There are a number of very good accounting software applications that you can buy and install on your computer. These are tried an true programs that are specifically designed to make your life easier when it comes to keeping the books.

But what if I told you that it could be even easier ? That’s right. You can save time (and maybe a little money) by using online applications to do your finances.

FreelancerSwitch reviews 7 of these bad boys so check em out!

This takes into account your sales (Money In), your expenses (Money Out), and your profits (Balance). If you’re a small one-man business, you may find that this is more than enough for your needs. And because Excel allows you to use its auto-sum feature, it will keep a running balance for you as you input any new figures. Yet if you find that you need to keep track of more information than Excel or any other similar chart program can manage, it’s probably time to start looking at more advanced alternatives.

Cost vs. Need
Of course, one of the things you should take into account first before updating your invoicing and accounts system is its cost-effectiveness. If it’s not going to offer you much more than what you currently have (whether that’s Excel or similar), then it’s probably not worth the extra outlay.

However, if it’s going to save you valuable man-hours, which can be spent marketing your business or attracting new customers, then it’s definitely worth the financial outlay. Better still, if you use an accountant or a part-time administrator to do your accounts for you, and the new software enables them to be completed in half the time, again it’s saving you money. So make sure you take the time to look at how much it would cost to upgrade, and how much you would save by doing so. This should then enable you to make a final decision.

Options to Choose From
Once you’ve decided that you definitely want, or need, to upgrade your current system, the next thing to do is decide what software you want to go for. There are literally thousands on the market, and all offer benefits over each other, as well as disadvantages. So, once again, take the time to look at what you need it for, and then narrow your search down to include just the software that will meet your specific needs. You can read more here about [ur=http://www.gowholesale.com/news/view/Choosing_Accounting_Software_For_Your_Businessl]choosing accounting software[/url].

Some excellent options include NetSuite, Microsoft Office Accounting Professional 2008, QuickBooks and Simply Accounting by Sage. They all offer unique selling points, so make sure you pick the right one for you, and your accounts will soon be running themselves.

Not to mention the fact that keeping good records about your income is usually required by law, although the number of records you need to keep are usually decided based on your location.

In this article, we will take a look at some of the documents you need to keep around both for determining how your business is doing and usually also by law. Remember that the specifics of your information (the number of categories you divide things up into and so on) are usually up to you, but the more organized you are, the better your business decisions will be.

Expenses

From your perspective, your business expenses are probably what are going to be the most important. Why not income, you ask? Because without an accurate accounting of your expenses, you will never have any idea what your actual profit is.

* Keep all your receipts! Any time you make a purchase related to your business, file the receipt away in the appropriate space. You’ll need them for income tax purposes if you are audited!

* Keep a record of expenses at least every month – depending on how busy your business is, that is. If you spend a lot on a regular basis, keeping your files smaller will help you to stay better organized.

* Employee information. Information on your employees is one of the most important record-keeping exercises from a legal standpoint. Not only do you have to maintain a file on your employees that documents their date of hire and date of leaving, you also need to keep records of their reviews and any complaints they make or that are made against them. Usually the retention period of these records is determined by local jurisdictions.

Cash Flow

As with expenses, the records you keep on your cash flow will be up to you to determine as far as specifics. Any records you keep when it comes to your profits and sales each year, just as with your business expenses, must be kept somewhere for the duration of your business in case of an audit.

Software

Fortunately for today’s entrepreneur, there are any number of software programs that do a wonderful job of keeping records of all facets of your business. Small business or large corporation, there is a software program that is perfect for you, and all you have to do is find one that suits your style.

Remember that good record keeping is not only important to your bottom line, but it may also be important legally as well. Being studious in your record keeping will mean a more successful business and more profits in the end.

Choosing Accounting Software For Your Business

Intuit’s QuickBooks is considered the market leader in small-business accounting software with Sage’s Peachtree generally regarded as the runner up. Microsoft Office Small Business Accounting, which has been renamed Microsoft Office Accounting 2007, is a newcomer with a small but very loyal market share. Sage Business Vision is a long-established product and a solid performer for many small to mid-sized businesses.

A Top Seller Does Not Mean It Is Your Top Choice

Looking at a list of top-selling small business accounting programs will not help you make a good choice. A best seller is not necessarily the best for your business. Many small business owners find it difficult to determine which accounting software solution is right for their needs. Usually they go about viewing software demos, listen to what their friends or associates are using, and then try to pick the one that they think will work the best.

