Running a business is not an easy task; it takes constant and diligent effort. We have seen businesses failing due to a number of issues. Damage can also be caused by a failure to analyze profit or loss over a given time period.

Do you think your firm will succeed if you don’t have a solid accounting system in place? Accounting is a necessary component of any business.  Automated accounting methods are the way to maintain records in place in these competitive times.

Why should you check your accounts on a regular basis?

To analyze the growth trajectory

The only method to determine the scale of growth you acquired is to examine your account statements. Change does not have to be profit-driven; it can also reveal the negative consequences of the decisions you’ve made.

1. To make necessary changes

Accounts that are reviewed on a regular basis provide insight into the company’s performance. As a result, if things aren’t going as planned, the authorities can make the required changes.

2. To track late payers

It could assist you in receiving payment properly. There may be situations when your client or customer does not complete the payment; monitoring accounts on a regular basis will assist you in quickly tracking late payers.

3. For keeping track of expenses

You may spend money without knowing how much money you have left in your account. You may make the assumption that you have a particular amount of money in your account and spend it accordingly. This can get you into a lot of trouble. Checking accounts can assist you in making sensible financial decisions.

How does Accounting Automation help to know your Profit?

When compared to traditional bookkeeping methods, automated technologies aid in the timely assessment of accounts. It saves a lot of time relative to going through the entire file. It makes it simple to determine whether the company is profitable or not. Every penny that comes in and goes out of your account contributes to the firm’s success. As a result, keeping track of everything is crucial. Accounting automation is the only way to maintain track of all of these documents and understand the company’s current situation. It assists you in making suitable decisions at the appropriate moment.

In short, reviewing your finances is critical, and having a user-friendly system to do so is essential for any company’s success.

Business is business, and personal matters are personal; the two are not the same. In no way, mix things up.

It is usually preferable to keep your personal and professional lives separate. Use it separately, whether it’s your time, energy, money, or anything else. Individual accounts for business and personal requirements are sometimes overlooked in the beginning. When you combine the two, you end up with an unbalanced situation.

For the sake of convenience, people like to keep a single bank account for both business and personal requirements. Small business owners, solopreneurs, and freelancers frequently ignore the need of having two accounts. Banking entails more than just money deposits and withdrawals. People that use a single account for different purposes find it difficult to deal with concerns such as tax filing, financial record generation, and so on.

Advantages of keeping accounts separate

You must not overlook the requirement for accounting support while balancing all of your responsibilities. A freelancer’s revenue might come from a variety of sources. People from other countries could be among the revenue sources. As a result, professional help is required to manage the accounts.

1. Professionalism

The mixing of bank accounts is incompatible with a professional approach to business. The way firms handle money reflects their trustworthiness.

2. Tax filing

Accountants frequently refer to tax filing season as ‘the craziest season.’ For this, account statements with revenue and expense details are required. So, would it be a good idea to provide information on your personal transactions as well? It also takes much time to identify and differentiate the business and personal transactions from the lengthy statements.

3. Efficient and easy bookkeeping

Bookkeeping is the one inevitable step that is important to any company’s present and future success. It must be error-free and simple to use. Separating business and personal accounts makes it easier to keep track of data and use them when required.

4. Proper analysis of profit and loss

Timely analysis of profit or loss is an unavoidable factor. Only the analysis of account statements can reveal profit or loss. A combined account statement containing personal and business transactions will make it difficult to evaluate outcomes efficiently and easily.

5. Avoids personal liabilities

Personal liabilities may be created by using a single account for both company and personal requirements. You may end up spending money for personal needs on business, and vice versa. As a result, the situation becomes more difficult, resulting in liabilities.

Maintaining separate accounts is the best way to prevent a slew of problems that can arise when trying to make profit with a single account for yourself and your company.

Freelancers are the boss, employer, employee, assistant, and everything rolled into one. Being a freelancer is not an easy job, it demands consistency, hard work, proper management abilities, and more. A freelancer could be a jack of all trades and a master of one. Freelancers choose the career according to their expertise in the field.

You are an expert in your industry, but you also serve as your own advertiser, manager, accountant, and more.

4 Reasons why freelancers need an accounting assistance

You must not overlook the requirement for accounting support while balancing all of your responsibilities. A freelancer’s revenue might come from a variety of sources. People from other countries could be among the revenue sources. As a result, professional help is required to manage the accounts.

1. To save time

Time is money. To make money as a freelancer, one must stick to a strict schedule. You are in charge of yourself. No one else is in charge of keeping track of your work. Accounting is a job that can keep you occupied for a long time. To save time, it is recommended to get accounting aid. It also enables you to collaborate with a larger number of clients. It also helps in keeping separate personal and business accounts, saving you time by separating sources of revenue, expenses, and so on.

