3 Accounting Tools for Small Businesses | Business 2 Community

When working with an accountant, New York City businesses need up-to-date, simple accountancy tools that will help to maximize the benefits of the accountant?s services. Businesses that can effectively record transactions and organize information will be better prepared each tax season. Here are a few helpful accounting tools that are extremely beneficial when used correctly.

1. Income statements and other financial statements

Many small businesses assume that they only need to present financial statements for certain employees or transactions. Keeping a list of records will allow a business?s accountant more power to find relevant deductions and will help to secure against an audit, so keep an accurate cash flow statement for the best possible results.

2. Accounting software

This is an obvious tool, but some small businesses rely on outdated software simply because their accounting departments are more comfortable with older programs. This is a mistake, because newer software is often more technically reliable and may have features that could benefit the business tremendously. All businesses should invest in software licenses that allow for cheap or free annual upgrades. This keeps the software bug-free and well-adapted to new changes in tax code.

3. A strong organizational system

In order to present information to an accountant, a business needs a reliable method of organizing financial data. The aforementioned financial statements should be printed off and stored in a physical location, but the data should also be stored in an easy-to-understand way. Backups are important. Financial data should always be stored on RAID arrays or other redundant systems that have a limited chance of failure. For some small businesses, a large RAID server is an unnecessarily large expense, but web storage services from companies like Amazon and Google can fill the role nicely. The most important thing to remember is that the files should never exist in a single location?this invites an expensive disaster.

By finding the right software, storing and organizing data correctly and finding a great accountant, any small business can avoid the nasty surprises and high costs associated with poor accountancy.

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