Cloud Technology Has Business Advantages

Author: Keith Huggett

Any change in business operations should come with a careful analysis of how it will affect the company, both financially and culturally. This is particularly true for crucial financial functions like bookkeeping and accounting, as changes in these systems can have a larger impact. Switching to a new system is always daunting, but the benefits are often well worth the effort.

Consider the ways that cloud-based accounting can improve your business:

• Lower costs: Cloud-based systems are generally less expensive than purchasing accounting software, especially when you factor in lower IT costs, software and license renewals and time saved.
• Improved security: If you have all of your financial data stored on one desktop or laptop computer, you could be in for a devastating surprise if it is lost, stolen or damaged. Even with regular backups, key financial information could be compromised. With cloud-based accounting, all of your data is stored on remote servers, so even if hardware is damaged, your financial information is always protected.
• Flexible access: Cloud-based accounting systems give you the ability to access your information from anywhere, including your mobile device. It is also easy to add multiple users with customized permissions so key personnel can readily access the reports they need, when they need them, without waiting for another person to do it.
• Better business processes: Financial data entered into a cloud-based accounting system is automatically updated so that every user has access to the same information in real-time. This means less travel for your CPA, more accurate reporting and the ability to make faster decisions.
• More time: Improvements in efficiency will allow you and your employees to focus on more strategic efforts, rather than the mundane details of bookkeeping. Your IT staff will also have more time to dedicate to larger organizational issues.

If you are ready to make the switch to cloud-based accounting, let The Tax Office Inc. guide you through the process. We'll help you select the right package and set up your back office support system so you can free up more time to manage your business, not your bookkeeping. Contact us here for any cloud-based accounting questions.

Virtual Bookkeeping Full of Advantages for Businesses

Author: Paul Cantelli

As a small-business executive, you're probably used to doing a lot of things for yourself. Thanks to  the advent of cloud computing, you can shed some of your IT management duties. One of the most exciting applications of cloud computing is in cloud-based accounting. Moving your books to the cloud will help your business in three different ways.

Increased security

How secure is the server that holds your accounting system? Do you have all of the latest computer security tools and software to keep hackers away from your business' most sensitive data? Is your server located in a weather-proofed building with backup generators and multiple layers of physical security to keep criminals from stealing it?  If you're using cloud-based accounting, the answer to every question is a resounding "yes." One of the key benefits of transitioning to the cloud is that your data gets access to the kind of multi-layered security that only the largest companies can afford on their own.

Better access

Cloud-based accounting makes it easier for everyone who needs access to get to your accounting data. This means that your employees can get access to the applications that they need wherever they are, you can access your reports when you are out of the office on business and your accountant can log in to review, complete and correct your books without you having to send them a data file. Many cloud accounting systems even offer access through secure smartphone and tablet apps, letting you truly have anytime, anywhere access.

Lower cost

As you know, traditional accounting software requires the purchase of an expensive software license, a server to run the software and additional cost to keep the server running and upgrade the software periodically. Cloud-based accounting bundles all of these services into a single low cost, usually billed monthly.

The tax and accounting professionals at The Tax Office Inc. have considerable expertise with today's cloud-based accounting systems. Contact us for help deciding if moving your accounting to the cloud is right for you and, if so, how to accomplish the transition.

Cloud Technology Can Streamline Business Management

Author: Paul Cantelli

Anyone responsible for running a business can feel chronically frazzled – there are just too many things that need your attention. You can’t do it all and do it well, too. Switching to outsourced accounting can save valuable time that you could – and probably should – be spending on your most critical activities.

Especially when it comes to managing your financials you can’t afford missteps. You need accuracy and timeliness to effectively direct daily operations and make smart decisions.

Outsourced accounting ties it all together.

Working in the cloud allows you to streamline all aspects of your accounting – data capture, retrieval, calculations and reporting. Cloud-based outsourced accounting easily integrates QuickBooks and Intacct accounting functions, accounts receivable and payable, payroll and periodic taxes and reporting, ensuring compliance with no slip-ups or risk of penalties.

