Why Your Small Business Should Be Using Bill.com

When you are running a business every penny counts, and every minute counts. You’ve taken the time to follow your passion and hone your skills to provide your customers with the best products and/or services you possibly can. A lot of energy also goes into building strong relationships with customers and clients. In order for your business to succeed, you need to be paid for what you do, and working with a bookkeeping service in Atlanta can help.

Collecting money from customers isn’t always pleasant, nor is balancing the books over all. A few small business owners may know how to handle book keeping duties, but most have other things they would rather be doing. But one way or another, the money must be taken care of. Fortunately, there are resources available, and practices you can apply that can make this go much easier.

Develop a Consistent Billing Strategy
Not every business works well with an absolute point of sale, cash-only model. But the goal should be to have each item or service paid for as soon as possible after it is delivered. While this right may be central to the business model, some feel uneasy when it comes to putting their proverbial foot down and demanding payment. When the product or service is delivered before payment, clear expectations need to be set, along with clear consequences when those expectations are not met. Make it clear that payment is due on receipt, and have a process in place to send slightly stronger reminders every ten days if payment has still not received. By keeping the same strategy across your business, your customers will learn to do business within your parameters, and will recognize that even though your business is small you’re just as serious as any of the larger businesses out there.

Tighten Up Operating Costs
Book keeping and paperwork are a part of every business, and many of the practices that are convenient and cost efficient for employees are also ways that the business can maintain its financial strength. Practices such as insisting on direct deposit, and paying twice a month rather than every two weeks can cut down on administrative costs.

Put Your Cash to Work
Whatever money you are planning to use for future, rather than immediate business ventures can be kept in interest bearing accounts or even CDs. Not only does this give you the opportunity to earn some interest company, but it helps you cultivate your relationship with financial institutions where you might need to reach out to in order to get a loan.

Getting Support
It can be hard to juggle which money you need for you business now for both basic operations and paying employees. Staying firm about credit accounts for your customers, and making the most out of all your revenue to move forward. If you spend too much time dotting i’s and crossing t’s, your overall business plan can potentially suffer.

Getting help from a book keeping service like Sound Business Services can make a big difference. We can work with Bill.com to enforce a consistent billing strategy, help organize your payroll system, help with tax preparations, and get you ready to head to the bank for future expansion loans as they are needed.

For information on how Sound Business Services can help you keep your business;s finances is check, contact us for a quote.

How To Use Your Paypal Data in Quickbooks

While a bookkeeping service Atlanta knows and trusts can give you peace of mind that your accounting is being done properly, QuickBooks by Intuit can also help with streamlining your accounting processes. The software assists in simplifying accounting and bookkeeping for sole proprietors and small businesses whether they are making use of an Atlanta bookkeeping service or not.

With QuickBooks, you can automatically import many types of bank account transactions. Integrating your PayPal data with QuickBooks takes a bit more time and effort; however, it is possible to conveniently keep track of these transactions within QuickBooks as well. You have two options for accomplishing this: the Sync with PayPal app, or manual configuration.


Using the “Sync with PayPal” App

The Intuit company, maker of QuickBooks, released the Sync with PayPal App in May of 2015. It’s designed to securely and automatically import PayPal data such as transactions, taxes, fees, discounts and gratuities into the QuickBooks Online application. Other transactions like PayPal bank transfers and expenses will also be routed into appropriate categories in the online version of QuickBooks. Here’s how to get started:

  1. Get the App
    Start by downloading the Sync with PayPal app free from the QuickBooks App Store.
  2. Follow the Prompts
    Once you’ve successfully downloaded the app, launch it and follow the prompts for syncing QuickBooks Online with PayPal.
  3. Enjoy Automated Updates
    The Sync with PayPal app will automatically update information as-needed and store it accurately and securely in QuickBooks Online.
  4. (Optional) Download Past Transactions
    If desired, the app can be used to download up to 18 months worth of your past PayPal transactions.


Manual Syncing Your PayPal Data in Quickbooks

With offline versions of QuickBooks, manual syncing will be required. Use these six steps for manually exporting your PayPal transactions and data into QuickBooks so that you can keep track of it as part of your bookkeeping and accounting processes:

  1. Log In and Go to History
    Start by navigating to the PayPal site and logging in using your favorite browser. Move the cursor to the “My Account” tab and select the “History” link to see the available account history choices. Click on “Download History” and you’ll be able to have access to your download options.
  2. Download Your PayPal History
    Enter your desired download date range or choose “Last Download to Present” if appropriate. (If you have not yet downloaded data from PayPal, “Last Download to Present” will only yield the past week’s data. Use the “File Type for Download” drop-down menu to choose “Quickbooks .iff” to ensure compatibility. Click “Download History.”
  3. Name It
    You will be prompted to name the PayPal account you will be using in QuickBooks. You will also be asked to name the Other Income and Other Expenses categories; these will be used for tracking things like PayPal debit card cash back and PayPal fees. To complete the download of the file, click “Download Log.” When finished, you can log out of your PayPal account.
  4. Open QuickBooks
    Next, launch your QuickBooks application and open your PayPal profile. Designate new entries for expenses, transactions and other income types and add them within the “Customer and Vendor Profile” section. Use the same names you did in your PayPal account.

