Archive for the ‘Bookkeeping’ Category

Goodbye “Old School” Data Entry – Hello Hubdoc!

Posted on:

Are you up to your eyeballs keeping track of receipts, invoices and bank statements? Business owners know that the CRA requires these supporting documents to be in order in the event of an audit. However, the time it takes to gather and input all this information throughout the year can seem daunting! We feel your pain and want to share a more efficient way to keep track of these necessary documents.

Introducing: Hubdoc! Hubdoc is a cloud-based software that helps you collect, manage and organize receipts, invoices and statements seamlessly. Here’s how it works:

  • Hubdoc automatically fetches the latest monthly bank and credit card statements from all major banks. It can also fetch monthly bills from a growing list of vendors. (Yes, it’s that helpful!)
  • Hubdoc keeps a digital backup of your receipts and invoices in one central location. These can be easily submitted to Hubdoc through automatic fetch, email forwarding, scanning or just taking a picture through their mobile app. (Yes, it’s that easy!)
  • Using machine learning technology, Hubdoc extracts key information such as vendor name, dates and dollar amounts from your uploaded documents. (Yes, it’s that smart!)
  • Hubdoc integrates with QuickBooks Online which can help you automate your bookkeeping. With a click of a button, you can export the extracted data from Hubdoc and automatically create a transaction in QuickBooks Online. (Yes, it’s that automated!)

Using Hubdoc to automate your data entry and bookkeeping chores will leave you valuable time to focus on expanding your business. To refresh your memory about Cloud Accounting, please refer to our June 2019 blog. To find out if Hubdoc is right for you, contact us anytime. Say goodbye to old school headaches and say hello to Hubdoc!

What is Cloud Accounting

Posted on:

Cloud accounting software is similar to desktop-based solutions, only they are hosted on the “cloud”. This means users will have access to their data from anywhere that has an Internet connection, and from any device – including laptops, smartphones, and tablets. 

Why should you adopt it?

One great reason is that cloud software applications are automatically kept current, so users no longer spend their time dealing with version updates. Cloud accounting also provides business owners the ability to get their information updates in real-time, anytime. Additionally, new features are being added regularly to increase productivity, which frees up precious time to focus on your business.

Similar to Netflix, most cloud accounting solutions carry a monthly subscription. No long-term commitments mean you won’t feel locked in with a specific vendor or cloud accounting technology. A monthly subscription allows you to manage your accounting records (including importing bank and credit card feeds), email invoices, and add useful third-party productivity improvement applications (applications are an additional cost).

What are the benefits?

Here are some other benefits to think about when contemplating cloud accounting solutions:

  • Access to extra software features that are not available on the desktop versions
  • Streamlined data-importing processes and built-in controls ensure superior data accuracy
  • Multi-user access
  • Unauthorized access prevention
  • Safe storage of financial data
  • Sync data automatically
  • Most accounting software companies are improving the features and functionality of their cloud-based software, NOT their desktop software

Still unsure if cloud-based accounting solutions are for you?

Here’s where we can help. We’ll provide a thorough analysis of your situation to ensure you are moving to the right software environment. Once you’re ready to move forward, we can help transition from the desktop applications you may presently be using into the appropriate cloud-based solution. Call us today and follow the “cloud”!

Bookkeeping – Working Smart

Posted on:

Bookkeeping is not just entering transactions, reconciling your bank statement and saying, “I’m done!” Bookkeeping lays the foundation for everything that is extracted from your financial data, and business owners deserve data they can trust. Good bookkeeping does require work, but working smart now saves time, money and headaches later. Here are some tips for working smart.

Be organized and efficient – We’ve all been there – scouring pockets, wallets and vehicles searching for a missing receipt from months back. That’s human, but frustrating nonetheless. However, when you have a consistent and secure location for receipts and allocate expenses as you pay for them, you decrease the risk of missing receipts or transactions.

Be software friendly – Trying to save money by not upgrading to the latest software or software update is not working smart. Not using current software can leave your files vulnerable to cyber hackers, not to mention the frustration of a slow and glitchy software experience. Keeping current also means you’ll benefit from many new features and improvements that can make bookkeeping easier and more efficient.

Be financially separate from your business – It may take some time to set up business accounts and credit cards but doing so is working smart. It’s much easier to track business transactions, and you’ll save money as your accountant won’t have to spend time sorting business vs personal transactions at each year end.

Be reconciled to reconcile – Reviewing your bank statements, credit card and vendor statements monthly (at the very least) can help you catch errors or potential fraud early in the game.

Be mindful – Use a sticky note, set an alarm in your calendar – whatever it takes to prepare and file sales tax, employment and payroll tax, worker’s compensation and income tax ON TIME. Also, remit the amounts owing ON TIME to avoid penalties and interest.

Be careful – If your bookkeeper is unsure about the posting of any unusual or complicated transaction, they should seek guidance from your accountant. A quick call can save a lot of trouble down the road.

Working smart may mean some extra effort and diligence today, but is definitely worth it to have a successful tomorrow!

Cloud-based Bookkeeping Software – A Word of Caution

Posted on:

Over the years we’ve learned that:

  • A “server” doesn’t always refer to the person at your favourite restaurant;
  • A “router” isn’t simply a power-tool; and
  • a “floppy” doesn’t merely describe your best sun hat!

Perhaps now you’ve heard the latest “techy” phrase “the Cloud” and you’re wondering: What is this “Cloud” anyway?

The “Cloud” Defined?

Basically, the Cloud is the Internet. The Internet hosts certain software packages that users can access anywhere via an Internet connection, as apposed to installing software directly on their personal computer. In fact, there are Cloud-based products on the market now to do your bookkeeping, such as QuickBooks Online, Wave and FreshBooks, to name a few.

These products boast of their accessibility, drastic simplification and user-friendliness. While we don’t necessarily disagree, we would like to offer a word of caution to business owners.

Cloud-based Bookkeeping – Our Caution

Would you trust someone without a valid driver’s license to drive you to Florida just because your car had an automatic transmission, was self-parking, and had hands-free phone access? A ridiculous concept indeed! However, as accountants, we’ve seen many business owners doing something quite similar. They’re putting too much trust in the automated “ease of use” claims of the Cloud-based software companies, reasoning that they no longer need an experienced bookkeeper “at the wheel”.

Here’s what we’ve noticed:

  1. Many times, the individual preparing the books has no prior bookkeeping experience.  This is a bad idea and leads to very messy bookkeeping – garbage in, garbage out.
  2. A frequent feature for these Cloud-based bookkeeping packages is the ability to upload your bank activity right from your bank account into the bookkeeping software. This is a beneficial feature for sure. But if not set up properly from the start, each time the bank transactions get uploaded, the books get worse. For example, it’s tricky getting the income and expense accounts set up for bank transactions. If done wrong, your books quickly become unusable for your accountant.
  3. In most cases, we find that before any year-end work can begin, the books must get fixed first.  In fact, there have been several instances where fixing a client’s books has taken considerably longer than the time it takes to prepare their year-end financial statements and tax returns.

Therefore, we urge you, when it comes to bookkeeping – use the cloud, but don’t keep your head in the clouds!  Please ensure you have responsible personnel at the wheel. Why not consult with us about your choice of bookkeepers or bookkeeping packages. We can help you make sense of it all and make informed decisions for your business.

* = required field