A good place to start is by defining your business needs. Do you need invoicing? Accounts receivable tracking? Payables tracking? Payroll capabilities? Consider which of the accounting capabilities you require to meet those needs then compare the different capabilities offered by the different programs. This way you’re comparing all of your options to one standard: your business needs, which you have determined first. The best small business accounting software solution for your business will be the one that meets most or all of your needs.

Business Accounting Software Analysis

Use a simple spreadsheet to perform your own accounting software analysis. List the capabilities that your business needs in the first column. Use the additional columns to rate the capabilities of each of the accounting solutions you’re evaluating against the capabilities you need. A simple yes or no will work or you can place a check mark if they can and leave it blank if they can’t. You can also have a column for cost so you can see if additional cost will result in additional features for your business.
You can determine quite a bit of the accounting software’s capabilities by researching the vendor’s website. It is possible to download demo versions straight from the web, or you can either attend a demo or arrange one through the manufacturer who will be happy to help you find a demo.
Conducting a software analysis with a simple spreadsheet is an effective method of organizing your evaluation process so you can focus on the capabilities that are important in your business, and not get caught up in fancy features you really don’t need.
The following web sites offer information and sales sites for small business accounting software.
www.simple-accounting.biz
www.tgiltd.com
www.EverestSoftwareInc.com

Here’s a list of 10 of the best business freebies,
many from well-known companies like Microsoft and Office Depot:

Business advice
The Service Corps of Retired Executives provides free business advice on its Web site. The mentors consist of over 10,000 successful entrepreneurs and executives. You can arrange to meet with them in person, via email or through online discussion forums. Website: http://www.score.org

Accounting software
It’s no secret that small-business owners often have trouble managing the company’s finances. Microsoft offers a complete accounting solution for businesses with Accounting Express 2008. You can track expenses, invoices, employee’s salaries, etc.
Website: http://office.microsoft.com/en-us/accountingexpress/FX101729681033.aspx

Shipping materials
Simply by asking, the United States Postal Service will send you free shipping materials. Different-sized boxes, forms and stickers are all available to help you send out shipments and prepare mailings.
Website: http://www.usps.com

Website and email

Yes, believe it or not, you can have a business website with email addresses up and running today – at no cost to you. With Live Basics, Microsoft makes getting your site live – fast and easy. You get a domain name, hosting, 500MB of website storage space, 25 company-branded e-mail accounts, web site design tools and website reports. Not bad!
Website: http://office.microsoft.com/en-us/officelive/FX101534261033.aspx

Shopping cart

AgoraCart offers websites a free e-commerce shopping cart solution. You can choose from a simple design to a more complex one with a ton of features. AgoraCart truly makes adding a store to your site simple!
Website: http://www.agoracart.com/

Backlink checker

In order to improve your website’s ranking with various search engines, you should first know how many backlinks search engines like Google and Yahoo! have found on your URL. Simply enter your URL on the Site Reference website and you’ll have a detailed report in just a few seconds.
Website: http://www.site-reference.com/webmasterTools/backlinkCheck.php

Business cards

For a while now, VistaPrint has been offering 250 free business cards for free. True, you have to pay $5.45 for the shipping, but that is still dirt cheap. The best part is that overall consumers seem to be very impressed with the cards they receive. A great way to give your business that professional touch, without a lot of money spent.
Website: http://www.vistaprint.com

Business Courses

The Small Business Administration offers links to more than 40 free business courses. With subjects ranging from marketing, finance, advertising, management, etc., you’re sure to find something that will help to improve your company. Many of the courses were designed in cooperation with colleges and universities and offer up-to-date business knowledge. Each course is short, only taking about thirty minutes to complete.
Website: http://www.sba.gov/services/training/onlinecourses/index.html

Content

If you want to bulk your website up with content but don’t have the time or expertise to write the articles and don’t want to pay a writer, then ArticleGeek is for you. With thousands of copyright-free articles on a wide variety of topics, you’re sure to find plenty to keep your website full of informative articles. The articles are constantly updated, so you’ll always have access to plenty of fresh and up-to-date information.
Website: http://www.articlegeek.com

Business forms

Office Depot has a web page filled with hundreds of downloadable business forms: contracts, invoices, purchase orders, non-disclosure agreements, tax forms etc. If you need any type of business form or correspondence, this is the place to look.