You’ll have information at your fingertips to support annual and long-term tax planning as well as ongoing business performance analysis. That can help save money at tax time and improve your day-to-day operations.

Outsourced accounting does more than efficiently keep your finances on track.

Working in the cloud is faster and more accurate. You’ll benefit from:

• Uploading data or accessing files 24/7, from anywhere, assuring the mobility and flexibility essential to effectively manage any type or size of business these days.
• Top-flight security that safeguards your confidential or proprietary information.
• Automatic back-up and easy retrieval.
• Increased productivity, replacing manual labor with automation that eliminates mistakes, duplication of effort and time wasted on mundane, repetitive tasks.

You’ll save time on meeting travel and document transport and save money by eliminating the need for new technology, software, upgrades, IT time, storage, even office space. And you can hire the very best people, regardless of their location, because you’re working in the cloud.

The cloud may be invisible but it’s a solid business management tool, especially when it comes to accounting. Contact our experienced professionals at The Tax Office Inc., who can advise you about the most advantageous ways to adopt outsourced accounting, freeing you up to refocus your time and energy on your most important job -- running your business. 

Cloud Technology Requires A Learning Curve

Author: Paul Cantelli

All new technologies come with a lot of questions and a period of adaptation; cloud-based accounting is no different. In fact, because valuable financial data is involved, there tends to be even more questions and concerns. If you are exploring cloud-based accounting for your business, arm yourself with answers to the following common questions.

• Is cloud-based accounting secure? Data in the cloud is typically protected with advanced security procedures and encryption methods. You can also ensure data security by granting specific permissions to individual users. This can be even more secure than desktop software. With cloud-based systems, unauthorized personnel don't have the ability to log on and view financial data. With a desktop solution, this is not always the case.

• Where does the information go? When you enter financial data into your accounting application, it is stored and backed up on remote servers, usually several. This data is then available in real time to all users who access the application.

• What happens if the Internet goes down? Cloud-based accounting solutions generally require web access, but so do many of your other vital business functions. The beauty of the cloud is that you can access the data and software from anywhere, so if the Internet goes down in the office, you have the option to access and manipulate information from your laptop, or perhaps even your smartphone or tablet computer.

• Can we meet all of our accounting needs in the cloud? Yes. You can process payroll, pay bills, send invoices, submit time sheets, process credit cards, enter travel expenses, file tax forms and easily share up-to-date information with your accountant in the cloud. In fact, cloud-based solutions are much more versatile than desktop software, allowing you to integrate systems across your entire business.

If you have more questions about accounting in the cloud, or you want to get started, call us at The Tax Office, Inc. We can help you select and implement the cloud-based accounting solutions that make the most sense for your business and help you address any questions or concerns from your staff. Contact us today to learn more.

Changing Systems May Help to Grow Your Business

Author: Keith Huggett 

 In past articles we have talked about outsourcing your accounting services. We still recommend that. You need to focus your activities on your core business, which does not include doing your own accounting, however, we do need to talk about which type of accounting system you are using.

When you are first starting up your business or have been in business for a while, you may have started keeping your books using a cash based accounting system.  This system is fairly easy to use and records financial transactions when cash changes hands.  It keeps track of what cash you have on hand very well, but does not do well keeping track of future sales or long term payments. Depending upon how much business you are doing, you may need, or want to shift your system to an accrual accounting system.

An accrual accounting system is a "real time" accounting system. Financial transactions are recorded as they happen. As you might guess, a lot more time is required to manage this type of accounting system.  We most emphatically suggest that you outsource this activity.  Using this type of system provides infomation that can be used to indicate sales forcasts, key performance indicators, and financial reports.

The general set of accounting principles, standards and procedures that companies use to compile their financial statements, commonly called GAAP, require businesses that have $5 million in annual sales or $1 million in inventory sales to use an accrual method for their accounting system.  The accrual method is also the preferred method for businesses that wish to significantly grow.

