Bookkeeping by Trifox is now certified in the Xero accounting system. With this new certification addition, our company now has both Quickbooks and Xero experts available whenever you need assistance in the Reno, NV area.
From Xero’s site:
We started Xero to change the game for small business. Our beautiful cloud-based accounting software connects people with the right numbers anytime, anywhere, on any device. For accountants and bookkeepers, Xero helps build a trusted relationship with small business clients through online collaboration. We’re proud to be helping over 700,000 subscribers worldwide transform the way they do business. And we’re just getting started.
Maintaining your books isn’t something you should do solely at tax-time. When organized and done correctly, it allow you less stress and anxiety and improves your ability to make business decisions and to focus on your business, not on your books!
Three reasons that you should maintain good books:
1. Less Stress and Anxiety
Think of it as getting in your car and driving with no direction. When your books are organized, you know where you are and can make clear decisions. How can you know where to go, if you don’t know where you are?
2. Audit Protection
Many different entities audit, from the IRS to Workman’s Comp Insurance audits. Having your books up-to-date and organized makes the audit process easier.
3. Corporate Veil
Maintaining a set of books for each company, including a separate bank account, substantiates the corporate veil. Corporations and LLCs are formed to protect assets, but are not effective if the corporate veil cannot be maintained.
Four things to consider when deciding on desktop software or cloud software for your accounting needs:
Program Ownership — When you purchase a desktop program and it belongs to you to infinity. However, most accounting programs will sunset such features as payroll, requiring you to purchase new versions every few years. In cloud accounting, you subscribe by the month to use the program. If you stop your subscription, the program, and your data are not accessible.
Accessibility — Who and where your employees need to access accounting is a major consideration. Desktop versions allow access only if you have access to the computer where it is installed. Remote access is possible but still limits the accessibility. Cloud-based programs allow access wherever the Internet is available and over a variety of platforms such as computer, tablet or phone.
Reporting Features — While gains have been made in the cloud-based arena to provide better reporting and third-party applications, it is this writer’s opinion that the desktop version provides the best reporting features. When deciding which to use, be sure to test the cloud-based reports, not only for content, but for how they will appear when printed.
Data Location & Ownership — Cloud-based accounting programs store your data on secured servers and backup everything for you. Your company has tight access to users but location and ownership of your data is a gray area. Desktop versions? You know where the data is located and it belongs to you.
Oh No! My Bookkeeping is not done and Taxes are due!
As a business person, you need to keep your customers happy and your business going first. The record keeping always follows. So, what happens when you suddenly realize that the paperwork is unorganized and tax filing is due? Her are five steps to get you back on track.
Contact your tax preparer and have them complete an extension for your taxes. If your business fiscal year ends on December 31, the corporate taxes are due March 15 and the individual taxes (for Schedule C proprietorships) are due on April 15.
Contact your bookkeeping service and schedule an appointment. If you have always done everything yourself, but don’t have the time now, hire a bookkeeping service to help you.
Find the following items and bring them to the meeting:
Credit card statements
Check Register (if you write checks by hand)
Copies of any new purchases for the year
Cash receipts for the year (if any)
Make a backup of your accounting database (if you use one)
Meet with your bookkeeper, have them give you a quote based on the amount of work to be completed and the turnaround time that you need.
Take a deep breath and relax; this task is now under control.