2. For legal reasons

Because you may work with a wide range of people from all over the world, keeping track of all transactions is essential. Every penny that reaches your account is your responsibility.

Taxes are levied on freelancers as well. The tax deductions differ depending on where you live. You might not see it until the money is withdrawn from your account. Having an accounting assistant can support you in figuring out the specifics of your taxes and other deductions.

3. To increase profits

An accounting assistant can help you in effectively managing your finances and increasing your profitability. You are qualified for a number of benefits, but you are also unaware of them. Before it’s too late to file, you’ll be advised of such details. As a result, you save a lot of money while simultaneously increasing your profit margin.

4. To maintain a healthy financial record

It’s difficult to keep track of all the transactions manually because you may receive income from several sources at different times. In that scenario, having an expert on board to assist you is preferable. At any time, you will have easy access to your income and expense records. As a result, you’ll know how much money you have left to spend and save.

Being a freelancer is a decision you made on your own. Freelancing isn’t as simple as it sounds. Maintaining a successful freelancing profession necessitates a significant amount of effort. It’s entirely on you to acquire clients, deliver the product or service on schedule, and manage the accounts. Isn’t it a good idea to have support with your accounts so that you don’t waste any of the money you worked so hard for?

“It’s not your salary that makes you rich, it’s your spending habits,” Charles A. Jaffe.

You have complete freedom to spend the money you’ve earned, but maintaining a healthy balance between income and expenses is the key.

Personal finance is defined as the way you manage your money and make financial plans for the future. Income, expenses, financial decisions, and activities all have a role in one’s financial well-being. There is no way a person can go broke if all these are balanced.

Accounting Automation

Accounting Automation is the process which involves the use of software to automate tasks related to finance and accounting. While automation can help to speed up the accounting process, it is not a replacement for manual labour.

Accountants

An accountant’s responsibilities include more than just preparing account files; they also include supporting businesses in achieving more while spending less.

• Accurate and proper financial documentation abiding to the laws and regulations.
• Preparation of financial reports
• Maintenance of reports
• Ensuring the taxes are paid on time
• Analyzing and filing the tax returns
• Timely evaluation of accounts to assist the firms in working efficiently
• Guiding the firms on ways to reduce expenses while maximizing the profits

Benefits of accounting automation for an accountant

1. Accounting and financial professionals are empowered by automation since it allows them to perform their jobs more efficiently and effectively.
2. Accounting is a time-consuming and complicated process. People used to work without a calculator in the early phases. Later on, as technology advanced, new improvements to all sectors were made. Calculators, computers, and other tools made it possible for people to get the most out of themselves in a short period of time.
3. Many common errors could be avoided with the use of technology. It is impossible to avoid making mistakes, especially when dealing with data and numbers.

Accountants have long used one or the other software system. The transition from paper to software was gradual, but it kept growing as a result of its advantages. Advantages include,

• Time saver
• Accuracy
• High productivity
• Data security
• Easy and fast data retrieval
• Cloud- access
• Data storage
• Professional development
• Reminders
• Reduction in workload

Automation in accounting assists in the evolution of accountants and not the extinction of their careers. Accountants must make use of the resources available in order to make accounting a simpler task.

“Digital is fundamental to our business and to the future of the entire financial services industry.

Denny Hudson

We may not find a more fitting statement to explain digital banking systems in this fast-paced, everything-available-in-a-click time era. You have complete freedom to spend the money you’ve earned, but maintaining a healthy balance between income and expenses is the key.

Banking, the long-queue system

Banking could keep a person busy for an entire day in the past. The procedure of opening an account was considered a herculean task. Every transaction required multiple visits to the bank. Long queues, banking jargon, risk issues, and other variables have contributed to the process becoming more complex and confusing.

Introduction of Digital Banking Systems

Managing money in a way that allows you to save for the future does not imply that you should ignore the present; it simply means that you also have complete control over your finances. Personal finance management entails setting aside money for fun, other purposes, retirement, emergencies, and future savings.

Banking Then v/s Now

The advancement of technology can be seen in all sectors. Given that going digital is the new normal, there is no harm in experimenting with these features. Although not everyone is comfortable using digital banking systems, these features can be used to check balances at the very least. Even a single benefit can save you money on bank visits.

Benefits of Digital Banking Systems

Banking procedures have become simpler and more accessible as a result of their digitalization. At the same time, digital systems are ineffective to a technically illiterate person. Nonetheless, the digitalization of banking procedures allows people work more efficiently.

