When ever tax time rolls around, our eyes glaze over with questions about business expenses and deductions: Can she write off this short sleeved shirt? What about that business lunch a couple months ago? And then there’s the question of his XXXL shirts you put the company logos on. This it the point at which the need for some good business technology becomes obvious.
Various software programs are available for download for businesses to use. Bookkeeping and tax software makes monthly business accounting easy. This software will aid the bookkeeper or accountant in recording the businesses various financial transactions in the correct ledger, including payments, revenues, sales, and purchases.
A company has the choice of high-cost, low-cost, or even free software for their accounting and bookkeeping management. The software chosen needs to have all the basic functions businesses will need and should incorporate the utilities needed for accounting, business taxes, and payroll. The program should include modules to assist businesses in creating monthly budgets, follow the progress of projects or jobs, and help with scheduling recurring payments.
It should have a section to help manage the bank transactions and credit card transactions. There needs to be a component for tracking and paying bills along with a module for payroll management that assists with federal and state tax calculations. It might include an element devoted to accounts receivables that help in creating invoices and estimations, calculating sales taxes and automatically calculate the full amounts due.
A reporting function would disclose to the business owner all financial transactions. The program chosen by any business should support both of the two major forms of accounting that businesses can use. There is the Cash Basis and Accrual Method. Service businesses generally operate on the Cash Basis Method and Manufacturing or Inventory businesses usually operate on the Accrual Method.
The software should also help a business in establishing internal controls to establish procedures for tracking all income and payments to prevent fraud, waste, or carelessness. Making the right choice in the bookkeeping and tax software is essential and can help the business to function successfully.