much more.

The main thing that keeps small business owners from using QuickBooks Online is a fear of a steep learning curve. Surely a comprehensive piece of accounting software is only meant for professionals, right? Not at all!

The beauty of QBO is that anyone can use it, no matter their level of financial literacy. In fact, by learning how to use this software, you’ll be teaching yourself how to better understand financial statements as you go, putting yourself in a much better position to run your business.

In addition, as QBO tracks all of your financial info in real-time, you can check in on your financial health whenever you want. This feature makes QBO an incredible resource for those looking to automate their financial reporting!

If you’ve never used QuickBooks Online before, we at The Number Works would be happy to help train you to use it. We’ve worked with many individuals and businesses across Ontario to teach them to use QBO to keep track of their financial health. So, if you’re interested in setting yourself up for financial success in 2022, don’t hesitate to get in touch with us today!

2022 Is the Year to Upgrade to QuickBooks

2022 Is the Year to Upgrade to QuickBooks

Are you ready to make some changes to your business in the New Year?

When it comes to New Year’s resolutions, there’s an old joke that no one can remember their resolutions by February. The reason why is because most New Year’s resolutions are more like wishes than they are goals with strategies behind them. If you’re going to make some positive changes in the new year, you need a goal with a plan, not a resolution!

If you’re a small business owner, you might “resolve” to better manage your finances in the new year. But to do it properly, you need the right tools. Some people decide to hire a bookkeeper or accountant to manage their books, but if you want to do it yourself, a tool like QuickBooks Online is invaluable and can help set you up for success in 2022!

Why QuickBooks Online?

Though there are many different kinds of accounting software out there, we at The Number Works prefer QuickBooks Online. Our preference comes from working with many small businesses over the years and helping manage their finances.

Simply put, QBO offers the best mix of financial management tools at an affordable price. It’s not endlessly complicated, so anyone can learn to use it effectively. And most importantly, it offers increased functionality depending on your needs. In other words, QBO’s features can grow with your business.

QuickBooks Online Packages

For a small business just starting out, we would recommend the EasyStart package. It includes everything you need to run the basics of your business’ finances. With EasyStart, you can begin to keep track of everything you need to maintain the health of your books!

If you’re a more established small business, then the Essentials package might be a better fit for you. It includes everything in the EasyStart package but also allows for billing and payment management, multi-currency support, time tracking, and multiple users.

Finally, if your small business is rapidly growing and you need more complex features, the Plus package can help. It includes project profitability—a significant benefit if you’re working on a few new projects—and inventory tracking, which is super helpful if you run any kind of online or brick-and-mortar store.

How to Set Up QBO for Your Business

After a very busy December, the last thing you might want is to spend time getting a brand-new QuickBooks Online account set up. But believe it or not, it’s incredibly straightforward.

All you need to do is import your business’s financial information into QBO. That should include your bank accounts, credit cards, regular customers, etc. Once that information is in there, all of these accounts will automatically update, meaning that you’ll never need to manually input data again. That’s a major timesaver!

But What About Once You’ve Set It Up?

When we speak with our clients about using QBO, it isn’t the setup that worries them, it’s the multitude of features that they might not know how to use. Fortunately, we’re here to help!

Teaching small business owners how to use QBO and customize it for their business is part of what we do here at The Number Works. Of course, as a small business owner, you might only use a few of the many features that QBO offers. But there are big benefits for those who invest time into learning the ins and outs of the program.

With our small business experience, we know exactly where you can get the best bang for your buck out of QuickBooks Online, and can show you where you should put your attention. As accountants, we can’t tell you how much easier our job is when all of the financial information for a company is kept in one place. When stored in QuickBooks Online, it’s in the Cloud. That means there’s never any danger of losing information in the event of a hard drive failure or accident. So long as you have your login information, you can get access to your finances on any device, whether that be a desktop, phone, or tablet!

To learn more about how The Number Works can teach you how to set up QuickBooks Online this year, please feel free to contact us today! Together, we can prepare your business so your 2022 is much more organized than your 2021, setting you up for success in the new year!

Worried about getting your books cleaned up by the end of the year? The Number Works can help!

Clean Up Your Books Before the End of 2021!

Are you already thinking about buying presents for the holiday season? If so, you should probably be thinking about your books too!

When you’re a small business owner, a year can pass in what seems like the blink of an eye. One moment, you’ve just finished cleaning up your books at the end of the year, the next moment… hey, it’s December! Time to do it all over again!

If you’ve only just realized how far behind you are at preparing your books for the end of the year, don’t worry, there’s still plenty of time to get everything in order!

Keep Your Accountant in the Loop

If you work with a professional to maintain your books, then it’s vital they have every important financial document in their possession by the end of the year.

Here at The Number Works, we work very hard to ensure that our clients’ books are in top shape year-round, but that’s only possible if we are in constant communication.

If you only speak to your accountant once a year, they might be missing vital documents they need to do their job. A professional accountant or bookkeeper should always keep you in the loop about your business’ financial health, but it’s up to you to supply the documents they need to determine it!

The upside of keeping in close communication with your accountant is that if there are any problems with your finances, they’ll know immediately and can handle the situation quickly and professionally.

Generally, your accountant should have:

  • Your financial statements for the year.
  • A full copy of your bookkeeping records.
  • Payroll records.
  • All office expenses (including home office).
  • Vehicle information.
  • Income tax assessments.

