Top tips on how to manage your business correctly!
Article by Chris Costi, Last update at February 13, 2020
Comparisun can show you how to manage your business correctly and how to choose the tools that will best serve your business model. Managing your business means more than having a great idea, it means having the skills and infrastructure to help you build a winning business. Administrative tasks are often the biggest challenge when running a successful business, and Comparisun can help you simplify and streamline these systems by giving you the most accurate and objective information on how to choose compatible credit card processing software with integrations, features and cost analysis. Invoicing and accounting are core elements of a successful business and Comparisun reviews can help you choose an accounting package that will integrate with your POS system. Look at our guides to a QuickBooks online payroll setup, or the cost of using Square mobile credit card processing. Read our review of the Square credit card app and compare it to other leaders in POS software. Find the right tools to help your business succeed!
Part 1 – Administrative tasks
Don’t waste valuable time on Administrative tasks!
New studies have shown that small businesses spend far too much time on administrative works. As an average small and medium-sized business employ 17% of their total manpower to do these tasks which is counterproductive. The only way to lower the burden of administrative tasks is to automate these duties as much as possible and the only way to do this is to invest in a software program like QuickBooks and Freshbooks. There are many choices when it comes to administrative software, the question is, why do so many businesses still do these tasks manually?
What is Administrative burden?
Some business owners said that they could not afford it, others claimed that they felt it would be too difficult to use these programs. The truth is that you can get one of the top accounting packages for as little as $10 per month, which will hardly break the bank. As far as ease of use is concerned, most of the accounting software packages are very easy to use with full support and tutorials from the companies involved. The administrative burden is divided into two categories, regulatory and operational. In all types of businesses, there are bound to be regulations that need to be adhered to, this can be in the form of taxes which will include value-added tax. Imagine being able to bring up a report instantly on how much VAT you need to pay!
No excuse for inefficiency
There is no excuse for inefficiency anymore. Small and medium-sized businesses can streamline their businesses and use their manpower more efficiently, which will improve productivity. Another time consuming administrative burden is payroll and employee records, this too can be automated. Before choosing which software is suitable for your business to make sure it is compliant with regulations and taxes in your industry and country.
Invoicing & Accounting
With QuickBooks, for instance, all you need to do is put in your sales for the day and enter your purchases and invoices with dates, amounts and vat value. Once this is done you can bring up a report that will show you who you owes you money, who you owe money too with all the details. From here it is easy to view reports on how much Vat you owe, your profit and loss report, trial balance and balance sheet. At the end of your tax season, the date parameters are entered and you can print out all the necessary documents for your accountant.
This is a major benefit to be able to see at a moment’s notice all that you need to know regarding the administrative work of your business. If you consider how much manpower you will be saving, these programs will eventually pay for themselves. The other issue to consider is that there is no margin for error, once the invoices and purchases are correctly entered, all additions and subtractions are done automatically, and it is unlikely that the computer will make an error.
Payroll
If you have a lot of staff, you might consider getting accounting software that has an integrated payroll feature. A fully automated payroll system would only require you to enter the hours that each employee has worked and the rest will be worked out automatically. All PAYE taxes and social fund deductions can be set to do automatically. You can even go as far as automating payments directly into the employees’ bank account or print out a check. At the end of the financial year, all your employees’ details will be ready with the applicable tax forms for your country, ready to print out. All these processes can be set up once and automated.
The amounts paid to employees will automatically be shown in the balance sheet and profit and loss statements as employee expenses. You will also have a clear view of how much you have paid in taxes for them which you can bring up onto your screen if there is ever a dispute. You can view reports by date, by name, by type or any other criteria you want, as long as you take the time to set this up correctly from the beginning. Another plus with the payroll system is that you will have all your employees’ names, addresses and contact details which you can access in seconds when required. Square , Quickbooks, and Xero also offer an integrated payroll system.
Which are the best Accounting Software Programs available?
Check out the features available before deciding on which software solution to get. Also consider ease of use, compatibility, and integration if you already have a POS system. Security is also important and if possible choose cloud-based software. The added benefit with the cloud is instant upgrades whenever needed. There are many accounting packages to choose from. We have narrowed it down to the top 3 that are the most popular and widely used worldwide. They also have the capability of growing with your company when you need to upgrade. These are QuickBooks online, Freshbooks and Xero.
Square
Square is known mostly by their excellent services in the credit card processing and point of sale field. But in the last few years, Square also added great features to help SMB’s with their accounting and payroll serviced. In the Square tradition, they are cheaper than competitors and offer great value to the small-medium merchant. We highly recommend seeing if Square services are right for you.
QuickBooks Online
QuickBooks is by far the most popular accounting software online, with millions of users worldwide. With a large selection of functions and an easy to use interface QuickBooks is recommended for small to medium-sized businesses. The system syncs all data to one dashboard were in-depth reports can be viewed by multiple users. Trade, profit and loss sheets, as well as Balance sheets, cash flow statements and much more, can be viewed and printed when needed. If you want to take the process of automation even further, you can integrate with QuickBooks online payroll and Intuit GoPayment which is a credit card processing platform.
Freshbooks
Freshbooks is a highly awarded accountancy software program that is well balanced, has key features, is inexpensive and offers its customers excellent support. You can start off from their basic plan and as your business grows you can upgrade. Freshbooks offers a tracking and expense management feature with cloud invoicing and payment processing. With an easy to use interface, Freshbooks is accessible on Android, iPhone and mobile users. Freshbooks offers its customers exceptional customer service by phone and online with video tutorials and a knowledge base. Advanced security tools are in place with multiple data backup. Freshbooks offers a free trial plan which you can use to try out before you purchase.
Xero
Xero is another well know accounting software package that is similar to QuickBooks but comes with a few more features which makes it a highly versatile system that you can upgrade to. If you are a Mac user this is the best system to get. Another feature that is an advantage with Xero is the built-in payroll module. Amongst the features, you will also find financial reporting, inventory control and invoicing. Xero also offers a free trial if you are interested in trying the system first.
Which one is the best?
Although all three are excellent accounting software programs, there are some differences between them that are very slight but could be the deciding factor on which one you decided to go with. Whichever one you choose, they all have an easy to use, clear interface that is not difficult to master.
Even if you have no accounting experience, it is not difficult to understand how the system works. With a lot of tutorials that are accessible through android, IOS and through the web, all three software programs offer a lot of help. Freshbooks has a bit more to offer when it comes to mobile apps and features. QuickBooks, on the other hand, is a program that many people have used and it is more likely that new hires in your company will be familiar with the program.
When it comes to customer support, Freshbooks seems to be highly rated in this aspect. They offer phone and online support with video tutorials that are very comprehensive. It is also good to note that Xero and QuickBooks do not have phone support, but QuickBooks has over 20,000 certified 3rd party consultants that you can hire for help. On the security issue, Xero is said to be the best.
You cannot go wrong with any of these accounting programs. The important thing is to realize that you do need one. The time and effort you will save and the clear picture of how your business is running and all the other advantages that these programs offer are essential for any business, big or small.
