Last Updated April 27, 2021
You may have planned a lot of things to do before the Christmas fever hits you. Undeniably Christmas is the busiest time of the year for a product-based business. However, for a service business, it’s the opposite case. Imagine, running a small business accounting software for retails and tourism businesses. But you also need to prepare for the slow season. Since businesses are closed during the holidays, you need to ensure that your business will have a merry session you need to manage the financial hangover before it turns nasty.
But how to do so?
You need to learn the ways the accounting software can help you to stop from being bankrupt for your further understanding.
How the Best Accounting Software for Service-Based Business Helps you?
1. Learn about the Cash Flow
How can you possibly plan anything without having a ledger maintaining the debit and credit entries? To plan things a certain way, buying or expenditures, you need to have an idea about what’s coming in and out.
When you use the My CPA Dashboard, management software, your accounting paperwork is all recorded online. It is specifically designed to relieve you from the stress of outsourcing an accounting firm and tangling with the accountants. Instead, you can manage your accounting goals with MY CPA Dashboard’s web portal rather easily.
2. Proactive Invoicing
Once a job is completed, issue the invoice right away instead of delaying it for later. This is how you can manage the billing and other expenditures. The payment process will make things much clearer, the amount used and the cash left behind.
My CPA Dashboard is more than just a small business accounting software. It will notify you with monthly bank statement emails that let you sign up more clients rather than spending time on fetching, filing, or finding the accounting documents. It’s better to email the invoice than sending snail mail if you want your client to receive the email on time.
3. Align the Late Payments
It’s easy to get lost in the workings of the cash flow. Consider contacting the client a few days prior to the expected date. This way you can guarantee that whether the invoice email has been received by the client or not so that payment can be processed.
If you feel you are too wrapped up in the projects and other tasks, using my CPA Dashboard will save you the trouble of outsourcing a new accountant. Besides, as an accountant using the small business accounting software, you will be able to manage the creditors as well.
No delayed payment charges or damage to business relationships will occur. You can effectively come up with the payment plan, by looking at the logged-in entries, by communicating with your creditors as well.
4. Term Changes
What if you want to take a percentage of the quote (for the down payment) for your upcoming project? This is a crucial point especially if you want to continue both projects, the ongoing and the new ones. This means you have reached the point where you need to revise your payment terms for instance instead of 30 days you could opt for 15 days and so on. With the help of the small accounting software, you can keep a close eye on the down payments as well.
You can use the invoice to mention the amounts for the direct bank transfers. The generated invoices will be the required information you need to make the process payment. This way you can also encourage on-time payments.
5. Tax Deduction on Expenses
At the end of the year, you need to show more than a little modicum of appreciation for your employees too. At the time of Christmas, every person’s plan relies on the bonus or the extra commissions that might be eligible for.
When you use a business accounting software like My CPA Dashboard, you already have the required information to make the cash adjustments. You can let your employees benefit from the software as well on a personal level. Especially at the time of Christmas the certain fringe benefits and income taxes occur for the staff and clients.
Now, this rule may vary from country to country, however, in the US, you need to check in with the account. In case you are the accountant yourself, you can make claims for the gifts to clients or staff, cash bonuses, and so on.
6. Organised like a Santa
Accountants are the disguised Santa who gets to handle the cash inflows and outflows, the tax deductions, bonuses as so on. This is possible if you, as an accountant, as a pro in using the MY CPA Dashboard portal to manage the finances of the clients. You can keep the amount aside for the compulsory expenses at the end of the year. This is made possible once your workflow is synced with the My CPA Dashboard. You can easily connect your client’s bank account information to securely make transactions directly. Moreover, the transaction history will remain available.
A little planning prior to the time of Christmas can go a long way for any service business provider. You can hit financial success if you are consistent in using the My CPA Dashboard portal to maintain the accounts and finances. It’s best to overcome financial problems by using an effective small business accounting software.