Intro > Methodology (abridged)
Our Methodology includes multiple concepts which many experienced Small Business folks might in fact label as Best Practices. KISS (Keep It Simple Stupid) applies to your Small Business Accounting in ways that is going to make many gasp and a few cringe in disbelief. If you read into our Docs, you will find some introductory info that frames this better and you will also find a far more detailed document which includes this info and much more. This is a very abridged version of the Methodology just to give you and idea of what it looks and feels like.
Consolidate Your Bank Accounts
In an ideal world your Business Checking, your Business Credit Cards, your personal Checking and any lines of credit should all be with a single Bank and view-able in a single online banking console. The sensory benefits of this as it pertains to regular cash-flow management can not be matched. If you operate a business which cashflows well and one in which you are seldom having to make deposits from personal accounts as loans to float, having your personal accounts and lines of credit elsewhere is less important.
In an ideal world your Business Checking, your Business Credit Cards, your personal Checking and any lines of credit should all be with a single Bank and view-able in a single online banking console. The sensory benefits of this as it pertains to regular cash-flow management can not be matched. If you operate a business which cashflows well and one in which you are seldom having to make deposits from personal accounts as loans to float, having your personal accounts and lines of credit elsewhere is less important.
Use a CPA for your Tax Preparation
Even if you can find your way around a tax form, there are few things more valuable than having a CPA between you and the IRS. If he/she knows of even one deduction you don't, their services often pay for themselves. If anything needs to be added or corrected after submission, that is their wheel house and one that individuals can only flounder in due to lack of experience. Everything related to our methodology and our digital solution is to assist you with building a packet that makes your information delivery to a CPA easy. In theory, you should become a favorite customer for your CPA and hopefully you might see some reduced tax preparation costs from him/her for your educated approach to Small Business Accounting.
Even if you can find your way around a tax form, there are few things more valuable than having a CPA between you and the IRS. If he/she knows of even one deduction you don't, their services often pay for themselves. If anything needs to be added or corrected after submission, that is their wheel house and one that individuals can only flounder in due to lack of experience. Everything related to our methodology and our digital solution is to assist you with building a packet that makes your information delivery to a CPA easy. In theory, you should become a favorite customer for your CPA and hopefully you might see some reduced tax preparation costs from him/her for your educated approach to Small Business Accounting.
Tax Accounting First
Everyone has been encouraged to do their Cost Accounting first with a cross over to Tax Accounting as an after thought, and that concept is the exact OPPOSITE of what most Small Business people should in fact be doing. Do your Tax Accounting first, since it is in fact the only accounting that is required of a Small Business, and then if there is something you aren't getting enough clarity on, do whatever you want to gain the clarity that is lacking for yourself.
Everyone has been encouraged to do their Cost Accounting first with a cross over to Tax Accounting as an after thought, and that concept is the exact OPPOSITE of what most Small Business people should in fact be doing. Do your Tax Accounting first, since it is in fact the only accounting that is required of a Small Business, and then if there is something you aren't getting enough clarity on, do whatever you want to gain the clarity that is lacking for yourself.
Keep your Accounting System DISCONNECTED from your day to day Digtial Systems
Many have been errantly lead to believe their Accounting System should be tied to their Invoicing System, their Point of Sale System, their Inventory System, their Payroll System or some other system, and those false beliefs create a technology gridlock for most small businesses, and the only folks who truly benefit are the software vendors who have then locked you in as a customer. Aggregate information and data in your day to day systems and transfer aggregated amounts into your accounting system in an audit-able manner. It is just that simple.
Many have been errantly lead to believe their Accounting System should be tied to their Invoicing System, their Point of Sale System, their Inventory System, their Payroll System or some other system, and those false beliefs create a technology gridlock for most small businesses, and the only folks who truly benefit are the software vendors who have then locked you in as a customer. Aggregate information and data in your day to day systems and transfer aggregated amounts into your accounting system in an audit-able manner. It is just that simple.