1. Accuracy

Traditional banking processes are prone to errors. The use of technology in banking allows banks and individuals to have greater accuracy throughout the process.

2. Saves Time

The amount of time it takes to bank has decreased. All account and transaction information can be accessed at any time without the need for a bank visit.

3. Business efficiency

Banking could be done anytime independent of the physical banking hours. Thus, transactions are done faster and the workflow isn’t disturbed. There is no need to wait for the next banking hours. This supports doing business in a more efficient manner. Transactions could be done even to the remote areas quickly.

4. Convenience

The inconveniences of visiting the bank regularly are no longer a factor. Any type of monetary transaction or other bank-related activity could be completed at a person’s convenience. Anytime, anywhere, and every time!

5. All features under roof

All banking features are available under a single roof. Anyone can open a new bank account from the comfort of their room. Also, the existing bank accounts can be linked to the digital platform without any trouble. So, paper-free, contact-less banking is encouraged. Personal financial assistance is another important feature of the digital banking system.

6. Financial Control

The navigation of daily transactions is easier with digital systems. As tracking the expenses are simpler than before, it allows to have control over the finances. Also, it helps to keep track of the tax deductions.

Forgetting is a common part of daily life. Even though memory slips are common, they can have serious consequences too. The intensity of the consequence varies according to the situation. Finance and bank-related dates and data are a few among them. SimpleAccounts assist as a reminder too. Also, it goes through every transaction and keeps you updated. A proper banking system is the necessity of all individuals and businesses. Once properly maintained, financial health is stable.

Payroll Management Process is a set of steps that are followed in a particular order every month to form a Payroll Cycle. Payroll isn’t just about the given salary, it is more than that. It includes salary, wages, bonuses, net pay, deductions, and more.

Regardless of the number of employees in a company, the Payroll Management Process must maintain the financial records of everyone.

Why Payroll Management is necessary?

Payroll Management can be a challenge for businesses. The work isn’t done by maintaining a record alone, it has many regulatory and state laws regulating what one has to track in payroll. Any mistakes in doing these would lead to fines or other punishments by law.

Step- by- step Payroll Management Process 

1. Onboard Employee

  Employee onboarding is the process of adding a new member to a company or an organization.

2. Create a payroll policy

A payroll policy ensures that employees are always paid accurately  and on time. A payroll policy explains the payroll process, including salary administration, payroll timelines, time tracking, and methods of payment.

3. Compute the payroll

Computation of payroll is a process of determining the gross pay, reducing the deductions and taxes and fixing the net pay.

4. Pay employee salary

The employee’s salary must be sent on a constant schedule. If there are any problems, they must be informed in advance.

5. Hand out payslips and tax computation forms

Handing out payslips and tax computation forms is as important as paying the salary. It should include all the details about the salary, bonuses, taxes and so on.

Automated system for Payroll Management Process

Automated systems assist businesses with proper payroll management. Once the data is entered, it generates the needed detailed payslips every month.

a. Error- free calculations

‘To err is human’. When computations are performed manually, errors occur. An automated method can help to reduce the chance of making mistakes.

b. Data security

 The security of data must be prioritized. When data is associated with accounts, it must be treated with utmost care. At present, traditional data storage technologies are insufficient. Data stored in the cloud system is more secure due to its digital lock technology.

c. Saves time

‘Time is money’. The digital method of working makes it easier in every means. In case if we need any information at any time, it is just a click away. One need not spend much time on entering the data every month.

d. Allowances in a click

Once the data is entered, it is saved for ever. Any and every information, allowances, and more are available with a few clicks.

e. Timely reminders

Automated systems provide timely reminders. Notifications are sent at the right time to avoid any delays.

f. Payslip generation

 Professional and detailed payslips are generated automatically. A payslip includes allowances, deductions, taxes, net pay and so on. All such details are typed in order every time without much effort.

g. No experts needed

Digital systems allow small businesses to do business efficiently even without an expert. In such cases, the expense of hiring an expert also gets saved.

SimpleAccounts aims to assist business owners, freelancers, and everyone who needs support with managing their accounts. All the steps involved in the Payroll Management Process are made simpler and easier for every user. SimpleAccounts will never let you feel the burden of the payroll process.

“It’s not your salary that makes you rich, it’s your spending habits,” Charles A. Jaffe.

You have complete freedom to spend the money you’ve earned, but maintaining a healthy balance between income and expenses is the key.

Personal finance is defined as the way you manage your money and make financial plans for the future. Income, expenses, financial decisions, and activities all have a role in one’s financial well-being. There is no way a person can go broke if all these are balanced.

