Early-stage Startups and Small Businesses tend to avert organizing finances and maintaining books. Result? They run into tax complications later – cue for bouts of exasperation in front of the Revenue officers.
Paying a hefty a price to an accounting firm to settle the quagmire at the last moment is not unheard of.
The following are some of the areas of negligence which give rise to accounting complexities:
An inattentiveness towards accounts preparation can be blamed on the tediousness of the task, that is, accounting. It is especially true for small business and startups owners who cannot yet afford a full-time bookkeeper or hire an accounting firm. But accounting is an unavoidable responsibility of any business. The best bet is sorting out finances using smart financial tools which can automate 90% of the tasks.
Here is a list of the financial tools every startup must use to simplify accounting.
For a small amount of no more than € 20 you can take the advantage of a fully automated accounting software for small business for day-to-day bookkeeping. This may include a quick invoicing feature with an option to mail your customers in batches. Some tools may also use API integrations to help you integrate your books with expense/billing management solutions such as Bank Receipts, or Point-of-Sale software to further simplify bookkeeping operations.
A smart accounting solution can streamline –
The tax laws are constantly changing, and it may not be possible for you to keep tabs on the latest legislative measures. Very recently, for example, the government announced a reduction of VAT rates starting from September 1. Using cloud accounting software which is compatible with tax laws in Ireland will ensure your accounts are up to date and compliant with the current tax rates.
It takes an early initiative to get into a good habit and no matter how small your team is, you must develop the habit of running payroll through an organized system. It provides effective employee management support and keeps you aware of the latest recruits and turnovers. It also auto-calculates and helps maintaining a clean record of employee salaries, tax liabilities, TDS, allowances et al. Most cloud accounting software come with a Payroll management system. So, what’s stopping you from digitizing accounting and employee handling?
Executing effective money-management strategies is one of the biggest challenges of every small business and startup. The lack of proper tracking is the reason businesses run into a budget mess. You might be approving plans left, right and centre to make sure your venture succeeds, but are you cutting your coat according to your cloth? Before long, you might run into a debt and your business might come to a complete standstill. Where is the time though to go through a maze of worksheets when you are too focused on your business?
Well, chuck worksheets. Instead, get budgeting software.
Surf Accounts has ‘Budget’ integrated to its General ledger. Here you can save budget targets against each account codes.
If you have customers already subscribed to your product, you would do better by choosing a tool that provides a unified view of all subscriptions. You can get customer data in one place and engage and take more informed actions. These tools are designed to manage subscriptions, pricing, and trial subscriptions.
Having a Bank of Ireland Business Credit Card means you can track business spending and separate business and personal expenses. You can choose payment dates commensurate with your business cash flow and set credit limits per card.
Simplify and control your finances. Use these tools to accelerate tasks.