Congratulations. You just opened your own business and are raring to get started. You have a great concept, you've carefully thought through your business model, your friends and family all agree you have a winner, you have negotiated your office space, lined up suppliers and lenders and even remembered to obtain all the permits and licenses that you need.
Just one more item needs to be addressed. Do it right and you will have a solid tool to help you. Do it wrong and you are looking at an Excedrin headache. Welcome to the world of accounting.
Why do you need an accounting system? Accounting is the language of business and these days it's a necessary part of your organization. Your accounting system is an invaluable tool to help you manage your business by providing useful reports that tell how you are doing, what challenges you are facing and whether you can afford to take advantage of new opportunities.
Our friends at the IRS also have a vested interest in your records which you will need to support your tax returns. In addition stakeholders in your business such as partners, bankers and other lenders will require an accurate accounting of your activities.
Some questions you may have:
• I'm not an accountant. What do you recommend? Not to worry. There are software packages out there that are designed for the non-accountant and with some help setting up your system, you should be up and running with a little training.
• What features do I need? That depends on your business. Here are common modules to consider.
Inventory.
If you are selling a product you probably need an inventory module in addition to point-of-sale software. If you are selling many products you definitely need an inventory module. Inventory is the heart of your business and close tracking of your products is a must. Buy too much inventory and you are tying up too much money. Buy too little and you risk losing sales.
Payroll and timekeeping.
If you have employees, your payroll module is critical. And if you ever thought about doing payroll on your own, don't even think about it! Payroll is a complex area that is best left to the pros.
Job costing for contractors.
If you are a contractor you need to track costs by job to be sure you are making a profit. Job cost software will help you prepare estimates, bids and invoices for your jobs and will provide valuable history for future jobs.
Manufacturing and assembly. If you manufacture and/or assemble products, there is help in tracking the availability of parts along with their costs.
• So what is all this going to cost me? It depends. But there is software that is designed for small businesses that is very affordable, yet very powerful. Costs you will incur include one-time setup fees (get this right and life is good), training (there is a ton of information on the Internet and from vendors), and maintenance and support (you will want to keep up-to-date in order to take advantage of new features). In addition you want to have somebody you can call when you have questions.
• Other considerations. Depending on your business, you should think about how your system will support your operations.
• How mobile is your business? Do customers come to you or do you go to them?
• Do you need your system in an office or store, or would a Web-based system meet your needs?
• Do you need to process payments in the field when services are rendered?
• Do you have such a high volume of payments you process daily that remote deposit features would save you time running to the bank?
• Do you plan to sell your products or services online so that you need to set up secure payment methods?
The good news is there is a lot of support out there to help you take care of the back office, so you can bring your dreams to reality.
Bryce Jones can be reached at
(760) 519-3766.
Just one more item needs to be addressed. Do it right and you will have a solid tool to help you. Do it wrong and you are looking at an Excedrin headache. Welcome to the world of accounting.
Why do you need an accounting system? Accounting is the language of business and these days it's a necessary part of your organization. Your accounting system is an invaluable tool to help you manage your business by providing useful reports that tell how you are doing, what challenges you are facing and whether you can afford to take advantage of new opportunities.
Our friends at the IRS also have a vested interest in your records which you will need to support your tax returns. In addition stakeholders in your business such as partners, bankers and other lenders will require an accurate accounting of your activities.
Some questions you may have:
• I'm not an accountant. What do you recommend? Not to worry. There are software packages out there that are designed for the non-accountant and with some help setting up your system, you should be up and running with a little training.
• What features do I need? That depends on your business. Here are common modules to consider.
Inventory.
If you are selling a product you probably need an inventory module in addition to point-of-sale software. If you are selling many products you definitely need an inventory module. Inventory is the heart of your business and close tracking of your products is a must. Buy too much inventory and you are tying up too much money. Buy too little and you risk losing sales.
Payroll and timekeeping.
If you have employees, your payroll module is critical. And if you ever thought about doing payroll on your own, don't even think about it! Payroll is a complex area that is best left to the pros.
Job costing for contractors.
If you are a contractor you need to track costs by job to be sure you are making a profit. Job cost software will help you prepare estimates, bids and invoices for your jobs and will provide valuable history for future jobs.
Manufacturing and assembly. If you manufacture and/or assemble products, there is help in tracking the availability of parts along with their costs.
• So what is all this going to cost me? It depends. But there is software that is designed for small businesses that is very affordable, yet very powerful. Costs you will incur include one-time setup fees (get this right and life is good), training (there is a ton of information on the Internet and from vendors), and maintenance and support (you will want to keep up-to-date in order to take advantage of new features). In addition you want to have somebody you can call when you have questions.
• Other considerations. Depending on your business, you should think about how your system will support your operations.
• How mobile is your business? Do customers come to you or do you go to them?
• Do you need your system in an office or store, or would a Web-based system meet your needs?
• Do you need to process payments in the field when services are rendered?
• Do you have such a high volume of payments you process daily that remote deposit features would save you time running to the bank?
• Do you plan to sell your products or services online so that you need to set up secure payment methods?
The good news is there is a lot of support out there to help you take care of the back office, so you can bring your dreams to reality.
Bryce Jones can be reached at
(760) 519-3766.