5 key Rules To Have A Financially Healthy Life

Managing money in a way that allows you to save for the future does not imply that you should ignore the present; it simply means that you also have complete control over your finances. Personal finance management entails setting aside money for fun, other purposes, retirement, emergencies, and future savings.

 1. Do the calculation

When it comes to personal finance, people tend to ignore the importance and leave them to chance. Spending a little time over the numbers can help anyone from being bankrupt.

2. ‘Don’t go broke trying to look rich’ rule

As one starts making more money there is a tendency to spend more money. Competing with friends or co-workers’ lifestyles and trying to match with their lifestyles is an unhealthy practice that must be avoided.

3. Know your ‘needs’ and ‘wants’

Needs and wants are not the same things. You need food to survive, but want a row of luxury cars in your garage. Think and plan before you spend on your ‘wants’.

4. Save Early

It is never too late to start something new. Saving a small sum of money from a younger age is better than cutting off your expenses along the journey.

5. Emergencies can be casualties.

Emergency expenses are the ones that are out of your daily expenses. An unexpected hospital need, economic depreciation, or anything of that sort may not affect your financial stability if you have got a certain amount saved for emergencies.

At SimpleAccounts, we make sure that you have a healthy financial life with on-time financial reports, automated expense tracker, and more.

If you are running a product-based business, you know how difficult it is to manage your products, track your stocks and organize your inventory. Yes, this is why inventory management is a critical need for your business. Learn how a systematic, integrated, and automated management of your inventory can drastically improve your efficiency.

What is Inventory?

The word ‘inventory’ means a complete list of items such as property or goods in stock. It is the raw materials used to produce the goods for sale and the finished goods.

Types of Inventories

· Raw materials: The unprocessed materials needed for the manufacture of the desired product. Example: Cotton, silk, etc. for textile industry, wood for carpentry

· Work in Progress: The partially finished or products under construction waiting for completion. Example: A half-assembled automobile

· Finished goods: The products which are ready for sale. Example: Clothes, vehicles

Inventory management in business

A balance between the amount of inventory coming in and going out is an essential factor in the success of any business. Overstocking inventory often leads to loss by limiting cash flow and creating a budget issue. Overstocked inventory or dead stock sits in storage and does not find its way to the market for sale.

Lack of inventory also affects businesses negatively. Informing the customers about not having necessary goods or making them wait for a long time before delivering the products may affect adversely. It limits the customer service and forces the potential customers to go elsewhere.

An effective inventory management system enables businesses to maintain the balance between going under and overstocked.

Purpose of Inventory Management

The primary purpose of Inventory Management is to support businesses to order, store and sell the inventories easily and efficiently.

Importance of Inventory Management

Inventory management helps businesses to arrange the needed amount of inventory at the right time in the right place. It simplifies the process of ordering, storing and using inventory.

As the inventories constitute the soul of any business, it is important to have an effective management of the same.

If you are looking for the perfect solution for inventory management, check out SimpleAccounts because it not only automates your inventory but also solves all the bookkeeping problems.

We have all heard about dividends, but have we ever really tried to understand what they were? and how they can help a company grow and be sustainable?

Simply put, Dividends are an earning that a company shares amongst its shareholders. Dividends are therefore generated when a company does incredibly well during a period and has enough earnings to pay its shareholders. Dividends are paid whenever companies decide to pay them quarterly, that is they have the right to pay it whenever they want.

There are two types of dividends – Cash dividend and Stock dividend.

1. Cash Dividends

Cash dividends are money that is directly paid to the shareholders. To be able to distribute cash dividends, you will need to have enough retained earnings left to not have your company go into deficit. This will also be recorded as a liability within your balance sheet.

How it benefits your company?

Cash Dividends are beneficial for your company in a few ways. It makes your shareholders feel  that they have invested in the right company, This in turn makes them loyal and attracts more investment.

2. Stock Dividends

Stock dividends are additional stocks that are distributed to shareholders. The shareholders can decide whether they want to keep the stock or sell it. Sometimes you would not have enough retained earnings to give your shareholders as cash dividends. Stock dividends are a good option at these times which can still make them happy. Within this dividend, there are two smaller parts; Small stock and Big stock.

These are not the only dividends existing but they are predominantly the main. Companies who decide to reinvest their extra earnings back into their companies to  the stock market and pay dividends later, can also buy new assets or branch out.

The decision to reinvest the profit or payout dividends is made by the company. The choice is based on a number of factors, including the industry’s nature, growth rate, and so on. As a result, make your decision after considering all of the relevant factors.