7 Steps to Get Started with Your Business Accounting

7 Steps to Get Started with Your Business Accounting

Have you found the right business idea, built your business plan and completed all the paperwork for starting a new business? Congratulations, you are about to launch your entrepreneurial project! Before launching, you will have to think about your business accounting. We know, this is probably not the most exciting part of your business launch, but planning and organizing your accounting is essential. We suggest you follow these 8 steps that will help you to get started on the right track.

1. Make a chart of accounts

The chart of accounts is an orderly collection system of financial information. It is the basic tool needed to prepare the financial statements that you will have to produce at the end of the fiscal year. The chart of accounts makes it possible to classify the accounting operations according to a standard of presentation. We always distinguish seven major classes (accounts) used for accounting purposes, regardless of the type of chart of accounts.

Once you have created your chart of accounts, you can then import it into the Kiwili software to classify and organize the different account movements.

Want to know more and have chart of accounts examples? Read our article Free Chart of Accounts, 5 models to discover.

2. Open a business bank account

In Canada, opening a professional account is only mandatory for business corporations. However, even if sole proprietors have no legislative constraint, we suggest you to open one. Having a small business bank account allows you to differentiate between your private and professional transactions and thus simplify the management of your cash flow. This will also allow you to facilitate any tax audit operations.

3. Learn about sales taxes

Depending on where you opened your business, different procedures apply to sales taxes. The country of your customers also plays a role in taxation. So do your research on the rules in place to properly charge sales taxes to your customers. If in doubt, ask your accountant, who will be able to guide you.

4. Determine how you will get paid

As a freelancer, solopreneur, or small business, online payment is the easiest, fastest and safest way to get paid. With Kiwili’s accounting management software, it’s easy to receive online payments through PayPal and Stripe. All you need to do is create a PayPal or Stripe account and then configure the integration in Kiwili.

Once you found your first customer, you’ll just have to send an invoice, and get paid online effortlessly!

5. Manage your business expenses

As a general rule, you can deduct any reasonable expenses you incurred or will incur to earn business income. So keep your receipts and enter your business expenses in a management software like Kiwili. Using a software to manage your business expenses will be helpful in tracking your cash outflows and tax amounts paid.

6. Manage your cash flow

Cash flow is the inflow and outflow of money into your business. In fact it is about the power to finance his daily expenses thanks to the sums of money available. Cash flow is therefore a very important point in running a business. It is an indicator of its viability and sustainability. Cash flow problems are indeed one of the main causes of business bankruptcies.

Use Kiwili’s treasury features to help you manage your business budget and cash flow.

7. Do your bookkeeping

A business must keep the records of all the daily accounting operations carried out in the fiscal year. Bookkeeping plays a critical role in any business. Not only does bookkeeping keep record properly organized in order to accomplish annual taxes, but it can also be helpful when it comes to making business decisions.

You can decide to do the bookkeeping yourself, or outsource this task to an accountant.

 

Note that it is mandatory to keep certain administrative and accounting documents. The type of document to keep and the retention period depends on the region in which your company was incorporated.

It is important to always keep in mind that financial management and accounting is a big issue in a business. If you follow this list, you will at least have your accounting in order from the beginning of your entrepreneurial project. You will start on the right foot and ready will already be aligned to success!

 

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Kiwili is an all-in-one business management software. It is at the same time an easy invoicing software, an accounting software, a CRM, a convenient project management tool and a time tracking software. Everything you need to manage your business like a pro!

9 Productivity Tips to Save Time at Work

9 Productivity Tips to Save Time at Work

As an entrepreneur and self-employed person, how often have you wished days were longer so that you could get stuff done on time? We all do! Have you ever wondered if there are ways you could work better or organize the day to be more effective? Here are 9 productivity tips to save time, do more, enjoy life, and reduce stress.

1 – Make lists

The first thing to do at the start of your day, is to make a list of everything you need to accomplish. This will give you a clearer perspective of your workload. Choose the method that suits you best – write on a paper or Post-it, type it on your computer with a simple tool like Evernote… Do what works for you. Kiwili can help you to do that. You can even add task with your mobile.

2 – Identify priorities and urgencies

Once your list is established, it is important to know the order in which you will proceed. Set priorities and deadlines for each task.

