We received a question from one of our Elusive Moose readers who asked: I’m lazy and disorganized (the whole package!) so what’s the minimum amount of effort I can get away with (as it relates to my bookkeeping)? Having been in the small business world for over 25 years, I must say, I was taken aback by this question. How can you start, nurture, and grow a business but not want to have your hands in the books? Is there a “minimum effort” that’s really realistic? How Lazy is “Lazy”? So let me ask, how lazy is “lazy”? If you are willing to try anything, then you can certainly run your own books. You’re not lazy, but rather scared off by ‘accounting’. Really, it just requires some setup, some testing (recording your real transactions), then conversion (entering opening balances, deeper configuration, training, cutting the cord). Yes, you can do that. If what I just said freaked you out – work with a great bookkeeper who will explain it all, do most of the work, keep you in the loop and explain your reports weekly. If you simply want nothing to do with it, hire your mom to be your bookkeeper […]
All Posts By Todd Salkovitz
After building a successful consulting organization focused on implementing Mac based accounting solutions in the Philadelphia area, Todd has worked at MYOB, now Acclivity, for over 20 years and is focused on all facets of product management for AccountEdge, AccountEdge Cloud and Rerun.
Cash is king, right? Well, yes, but accrual accounting is the queen If you run a small business, no doubt the concepts of cash vs. accrual accounting probably make you hear elevator music. Probably something like Barry Manilow singing “Feelings….”.While I can’t change the song in your head, let me demystify the confusion. Cash vs. Accrual Accounting, by definition Cash-based accounting is the concept where income and expenses are recorded and recognized only when you receive or expend cash; (e.g.) you receive payment from a customer for work performed on their website, or you pay your monthly AMEX bill, or you write a check for new office equipment, etc. Accrual accounting takes it to the next level by tracking income when the work is performed (and you issue an invoice, therefore recording an accounts receivable) and expenses when incurred (and you receive a utility bill recording it as a purchase to be paid in 30-days, therefore an accounts payable). Cash based accounting does not recognize accounts receivable and accounts payable, because cash has not changed hands. Accrual recognizes events when they are recorded, not necessarily when cash changes hands. To add confusion, it may not always be an either or […]
When you outsource bookkeeping there are lots of questions you should ask the candidates. But first, there are some questions you should ask yourself in order to find the right person and develop the right system of checks and balances, which allows you to set their expectations and yours. Questions to ask yourself: How involved are you willing to be? How much control are you willing to give up? What shape are your records in? Are you satisfied with your accounting software? What reports do you want? How often? What reports does your accountant need? How often? Who does your bank reconciliation? How much are you willing to pay? Insist on a rock-solid set of internal controls, from your file cabinet full of receipts to your computer hard drive and shared online storage files. For example, we recommend that as a business owner you sign all of the checks and open all of the bank statements—literally open the envelopes or download the files yourself. Questions to ask your candidate: Now that you have determined your expectations and your level of involvement, it’s time to interview candidates and ask some hard questions, for example: What is your level of expertise? […]