June 25, 2021

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The Best Accounting Practices to Keep Bookkeeping on Track

3 min read

Accounting practices for businesses have to be precise as they are counting on bookkeeping to manage their finances. Without proper bookkeeping, your accounts won’t be accurate, and the IRS doesn’t take kindly to inaccurate reports and accounts of a company.

Capturing time accurately

Disgruntled clients can damage an accounting practice and it can be nightmarish trying to track employee time accurately. An accounting firm needs to be able to capture time accurately if it wants to bill accurately.

Time and billing software for accountants from ImagineTime does this for you and is a superb choice for accounting firms. The software can be a traditional desktop application or accessed via the cloud.

Such software has to be compatible with mobile devices, as clients these days are working remotely and mobile apps for Android and iOS devices ensure complete mobile timekeeping capability.

Keep up with technology

It’s 2021 and with Covid-19 hovering around, accounting firms have had to move online. They just have to embrace technology and learn how to continue being effective online.

Nobody knows how long the virus will be around – maybe forever – so it’s worthwhile to invest in good technology to continue to meet your clients ‘face-to-face’. Every accounting firm will have to get used to words such as a microphone, video, VPN usage, encryption and password management, among others.

Auditing services

An accounting firm can offer different services but businesses mainly want services such as accounting and auditing. A business needs to know from its financial records what its revenues and expenses are. A business needs to know what its overall financial health is like if it wants to look at long-term planning.

Sluggish cash flow, late-paying clients, and unexpected expenses can rock a business negatively, and accounting firms need to conduct audits by looking at financial records and seeing how the business stands up to the business goals of the company.

Tax services

If an accounting firm wants to stay on track, it has to offer tax services to small and large businesses. Tax is complicated and businesses have to pay different kinds of taxes – local, state, and federal, not to mention the kinds of taxes determined by the type of business being run.

Finding yourself on the wrong side of the IRS can be a costly mistake. Tax services are offered by those accounting firms who want to stay in business.

They specialize in filing and preparing taxes. With their tax experts, they have in-depth knowledge of tax regulations and are aware of submission dates and how to ensure legal compliance.

Payroll and employee information

The bookkeeping company that learns to diversify its services won’t miss out on gaining more clients. What happens if a business doesn’t keep proper track of employee information?

The employee database has information on the employee such as age, gender, date of birth, nationality, school and tertiary education and more. Perhaps due to covid-19, the employee database hasn’t had a regular check for discrepancies. Inaccuracies can lead to mistakes snowballing, leading to wrong contributions and deductions.

Payroll, too, gives many businesses the jitters if they haven’t maintained employee records. An accounting firm can prevent legal issues and clients from losing trust in a business that has fallen on the wrong side of the law.