January 4, 2013
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Every small business has encountered accounting and bookkeeping challenges. In fact, even small accounting errors can potentially be a big problem. According to C.P. Morey, CPA and VP of AuditMyBooks in an AccountingWEB post, “One small mistake in recording a payment from a customer can lead to underpaid sales taxes ultimately resulting in unnecessary penalties and interest charges.”
“Approximately 60 percent of accounting errors result from ‘simple bookkeeping mistakes or misapplication of easily understood accounting standards,’ according to recent research by Indiana University,” he said.
However the best way to solve small business accounting problems is to stop them before they start by: developing a system and standards, using integrated software that requires less manual entries, using flexible cloud-based accounting software, educating yourself on bookkeeping, tax and accounting issues, and partnering with a CPA.
Not all small business accounting, bookkeeping, and time tracking tools are created equal, so here is a look at 10 financial apps your small business can choose from:
Xero online accounting software offers a great solution for small businesses. Their web based system for invoicing/billing, accounts payable, bank reconciliation and bookkeeping is easy to use and flexible. It includes a full accrual accounting system with a cashbook, automated daily bank feeds, invoicing, debtors, creditors, sales tax and reporting.
In 2009 Xero won two Webby Awards for world-class software usability and design and is currently listed on the New Zealand Stock Exchange with over 100,000 users and paying customers in more than 50 countries. Best of all, Xero offers a free trial.
Yendo offers accounting and customer relationship management (CRM) software for small business. Their online accounting software including invoicing, payments, trial balance and nominal ledgers. They also note Mac compatibility.
Yendo’s cloud computing application is available to users anytime and anyplace with a web connection. Users can manage invoicing, purchases, expenses and payments as well as profit & loss, balance sheet and create their own reports to chart their companies performance. The company is based in Ireland but has a significant customer base in both the United Kingdom and the US. A Yendo account is currently free for a single user with free access to the premium version for 30-days.
Outright helps small businesses and those who are self-employed with online bookkeeping. GoDaddy acquired Outright in June of last year. Their unique value proposition is designed for every small business – entrepreneurs, self-employed folks, online sellers, and other people who have to file a Schedule C.
Outright automatically imports all of your data from Amazon, eBay, Etsy, PayPal, banks, and credit cards so that you can track your income and expenses, see how your business is doing, and be organized at tax time. They currently offer a free account with no trial or expiration date.
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