If you have any questions regarding cash or accrual accounting systems, please contact the Tax Office, Inc. Our specialists would be happy to answer any questions you may have.  If you have any questions regarding outsourcing your accounting, bookkeeping or payroll services we would be happy to help you.

 3 Things to Consider About Cloud Based Accounting

Author: Paul Cantelli

Accounting in the cloud is an excellent solution for many small and medium businesses. However, there are some factors to consider before you take the plunge. While accounting in the cloud provides better efficiency, more flexibility and several other benefits, you must remember that you are dealing with sensitive financial information that should not be handled lightly.

Think about these three issues before you make the switch to accounting in the cloud:

1. Vendors: A basic search for any type of cloud-based accounting solution will quickly show you that you have a lot of choices. In fact, you have so many choices that it can be overwhelming to compare the various features, functions and pricing. You also need to consider how reliable a provider is, what level of customer service they offer, and how long they will stay in business.
2. Legal issues: If your business is subject to certain data handling requirements, either from an external body or from your own internal policies, it is important to work with a provider who can meet these requirements. Find out how the vendor protects your data and what their confidentiality and privacy policies are.
3. Data backup: Data in the cloud is generally safe, especially if your providers use multiple servers at multiple locations. However, because this data is so important, you may want to consider having your own backup. Some providers allow you to automatically keep a backup on your local server, while others may require you to manually export data and back it up. Make sure that your provider can accommodate your preferences and make it easy to back up your data if you want to. 

Focusing on Your Core Business 

Author: Paul Cantelli

Is accounting a core focus of your business? Is it an area where you excel? If the answer to either of these questions is no, you're like most people who own a small business. While accounting and bookkeeping are crucial to complying with tax law and to understanding what is going on with your business' operations, you can outsource accounting and bookkeeping duties to an expert third party. Here are five ways that this helps:

• Reduces your accounting costs: When you outsource accounting, you bring in experts with the right tools to get the job done quickly and efficiently. Instead of paying salaries, payroll taxes and benefits for your staff to fumble through the process, you just pay a reasonable fee to an expert.
• Provides better financial information: When you have a professional accountant handle your bookkeeping, you will get the benefit of receiving professionally prepared reports. This helps you better understand how your business is performing and where your money is coming from and where it is going. The professional statements you get when you outsource accounting may also help you get a loan since lenders typically require detailed financial reports.
• Keeps better track of cash flow: Have you ever been caught short without enough cash on hand to pay a vendor? When you outsource accounting, your accountant can help you plan your expenditures so that they better track your business' receipts.
• Saves time: Do you have time to do everything you need to? Getting outside help with your books frees you and your staff up to work on tasks that are directly related to your business.
• Plans for tax time: If you get your books to your accountant in February to file your taxes in April, it's already too late to plan. When you outsource, your accountant can help you plan throughout the year and save you money on April 15.

Are We There Yet?

Author: Chris Coggins

If you've been in business for a couple of decades, you've come a long way from paper ledgers and calculators.

If you're a young company, you take it for granted that you use accounting software, upload files and e-mail questions to your accountant, and e-file your taxes.

But there's another significant change in the works. Cloud-based accounting -- often called virtual bookkeeping or web-based accounting – is young, but elements of it are a reality today.

Someday, rather than buying all-inclusive desktop accounting software like QuickBooks, you'll choose solutions from an a la carte menu, selecting the best fit for your company, even if those applications come from different developers. They'll be integrated with each other, and all of your bookkeeping and related file-sharing and communication will be done over the Internet.

Clearly, we're not there yet. Some application developers have created single-task solutions with limited integration capabilities, but we're a ways from comprehensive cloud-based accounting.

At The Tax Office, Inc., we've begun the transition to tomorrow's financial management scenario. Our Back Office Support System (BOSS) is entirely web-based, and can meet all of your bookkeeping, payroll, general accounting and reporting needs. You simply fax or email your bills, payroll data, etc. to us, and we'll do the rest.

Your business will benefit in numerous ways.