If your business is a sole proprietorship or partnership—or your accountant also handles your personal taxes—you should also include your T4, T4A, T3, and T5 slips.

Hire Someone to Help

Of course, if you don’t already have an accountant working for you, finding one this late in the year could seem like a stressful task. Not so! In fact, it could be a perfect time.

Most people start to panic and look for an accountant or tax professional in the first quarter of every year. That tends to be a busy period for accountants. Everyone is looking for help with their income taxes, so we field many calls around that time. By contacting The Number Works in the fourth quarter of the year, you could also ensure that you’ll be set up for the tax season in a few months!

Set Up Quickbooks Online

The best way to make sure that your books are entirely in order by the end of the year is to maintain them as you go. And the easiest way to do that is to use an online accounting program.

We find Quickbooks Online offers small businesses an excellent level of flexibility matched with ease of use. Basic accounting features, like invoice and bill tracking, can keep all of your financial documents in one place, streamlining the organizational process at the end of the year.

While we’re big fans of many of QBO’s more advanced features, they aren’t usually necessary for many small businesses. With that in mind, you can often pick a less expensive subscription that will supply your company with everything you need to keep track of your finances at an affordable price. And if you do want to get into the more complicated QBO features, we’d be more than happy to teach you everything you need to know!

Another plus of QBO is all of the financial information contained within is easily shareable with your bookkeeper or accountant. If they already have access, you may not even need to lift a finger to get them what they need.

With gift-giving, big to-do lists, and general holiday stress, the end of the year tends to be one of the busiest possible times. For small business owners, that’s compounded by the panic of needing to get their books in order. So hiring a professional accountant or learning QuickBooks for yourself is the holiday gift that just keeps on giving! Getting that problem off your plate will instantly relieve much of the holiday stress and help you get your small business’ finances into great shape for next year.

Feel free to contact The Number Works today, and we can help you finish off your 2021 finances and set your small business up for future success!

Getting Started with Quickbooks Online for Your Small Business

Getting Started with Quickbooks Online for Your Small Business

Does the daily management of your small business’s finances ever give you a stress headache?

The reality of being a small business owner is that everything is on your shoulders. You don’t have a boss; you ARE the boss! While that can be incredibly gratifying, it can also be very stressful. There’s no one else to blame if things go wrong. If there are any mistakes when it comes to managing your finances, it’s entirely on you.

As a small business owner, the smart thing to do is put a comprehensive system into place to monitor and maintain your business’s financial health. For some small business owners, that can involve hiring a bookkeeper or accountant. However, many new small businesses don’t yet have the resources necessary to bring on such professionals. In this case, they need to have an easy way to make sure that their financial data is at their fingertips at all times. Enter QuickBooks Online!

Why Go for QBO?

While there are many online accounting programs out there, QuickBooks Online is our favourite here at The Number Works. Not only does QBO offer an impressive suite of financial management features at an affordable price, but it can also be learned by just about anyone!

As a service, QBO can grow with your business. When your business is just starting out, your financial management needs might be simple, but after a year or two of growth, you’ll need something a little more comprehensive. That’s one of the strengths of QBO—you can delve into its more complex features as needed, while also maintaining the brilliant simplicity of the overall system.

Your First Steps with QBO

The first step to using QBO is determining which package is best for your current business needs.

If you have a small business, you likely won’t need QBO’s most comprehensive services right off the bat. Your options include EasyStart, which provides for all of the basics; Essentials, which allows for multiple users, bill and payment management, multi-currency support, and time tracking; and Plus, which adds project profitability and inventory tracking.

Once you’ve picked your ideal package, you can start setting up QBO for your business. Importing your business’s bank accounts, credit cards, and other financial information into the system should be your next step. Once added, they’ll automatically update, importing up-to-date information regularly. This will save you a ton of time manually inputting financial data.

After this, it’s time to start setting up how you want QBO to organize your information. You can create accounts within the program for different line items in your financial statements. For example, QBO automatically gives you “Expenses” and “Revenue” accounts. That’s fantastic if your expenses and revenue are only coming from single sources, but if you have multiple sources of income, you might want to create some personalized accounts to make it easier to keep track.

Delving Into More Complex Features

QuickBooks Online setup can be a relatively easy, though somewhat time-consuming task. The real trick is learning the more complex parts of the program.

There have been many small business owners who, once they start with QBO, only use a small portion of its features. This is often the case even for business owners who could tremendously benefit from deeper integrations of the software into their business. It’s understandable, but unfortunately, it means that there are many additional benefits of QBO that they’re missing out on!

The best solution to this problem is to hire someone who can teach you all of the details of QuickBooks Online and show you how it can specifically benefit your business. At The Number Works, we can teach you all of the ins and outs of QBO. Our experience with this program and small business owners means that we know exactly the places where you can get the best bang for your buck!

Learning how to use QuickBooks Online is an investment into yourself and your small business. Once you understand how the software works, you can do your own bookkeeping to stay on top of your business’s financial health at all times!

Being a small business owner can be stressful, but the financial management side is always much more manageable when all your financial data and records are in one place that you can readily access. QuickBooks Online will keep things organized and give you an excellent view of how your business is operating. Even better, if you decide to hire a financial professional to take care of your taxes, everything will be ready to send to them, making tax season so much easier!

If you want to learn all about QuickBooks Online, The Number Works is prepared to help! Contact us today, and we can get you and your small business set up for success!