3 – Group similar tasks together

You will be more efficient if you group tasks from the same category and complete them during the same period of time. For instance, allow specific time to make your prospecting calls, dedicate another chunk of hours to processing emails, another for sorting papers, etc.

4 – Delegate

Despite entrepreneurs often being jacks-of-all-trades, you must concentrate your energy on what you do best and delegate where possible. You will save time, be more efficient, and improve the quality of your work. Consider using virtual assistants.

5 – Use the right tools

There are loads of free tools and applications to help you work more efficiently every day and to better manage your business. Use Kiwili daily to manage your accounting, organize your tasks and projects, track your time, collaborate with clients, and more! Using a software like Kiwili will make you more organized, structured, and save you lots of time.

6 – Stay focused

It is very easy to be distracted, especially when working from home – social networks, television, household chores… the list is infinite. To keep focused, develop the habit of concentrating on one task at a time (no multitasking!). Turn off your cell phone if you need to or disable alerts. Also, where possible, check your emails only 2 to 3 times a day.

7 – Take breaks

To be more effective, taking breaks is important. To stay productive, allow yourself a few breaks during the day and take your mind off work a little. Go for a walk outside, take a micro-nap, eat a healthy snack, phone a friend, etc. Do something that is most rewarding to you.

8 – Don’t procrastinate

This one is pretty straightforward: respect the deadlines you have set and do not put off what you have planned to another day.

9 – Say no

You will perhaps be tempted to say yes to every contract offered. However, learn to say no if you feel you’re doing too much and your workload is too heavy. In doing otherwise, you risk not giving the client your best work and accumulating stress. It is better to accept fewer mandates and to do them correctly so that your client will want to do business with you again.

Don’t forget to use Kiwili: it will save you time running your business!

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Kiwili is an all-in-one business management software. It is at the same time an easy invoicing software, an accounting software, a CRM, a convenient project management tool and a time tracking software. Everything you need to manage your business like a pro!

6 Tips for Managing Your Business Accounting Successfully

6 Tips for Managing Your Business Accounting Successfully

As an entrepreneur, you must be structured and not overlook anything. You must have an action plan to be able to reach your future goals. You also need to know how to reach your customers through effective marketing. Finally, it is important to be on top of your finances in order to make the decisions best suited to your situation. In order to do this, keep ALL your invoices and receipts. These will give you a comprehensive picture of your financial situation.

Read on to discover our tips to help you manage your business accounting successfully.

1- Sort your expenses by category

Sort your receipts and place them in different envelopes or in a compartmentalized binder. Also, since your expenses may not all be fully deductible, find a way to categorize items by deductibility. You could write a note or put a special stamp by category (100% deductible / partially deductible / non-deductible).

2- Keep up with the evolution of your sales

If you have an accounting software, you probably already know the evolution of your sales. You can also pull out a cash flow statement allowing you to know your profitability in the short term. In the event that you are not profitable, you could consider different solutions:

  • Review your prices. Have you set the right price for your services? If you have doubts, try this magic formula to calculate your hourly rate:
    Hourly rate = (desired annual salary + annual taxes + expenses + holidays and statutory holidays) / Number of hours worked
  • Review your marketing strategy: are you targeting the right niche? Do you have good marketing tactics and strategies in place to target your potential customers?
  • Look at your expenses: are they too high? Where could you save money?
  • Look at your service offer: is it comprehensive enough?

3- Establish a billing method

As an entrepreneur, you most likely have to charge your customers. It is therefore important that you:

  • Send professional and personalised invoices that include all essential elements to make them effective
  • Keep a record of your invoices

Did you know you can accomplish all these tasks easily with Kiwili? Kiwili also takes care of your accounting, project management, CRM, and more!

4- Don’t forget to do your bank reconciliations

Many entrepreneurs are tempted to neglect this part. Yet bank reconciliation (or account reconciliation) is important if you want to get a fair picture of your financial health. It can happen that you have figures in your accounts that are not registered on your bank statements and vice versa.

5- Review your financial statements regularly

When you are starting out, review your financial statements monthly. This way, you can easily gage your financial health. You’ll also be able to verify whether or not you’re sticking to the financial forecasts set in your business plan. When you move from the start-up phase, quarterly financial statements are sufficient.

6- Consult your accountant

As an entrepreneur, you must have someone to rely on to make sound financial decisions. Your accountant can advise you on what steps to take next in your business and what strategies to follow. Your job is to run your business, not to do the accounting – another reason Kiwili is there for you!