• No more paperwork for you or your staff.
• No more worries about upgrades, backups or unexpected data loss. Your files and software will be meticulously maintained on our host servers.
• No more missing bill payments or payroll tax filings or any money-related obligations because you're away from the office. You'll have access to all of your financial information from any web-enabled computer.
• No more late-night struggles to reconcile accounts or make the books balance or create reports.
• No more guessing about your company's financial health or sweating taxes. You'll always know where you stand. And our real-time knowledge of your business will let us help you make intelligent, profitable plans.

We have decades of accounting, payroll and tax experience and expertise. Contact us today, so you can shed your bookkeeping responsibilities and concentrate on shaping your company's future.

How We Can Automate Your Accounting Workflow And Save You Time, Money And Headaches

Author: Chris Coggins

Financial management for a business can be a full-time job. In fact, depending on the size, type and complexity of your organization, proper accounting could require a full-time, experienced staff member or a team of professionals. In competitive economic times like these, and considering the cost of employing people, it's not always a viable solution to handle this work inhouse.

Our Back Office Support System (BOSS) can help. You get the benefits of an experienced accounting team in a more cost-effective, efficient model.

BOSS is a comprehensive, outsourced accounting solution. Our expert accounting team can complete the tedious daily tasks that take up your staff's time, tasks that don't add sufficient value for customers, the company or shareholders.

This solution takes advantage of myriad web-based connectivity and communication technologies. Your staff faxes or emails bills, statements and payroll data to our team on a regular basis. We handle bill payment and general cash flow management, payroll processing and tax filing, monthly reconciliations, W-2 and 1099 preparation, tax returns -- anything related to accounting. And we can help with your overall business strategy, especially as it relates to your financials.

There are numerous benefits of outsourcing your daily accounting functions through BOSS. They include these:

• Staff members that do have some financial expertise can concentrate on meeting your company's goals, creating business models and providing value-added analytics.
• You gain access to expert accounting resources on an ongoing basis at a fraction of the cost of full-time staff.
• Your information is readily available through online access at all times.
• You can take advantage of professional support and suggestions from an experienced accounting team throughout the year.

We provide a continuum of services, so you can choose the level that is right for you. For more information about how we can help drive efficiencies and save your company time, money and hassle, contact us today.

Taking Advantage of Virtual Services For Your Business

Author: Keith Huggett

Ever seen a virtual pet simulator? A favorite pastime of preteens, these games are available on most portable devices and computer systems. Kids feed these virtual animals, provide shelter and play with them, and seek medical care when needed.

In some ways, virtual accounting works in a similar, though more serious and professional,  fashion. It all happens through computer interactivity, but instead of pushing a button to give a dog kibble, you provide your financial information to a CPA firm, which does the bookkeeping work: the actual data entry, processing and reporting. You'll always know where you stand money-wise, without having to perform the grunt work.

Virtual accounting defined

Virtual accounting is a form of outsourcing that takes advantage of technologies like cloud computing, web meetings and shared work spaces. You're still the financial boss, but you save time (no more wrestling with QuickBooks) and money (minimal inhouse staff) -- and increase accuracy -- by having work completed by an expert offsite organization. The level of accounting completed by the outsourcing agency can vary according to your needs, ranging from payroll functions to financial reporting and tax return preparation.

Benefits of virtual bookkeeping

Here are some positive outcomes of pushing your books into the virtual, outsourced space:

• Virtual bookkeeping gives you access to financial information on any Internet-enabled computer. You can provide oversight and get real-time updates on the go.
• You can avoid the training expenses and large payrolls associated with bookkeeping tasks that can easily be handled by contracted professionals. Minimal inhouse coordination is needed.
• You'll retain complete control of your books.
• You can take advantage of the experience, knowledge and ongoing planning assistance offered by dedicated CPAs.
• Software and network management will be handled by someone else, thanks to the Internet. Your data is always backed up on secure remote servers.

Outsourced, cloud-based accounting is a relatively young practice, so your choice of a partnering firm is critical -- regardless of how much responsibility you are willing to turn over. We know accounting and we know technology, and we know how to make them work together successfully for you, and if you have any questions, contact us for a consultation today.