Tracking Income and Expenses: How payroll tax software can help your business.
A crucial part of any small business accounting system is the activity of tracking income and expenses. To measure income the small business owner will obviously need to implement some accounting tools.
Whether you choose to use a comprehensive business accounting software package or a simple checkbook program, keeping track of your income and expenses accurately and efficiently can mark the difference between a flourishing and failed small business.
From measuring sales to calculating payroll tax, financial software can help you track your income and expenses easily and efficiently.
Simplifying Your Income Tax Returns
As a business owner you are required to conform to current income tax laws. With manual accounting, an update in income tax laws means hours of laborious changes. If you use payroll tax software, the switch is quick and easy.
Income tax laws and tax calculations are all taken into account in QuickBooks accounting software solutions. QuickBooks software has automatic tax law upgrades; these upgrades ensure that your payroll software is always up to date.
With QuickBooks payroll tax software there’s no guesswork or any unpleasant surprises lurking around the tax corner; you can rest assured that you’ll always be prescribing to current income tax laws.
Income and Expense Tracking: The Big Picture
There are essentially three tasks that need to be accomplished by a small business accounting system: tracking your income and expenses, generating business forms, and maintaining detailed records.
Using small business accounting software can drastically cut down on guesswork, inaccuracies, and the manual accounting associated with the above tasks. QuickBooks is renowned for ease of use, accuracy and adaptability. Contact us, to find an accounting software solution to fit your unique business needs.
Simple vs. Smart Tracking Tools
If you choose to track income and expenses without using an accounting software solution, you face number of challenges – such as keeping track of changes to tax laws (QuickBooks payroll tax software does this automatically) and inaccurate cash flow statements.
It’s important to realise that if you decide to use a checkbook program to measure your income you are, in fact, using a cash-based accounting system to track your income and expenses.
A cash-based accounting system offers a simplified, easy to understand process; it also carries a number of pitfalls: there is the threat of potential inaccuracies and imprecise tax calculations such as payroll tax (which could result in penalties).
Furthermore, cash-based accounting doesn’t reflect the accurate state of your business income and expense flow. You also can’t track outstanding amounts that have already been invoiced. This in turn means that you can’t ensure you follow up and receive payment from customers.
The same can be said for tracking expenses; outstanding bills aren’t accounted for and may cause you financial problems once you default on payment.
Using a financial software package to track your income, maintain your cash flow or simply for facilitating payroll and tax calculations is often the most reliable, rewarding solution.
Choosing the Best Business Software
You need to consider a few key factors before picking a small business accounting software package. What’s the accounting proficiency of the person who will most be using the program most? What about the size and complexity of your business?
QuickBooks offers easy-to-use financial software. Begin with QuickBooks SimpleStart – it’s simple and effective. What’s more, you can effortlessly upgrade to a more advanced QuickBooks accounting system at any time.
Benefits of QuickBooks Accounting and Payroll Tax Software
- Reliable payroll and tax software. (Choose between Quick Payroll and Quick Payroll Lite)
- Richer user experience with comprehensive accounting tools and features for your business.
- Automatic tax law upgrades.
- 100% compliant with all tax and legal requirements for any new tax year.