About the author : 
An entrepreneur since the age of 22, I sold my beauty business to start a family. I now work in accounting with the aim of becoming a CPA. Ever attracted to the world of business, I strive to learn more and to inform other.

To find out more about Sabrina Brousseau-Arsenault, check out her Facebook page and website.

We invite you to read our article about the free chart of accounts, 5 models to discover.

Don’t hesitate to consult the blog of Kiwili to find a lot of articles concerning the entrepreneurs and the autonomous workers !

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Kiwili is an all-in-one business management software. It is at the same time an easy invoicing software, an accounting software, a CRM, a convenient project management tool and a time tracking software. Everything you need to manage your business like a pro!

5 Tips for Starting a Business Successfully

5 Tips for Starting a Business Successfully

Starting a business is not easy and often involves an obstacle course of administrative hurdles, frustrations, disappointments, and more. However, by being vigilant, avoiding traps and being tenacious, you can succeed. Discover our tips for running your business successfully.

1 – Be determined and persevering

To start a business, you need to take risks; be prepared to measure and overcome the various difficulties that will come your way. It may seem obvious to you now, but always believe in your idea and project. Despite the obstacles, do not give up and continue to make sacrifices and move forward.

2 – Surround yourself with the right people

Your loved ones and friends will inevitably be indispensable. However, their encouragement might not always be enough. Choose your professional entourage strategically. Continue to expand your network and find business partners whose skills complement yours. Participate in business groups and meetings. Surround yourself with trustworthy people who support your dedication, have gone through the same experiences, or are simply sincerely interested in your project. Also, know how to listen to and accept constructive criticism, it’s not always easy, but will do well for your business.

3 – Set specific goals

To put the odds on your side and to know your potential for success, it is essential to correctly establish a business plan that outlines objectives, the means to achieve them, as well as a precise timeline. As part of this business plan, don’t forget to conduct a market research, which is an essential step in evaluating the viability of your project. You will also need to define your marketing strategies and make your financial forecasts. Of course, you can always adjust the information in your plan as your business progresses.

4 – Find sources of funding and help

Once you have projected expenses in your business plan, seek sources of financing to achieve your project. Whatever your profile or situation, there are many organizations that can finance your project, including associations, which sometimes offer special programs by age group. You can also use crowdfunding platforms or enter contests to win financial awards.

In addition to financial assistance, consider asking people or organizations for help to develop your business strategy, marketing tactics, etc. These may include mentors, chambers of commerce and incubators.

5 – Work in small teams

From personal experience, it’s easier to share your ideas in a small group than a big one. This is one reason for Gore’s success. Indeed, the company explains that there are several advantages to working in a team of six people or less, including faster ownership of the project. You can then enjoy greater productivity by delegating multiple projects at the same time (for more productivity tips check out this article).

Of course, there are many other tips to follow in order to succeed. These include thinking carefully about the status you want for your business (France or Quebec), knowing how to separate your professional and personal life, joining workshops, and learning to manage your time and workspace.

Kiwili can also help facilitate your daily business management! If you’re new here,these video tutorials can help you.

About the author: Christine Hébert is a writer and editor. Curious by nature, she is interested in many subjects, including entrepreneurship. Her goal is to make life easier for readers by offering easy-to-apply tips. Find Christine on her Facebook page, Twitter account and LinkedIn.

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Kiwili is an all-in-one business management software. It is at the same time an easy invoicing software, an accounting software, a CRM, a convenient project management tool and a time tracking software. Everything you need to manage your business like a pro!

Free Chart of Accounts, 5 Models to Discover

Free Chart of Accounts, 5 Models to Discover

Let’s face it, accounting isn’t always the most exciting thing! We’re entrepreneurs, artists, professionals, consultants, but not accountants. However, when it is time to talk to our banker, tax auditors or investors, we’re often consumed by terrible anxiety. We inevitably ask ourselves: “Why didn’t I take the time to organize my business and finances?”

As you probably know, Kiwili offers an all-in-one expense and revenue management tool. Managing your accounting is immediately made simpler and more enjoyable! This feature involves a somewhat technical term often commented upon on our forum – the chart of accounts.

What is a chart of accounts?