    Note: If you’d prefer to integrate your PayPal data into existing QuickBooks categories, enter those names into the appropriate fields instead of creating new ones when exporting your PayPal data.

  5. Import Your PayPal Data
    Open your File menu in QuickBooks and go into the “Utilities” section. Start a new submenu and move the cursor over “Import” and select “.IFF Files.” Choose the file you just downloaded from PayPal and start the file importing process.
  6. Save Your Profile
    Once the import is finished, save your new QuickBooks profile. Anytime you do an import, your PayPal data will be automatically placed into the correct categories that you’ve pre-designated.

More and more shoppers are using PayPal as their preferred payment option. Use these steps for merging your PayPal payment data with QuickBooks software. If you’re considering outsourcing your accounting, use a bookkeeping service Atlanta knows and trusts.

The Critical Numbers You Need to Know For Small Business Success

While many small business owners have a basic knowledge of bookkeeping and financial management, few have an accounting background. Most would rather stay focused on doing what they love most: running their businesses. A small business owner’s time is much better spent on fine-tuning their product line as well as providing the best customer service possible. That said, there are some crucial numbers every business owner should have a grasp of for continued small business success.

Tracking Key Performance Indicators
Key performance indicators are the tools and numbers a business owner can look at daily, each week, once per month, quarterly, at the end of the year, or on a project by project basis. These numbers can help business owners to:

  • Measure/define progress
  • Make informed business decisions
  • Budget effectively
  • Allocate resources intelligently
  • Address inefficiencies
  • Detect fraud
  • Have peace of mind

While you may not want to spend too much time analyzing reports or reviewing financial statements, you should ideally be aware of these critical measures, metrics and numbers:

Of course, your sales are a primary indicator of how your company is doing. Are they rising, falling or staying the same? Are you aware of seasonal or industry trends that could be influencing sales? Are you taking bottom-line performance into consideration while analyzing your sales?

Accounts Payable
Money owed to suppliers and vendors.

Accounts Receivable
Money that your business is owed.

Cash Flow Statements and Forecasts
A cash flow statement is a report summarizing cash movement in and out of your business at any given time. This number should be analyzed in light of operations, financing and investing activities to calculate current cash amounts as well as likely future totals. Forecasting cash flow usually involves adding your cash in the bank plus expected cash in the coming weeks minus outgoing cash over the same period. Tracking these numbers can help you to anticipate and handle profit lulls and shortfalls.

Your total money and property investments that are retained in the business by owners/shareholders.

Debtor Days Outstanding
The average number of days customers are taking to pay off your invoices; multiply sales/accounts receivable by 365. An increase in this number could indicate a problem for your cash flow, while a decrease is positive.

Creditor Days Outstanding
The average number of days you’re taking to pay suppliers; multiply purchase amounts/accounts payable by 365. (If this number is lower than your debtor days outstanding, you should step up debt collection.)

Balance Sheet/ Statement of Financial Condition
This is a summary of your company assets/business liabilities for a specific time period.

Income Statement/ P&L Profit and Loss Statement
This report summarizes your gross income/revenue minus your cost of goods sold and operating expenses.

Gross Profit Margin as Sales Percentage
A rise in this metric tends to be a good sign, while a decrease could mean that your overhead is too high, your product pricing is too low, or that there are flaws in your business model. It is indicative of the amount that you charge customers versus the cost your vendors and suppliers are charging your business.

Stock Turnover/Inventory Days
Stale inventory could be costing you! This measure refers to the average number of days your inventory remains on your shelves before it is purchased. Calculate this number by multiplying your purchases/inventory by 365. The lower this number is, the better, as this means you have more cash flow available to grow your business.

Accounting or financial management may not be your forte, but an awareness and focus on these key numbers is crucial to your ongoing success. That’s where a bookkeeping service Atlanta knows and trusts can be invaluable. Hire a seasoned professional to help you stay on track with these key business numbers, and you’ll increase your odds of having a business that continues to continue to grow and thrive.