Why Cloud Accounting Leads to Easier Record Keeping

Record keeping is the bane of many businesses existence. Knowing which records to keep and how long to keep them for can be an issue, but of course you also need to have somewhere safe and secure to store them.

There are many reasons why businesses are attempting to go paperless, with security being the main one, but increased efficiency has to come into it also. When going paperless, or simply cutting down on the amount of paper based records kept, there needs to be another option in order to keep the records you need and access them in the moments you need them. Cloud storage has changed the world in terms of storage, but when it comes to financial records, Cloud accounting is leading the charge forwards too.

Cloud accounting is a software package and service which allows businesses to employ the services of an accountant virtually. This means that all financial transactions and record are stored virtually in the Cloud, and can be accessed at any time by the business themselves or their accountant. Everything is always up to date, because everything is synced and kept in real time, and therefore accuracy is a given. In addition, mistakes are less likely because of the up to date nature of your financial records, and because you’re hiring someone who is highly qualified and knowledgeable in financial law and accounting techniques.

How Can Cloud Accounting Help to Make Your Record Keeping Endeavors Easier and More Efficient?

Because you need less paper! It’s that simple. You are utilizing Cloud storage at the same time, and you don’t have to worry about privacy because everything is encrypted more than once. You also have password protection and peace of mind that comes with it. Everything is backed up, and that means your records are literally in the ether, waiting to be pulled down if you need to look at anything or print anything out.

You do not need to keep endless reams of paper, which in itself causes a security and confidentiality risk. When everything is stored virtually and backed un to this extent, there is no need to have filing cabinets and no need to have endless print outs that you’re not sure how long to keep.

Put simply, Cloud accounting isn’t just a financial system that helps you keep a track of everything and allow your tax returns to be filed effectively and quickly at the end of the tax year. Cloud accounting is a way to store financial information safely and securely, so you can access it at any time you need to. No worries about things being lost, as your software will organize everything in a way which makes it super-easy to grab what you need on the go.

More and more businesses are opting to use Cloud accounting, rather than regular accounting services. Perhaps it’s time you got on the bandwagon too?

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

Why Cloud Accounting is a Cost Effective Solution

For any business, decisions need to be sensible and they need to be cost effective. The whole point of running a business is to minimize outgoings, ensure systems are in place for productivity, and to increase your chances of a profit. By making poor decisions, you’re not ticking those boxes, and instead, you’re leaking cash instead of making it.

Many businesses choose the wrong option when it comes to their accounting methods. Let’s face it, this is an in-depth area which requires careful thinking and expertise in order to get it right. By overlooking an important detail, you could be running the risk of missing tax deadlines, not reporting the right information, and basically putting yourself in the firing line for a huge penalty.

For That Reason, Looking Into Your Accounting Services and How You’re Going to Do It Is Vital

Unless you have a degree or equivalent in accounting yourself, knowing the ins and outs of the financial world can be difficult. Many businesses choose to outsource their accounting requirements to a qualified accountant instead, and that’s certainly a sensible option if you want to ensure all boxes are ticked. There is a sub-category within that however, and if you don’t consider it as a reality, you might be missing out on a very cost effective option for your financial needs.

We Are of Course Talking About Cloud Accounting

Cloud accounting is, as the name suggests, accounting which is done in the Cloud. For instance, you probably store many of your photos in the Cloud already on your phone, but this is a huge cyber world which can be used for other purposes too. Many businesses use Cloud storage in order to avoid having filing cabinets full of paper, but Cloud accounting enables you to store all your financial information in that same secure space, while also having the services of an accountant (virtually speaking) at your disposal.

For instance, you can employ the services of a Cloud accountant anywhere you choose; they don’t have to be in the same state as you, and that gives you extra flexibility in terms of choosing an affordable option, or someone who is specialized in your business area. Once you’ve chosen that person, your accounting and financial records are stored in the Cloud, so both you and your accountant have access to them, and you can make changes in real time, which the other person can see instantly. This cuts down on misunderstandings and double workload, and it also ensures that at any one time, you know your financial picture, without having to make phone calls and check records.

Put simply, Cloud accounting is a more cost effective solution because it saves time. You don’t have to second guess anything, it’s all there in front of you right at that second. In addition, you are able to shop around for an accountant who fits your needs, without having to go with what may be a more expensive option, simply because you have less choice.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

Is Cloud Accounting a Good Option For a Small Business?

A small business has less choice in terms of services than a large business. Would you agree?