Website: http://www.officedepot.com/renderStaticPage.do?context=/content&file=/BusinessTools/forms/default.jsp

If you’re looking for even more business freebies, check out www.searchfreeapps.com – there’s every type of business freebie imaginable on there, many of which have been tested by the site owners.

What is Cash Flow?
Simply put, a cash flow ensures that you have money both coming into your business, and going out on time. It’s just like running your household budget, but the difference here is obviously the size of the budget.

Your business needs to have money coming in to survive, and this will come from your customers and business associates. However, a good cash flow will also mean money going out, so your accounts are kept up-to-date with suppliers and loans are paid on time. Failure to have a smooth cash flow could cause serious problems, not least the closure of your business. So you can see why it’s essential to have a constant flow of cash to ensure both sides of your business are met.

Problems to Avoid
Having a good cash flow is only the start. Once you have a system in place, like any system it needs maintenance. If you don’t keep up-to-date with what’s happening with your business’s finances, you could soon find yourself in too much trouble to get yourself out of. For example, if you receive confirmation of an order, you’re obviously going to have to pay for manpower and materials to complete the project.

However, paying for these overheads requires money up front, before completion of the order. And since you don’t get paid until the order is finished, you could soon find yourself out of pocket if you don’t have a steady cash flow to cover you until your customer pays you.

Set-Up and Maintenance of a Cash Flow System
To make sure you stay in control of your cash flow at all times, it’s important that you set up a cash flow system correctly in the first place. Additionally, making sure it’s easy to maintain on a regular basis is just as important. Thankfully, setting up a cash flow chart is as easy as knowing how to use Microsoft Excel.

By setting up two columns for your expenses – one for your incoming, one for your outgoing – you can see at a glance what the plus or minus figure is, and budget accordingly. If you’re not too sure about doing this yourself, you can buy accounting software that will do everything for you (read more about selecting accounting software ). If this is still out of your knowledge range, then look at hiring an accountant to run the financial side of your business for you (read more about finding an accountant ).

Maintaining your cash flow is just as simple, and all it requires is for you to keep the information up-to-date. Set aside a time of the week to input all your expenses and incomings for that timescale, and you won’t run the risk of forgetting simple amounts. With this system in place, you’ll be able to forecast your whole business year ahead, and plan accordingly

Of course, the time and money that you save will only come after you have purchased the right accounting software for your business – and that will only happen after an initial investment of both time and money on behalf of your business. In this article, we will take a look at some of the important factors in selecting an accounting program that is an ideal match for your business.

The most popular accounting programs

When it comes to accounting software, three programs rule the roost as far as popularity. Keep in mind that popularity alone should not be your only consideration, but it’s a pretty safe bet that these three packages did not become the best selling accounting computer applications without giving users what they needed.

* QuickBooks : This program has the largest market share of all accounting software packages. There are several different versions available, catering to a large cross section of businesses, both big and small.
* Peachtree Accounting : One of the oldest accounting applications out there.
* Microsoft Small Business : A recent innovation by the software giant, this package is best used when your financial operations are integrated with other Microsoft products such as MS Office or Excel.

Now, if you have taken a look at any of these packages and are a Mac user, you are probably feeling left out in the cold. None of the top three accounting software packages will work on a Mac platform, let alone Linux.

Selection Criteria

Whether you are working on a Windows platform or are looking for an accounting software package that will work with a different operating system, there are a few guidelines to keep in mind.

* Price . The first consideration for any small business owner will be price. The tricky thing with software, and not just accounting software, is that different features will add to the cost of the overall package. You don’t want to overpay by buying a package with applications that you don’t need, but you certainly don’t want to buy a low cost software package that does not include some vital accounting processes.

* Applications . Hand in hand with price comes determining which applications you want to see included with your accounting software package. If you aren’t using your computer network to calculate your payroll, you don’t need payroll applications. You should also make sure that your software package includes formulas for adding any applicable taxes to your business. In short, make sure to carefully read the package to ensure that everything you need is included, and that you won’t be buying a bunch of stuff you don’t need.

Incidental considerations (things you probably have already thought about, but deserve mentioning anyway) include the amount of space available on your computer or network, backup programs with the software (the very last thing you need is any of this information disappearing!) and of course your operating platform.