A chart of accounts is an index of the financial accounts that a business uses in its accounting system. It includes both balance sheet accounts and income statement accounts, and shows assets, liabilities, equity, revenues and expenses in one place and broken down into subcategories as follows:

  • Balance sheet accounts
  • Assets
  • Liabilities
    Owner’s (Stockholders’) Equity
  • Income statement accounts
  • Operating Revenues
  • Operating Expenses
  • Non-operating Revenues and Gains
  • Non-operating Expenses and Losses

The chart of accounts is an organized collection of financial information and the basic tool needed for the preparation of a company’s financial statements.

What is the purpose of a chart of accounts?

In order to have an adequate management accounting system, it is imperative to have an appropriate and flexible chart of accounts, structured to provide the manager with the necessary information for decision-making. When the company wants to highlight important strategic costs, such as R&D or training, it can structure its chart of accounts to identify or group these costs. Similarly, when a business has multiple activities or products, the proposed model can be organized to provide the executive with an analytical report on the profitability of products and services.
Chart of accounts samples

Here are some charts of accounts samples to help you:

We invite you to read 5 Tips for Starting a Business Successfully

Don’t hesitate to consult the blog of Kiwili to find a lot of articles concerning the entrepreneurs and the autonomous workers !

Logo Kiwili

Kiwili is an all-in-one business management software. It is at the same time an easy invoicing software, an accounting software, a CRM, a convenient project management tool and a time tracking software. Everything you need to manage your business like a pro!

8 Best Practices in Project Management

8 Best Practices in Project Management

Completing projects within budget and on time can sometimes be stressful. Without proper planning and management, projects can go wrong, resulting in wasted time and money. To avoid this, follow our 8 tips to move along your projects smoothly.

1- Plan, plan, plan!

The more you plan, the higher your chances for success! Start by establishing a list of all the project phases and required tasks. Be sure to carefully divide each major phase into a multitude of small steps. This is a great way to remember everything, to avoid backtracking and to motivate your work team, which will see the steady progress of its efforts on a daily basis.

Next, organize the order of the phases and tasks, and save all this information in Kiwili’s project management tool.

Best Practices in Project Management

One of the difficulties of project management sometimes lies in an inability to properly estimate the workload of a particular task. Don’t hesitate to ask a colleague for their opinion.

Remember that some activities can be done at the same time, and that others need one to be completed before they can begin. As the project manager, one of your roles is to limit the number of unexpected events. To do this, careful planning is required. Leave nothing to chance!

 

2- Estimate higher costs

Is the project still profitable if the worst case scenario arises? Initially, it is better to add some flexibility to the established financial planning. In addition to direct costs, you must consider the indirect costs (administrative support, cost of office supplies) that could affect the profitability of the project.

 

3- Store your data in a safe software

In order to be efficient with your project management, collect all the relevant information and files that will be needed during the project. Since your data is the heart of your business, you need to make sure you store it in a secure place. You can count on Kiwili for that.

Best Practices in Project Management

4- Do not deviate from the critical path

Make sure you stay on track throughout the project, and especially during key phases. If necessary, readjust and plan for additional financial, material and human resources.

5- Support your team members

As project manager, you need to provide leadership, direction, and above all, support to team members as they go about completing their tasks. Listen to them when they need you. Do not hesitate to use their creativity. A miracle solution sometimes emerges from a brainstorming session.

Best Practices in Project Management

6- Communicate effectively and continuously

Your work team must be aware of the plan. Keep them informed not only of the progress of the project, but also of the potential difficulties ahead. A well-organized meeting with coffee, fresh fruits, and perhaps a little chocolate may be worthwhile. A cohesive team is essential to achieving the desired victory.

7- Follow-up rigorously

Adapt your schedule by revising it on a daily basis as work progresses. Check regularly if your progress matches the plan and modify it as needed. What’s going well and what could be improved? What could you do to turn the tables around?

 

About the author : Dominique Lamy has been a freelance journalist since 2008. He has forever been passionate about personal finances and stock markets. He is a regular contributor to Les Affaires newspaper, Les Affaires Plus magazine and avenues.ca

For more articles about entrepreneurship, you can check out our blog Kiwili. If you want some tips on how to use Kiwili, you can check out our video tutorials. 

Find Dominique on his LinkedIn.

Logo Kiwili

Kiwili is an all-in-one business management software. It is at the same time an easy invoicing software, an accounting software, a CRM, a convenient project management tool and a time tracking software. Everything you need to manage your business like a pro!