RECOMMENDATIONS FOR NEW BUSINESSES
QuickBooks Experts of Northern NJ & NYC
1. Good financial management is the foundation of a profitable and successful business. It begins with a solid accounting system and an easy and accurate way to track, measure, and analyze performance. So, how can a new business implement an effective financial management and accounting system without incurring too much time or money? It can be done manually, with a pen and a ledger, a spreadsheet or an accounting programs like QuickBooks or Quicken. These computer programs are readily available and very reasonably priced. They are also user-friendly. For those who cannot invest sufficient time to do their accounting, we recommend outsourcing it to a local bookkeeping service.
2. Typically, we recommend that new companies start out doing their own bookkeeping so they can get a grasp on the business operations from a financial standpoint. At GBS Co. our preference is QuickBooks software because it is easier to use and better suited for businesses. The biggest advantages of QuickBooks accounting software is that it’s very affordable and easy to learn plus, you don’t have to understand how accounting works to use it well. In addition, accountants like working with this program and this makes it easier at year-end, when all the financial reports can be generated and e-mailed to the accountant right from the program in less than a minute.
3. Since image is so important for new companies and building it can take time, we recommend creating a logo and then using it on all company sales forms and correspondence to customers. In QuickBooks creating custom invoices that include the company logo are easy to achieve. This feature is built in the software and takes very little time fine-tune.
4. Please consider handling your accounts receivables and payables on one program. Although some companies choose to use an auxiliary Invoicing program, this sometimes leads to delay in loading information into the second system. This delay means financial information isn't going to be available on a timely basis. Instead, load your data into one system and run your reports monthly or quarterly. For instance, in QuickBooks the A/R and A/P aging reports are readily available and collection letters to customers can be prepared without much work. These letters can be printed or e-mailed individually or in batches pretty quickly to help speed up the collection on overdue invoices.
5. Finally, what can new businesses do to increase their chances of success? The most important factor here is to keep a close eye on the financial management, quickly identify strengths and weaknesses, and respond appropriately where changes are needed. To do this efficiently, new business owners must rely on financial reports generated from their accounting system. For those who choose QuickBooks software, please ensure that users are trained to navigate this program properly. A user without proper understanding of the software can create accounting chaos that not only might cost to clean up but will distort financial reports, critical for decision making. Those hiring bookkeepers to work on QuickBooks, please first test their skills or offer a company sponsored QuickBooks training class. There are various types of training courses, however the most effective are those tought one-on -one or in a small group.
SUMMARY
So what can new companies do to help them succeed in business?
1. Implement a good accounting system
2. Run financial reports on a regular basis
3. Analyze reports to identify strengths and weaknesses
4. Make changes where needed
5. Ensure your staff is trained to use your accounting program
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