The reason for this is cost. A large business will be able to afford to outsource certain tasks, opt for different services, and perhaps use technology to get a particular job done. A small business needs to watch their cashflow a little closer, until they start to grow the business towards ‘large business’ status.

Small businesses also have fewer employees than large concerns and that in itself means that many tasks need to be done by less people; i.e. someone who may not be fluent in sales may need to learn sales techniques, as well as their main role, which may be admin, just as one common example.

When It Comes to Accounting and Payroll, What Options Do Small Businesses Have?

There are two main choices here - firstly, a small business owner can do the accounting side of things themselves, or choose a member of staff to do it for them. This saves cash in outsourcing to an accountant, but it also increases the risk of a mistake, simply because that person may not be hugely experienced or qualified in financial law.

The second option is to employ the services of an accountant, but again, this can be expensive and there isn’t a real time option in terms of knowing the financial picture in the here and now. In order to obtain that picture, the business owner would need to arrange a meeting with the accountant or telephone them for an in-depth discussion.

There is another option, but it is up to the business in question to weigh up the pros and cons. This is Cloud accounting.

Cloud accounting requires certain software to be used, and enables a business to employ the services of specialized Cloud accountant. Because everything is stored virtually, i.e. in the Cloud, both the business and the accountant can access financial information at any time, and it’s all in real time. Obtaining an accurate financial picture is literally done in seconds, because you simply log on to the software and pull up the information you need. There is less chance of mistakes being made and double the work, simply because everything is there in that real time mode.

Now, is this a cost effective solution for a small business? In many ways, yes. Cloud accounting will enable a small business to concentrate on the here and now, and therefore know what position they are in at any given time. This helps with business growth, but it also ensures that less time is taken going over financial tasks that perhaps that person isn’t specifically trained for.

Time is money, and that also frees up small business owners and employees to be able to concentrate on growth, marketing, coming up with new product and service ideas, and also dealing with customers in a direct manner.

So, if we’re talking about time equating to money then yes, Cloud accounting certainly is a cost effective method for small businesses to use.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team

Five Ways Your Business Can Save on Taxes This Year

Nobody likes taxes, this is simply a fact of life. The other fact of life is that we have to pay taxes, whether we like it or not.

The good news is that as a business owner, there are a few ways you can utilize to cut down your tax bill a little, and therefore save cash year upon year. Of course, at first glance this looks impossible - you have to pay the tax that is due, right? Well, yes you do, but there are certainly completely legal ways which allows you to spread your tax or reduce it, while avoiding penalties and other late fees.

Let’s explore five ways your business can save on taxes this coming year.

1 Always File on Time

It might sound obvious, but the single easiest way to save on tax-related costs is to make sure that you file your taxes on time, to avoid late penalties from the CRA. These can vary in cost depending how late you are, and if you’re a repeat offender, you could be putting your business’ future on the line. Cut out the risk and make sure that you’re aware of when you should file, what you should file, and put plenty of time aside in the run up to filing season, so you’re not late.

2 Consider Cloud Accounting

Another way to make sure that you never miss filing time and always file the right information is to make sure you choose the right accountant. Traditional accountants are still a very high quality way to get the right information, but what about Cloud accounting? This is often a cheaper way to do your taxes and run the financial side of your business in general, while keeping everything in real-time. This cuts down on the chances of a mistake, and a mistake when filing your taxes could be costly.

3 Make The Most Taxable Deductions

Make sure you know what you can claim as a tax deduction, and make sure you claim for it! This can reduce your final tax bill down quite drastically in some cases, and a professional accountant will be able to give you up to date information on what you can claim back and what you can’t. Certain costs, such as home or office travel, costs related to operating, etc, these can all be deducted from your tax, therefore keeping cash in your business instead.

4 Move Your Income to a Family Member

Another popular way to reduce your tax bill is to transfer a portion of your income to a family member, usually a spouse, who has a lower tax bill than you do. This means you’re going to be paying less tax on that amount and you get to keep more within your business. Remember TOSI (Tax on Split Income) is out there and you need to be careful not to be caught up on this. Again, a qualified accountant will be able to give you more up to date information on this possibility and give you the best options for your personal circumstances. 

5 Use Tax Efficient Accounts

Finally, when investing your money throughout the year, make sure that you look into options which cut down on your tax bill. For instance, you get a tax deduction on your RRSP contributions, and TFSAs allow you to earn from investments and not pay tax on your withdrawals.

These are all ways you can save on your tax bill this year.

Contact your Accountants today click on this link —> https://capexcpa.com/contact

- The Capex Team