No need for Auto-Connection to your Bank...
The "convenience" of connecting your Accounting System to your bank accounts is generally an illusion. Once it's up and running "it's cool", but getting it up and running and keeping it that way can be very time consuming. When account numbers change due to re-issueing of cards or hacking, that can get complicated. Corporate credit cards in general are challenging. You're not going to truly appreciate our manual entry system or our download and cut and paste system until you see it in action or try it out. Just remain open to the idea that most CPAs do not advise their customers to use the auto downloading systems, so there must be something to this.
The "convenience" of connecting your Accounting System to your bank accounts is generally an illusion. Once it's up and running "it's cool", but getting it up and running and keeping it that way can be very time consuming. When account numbers change due to re-issueing of cards or hacking, that can get complicated. Corporate credit cards in general are challenging. You're not going to truly appreciate our manual entry system or our download and cut and paste system until you see it in action or try it out. Just remain open to the idea that most CPAs do not advise their customers to use the auto downloading systems, so there must be something to this.
Cash Flow is King
Most confuse their accounting process for a cash flow management system. A business lives and dies on cashflow and learning how to manage that outside of a traditional accounting system is critical to understanding why we say you can do your accounting quarterly or annually with tons of benefits and few, if any draw backs.
Most confuse their accounting process for a cash flow management system. A business lives and dies on cashflow and learning how to manage that outside of a traditional accounting system is critical to understanding why we say you can do your accounting quarterly or annually with tons of benefits and few, if any draw backs.
Software that is Cognitively Easy on the mind is the only way to go (and if you can't find it... build it yourself...)
Here's the dirty secret about Software that most don't know... People think "it" is going to just "do things for them" when in fact you have to know what "its creator" was thinking when he/she designed "it" in order to have proper expectations for what "it" can and can't do for them. When people try to learn how to use software like Quickbooks, they errantly assume the difficulty is due to their lack of understanding of Accounting and Software, when in fact much of it is just bad programming, bad user interfaces and bad vocabulary choices by the designers and developers. And the amazing part is that all of that poor work leads to huge training revenues for training partners... and it leaves otherwise powerful people feeling less than powerful for all the wrong reasons.
Here's the dirty secret about Software that most don't know... People think "it" is going to just "do things for them" when in fact you have to know what "its creator" was thinking when he/she designed "it" in order to have proper expectations for what "it" can and can't do for them. When people try to learn how to use software like Quickbooks, they errantly assume the difficulty is due to their lack of understanding of Accounting and Software, when in fact much of it is just bad programming, bad user interfaces and bad vocabulary choices by the designers and developers. And the amazing part is that all of that poor work leads to huge training revenues for training partners... and it leaves otherwise powerful people feeling less than powerful for all the wrong reasons.
Many Grains of Sand
Your accounting related stress is in fact comprised of many, many grains of sand. No matter what we tell you, you won't realize how full your shows are with sand until you start making some adjustments and you come to realize your feet don't hurt. There is more to our overall Methodology than what has been introduced here, but this should give you the gist of where we are going...
Take the time to READ all the info in this website. Get a cognitive picture of what's going on and then it will all make a lot more sense, you'll be able to separate that which you "get", and that which you need to seek help with, with the later being a much smaller amount of info than most might think.
While we feel our companion book is a great adder for all of this, it is not required to get your arms around ZAP Software and your own Small Business Accounting.
Your accounting related stress is in fact comprised of many, many grains of sand. No matter what we tell you, you won't realize how full your shows are with sand until you start making some adjustments and you come to realize your feet don't hurt. There is more to our overall Methodology than what has been introduced here, but this should give you the gist of where we are going...
Take the time to READ all the info in this website. Get a cognitive picture of what's going on and then it will all make a lot more sense, you'll be able to separate that which you "get", and that which you need to seek help with, with the later being a much smaller amount of info than most might think.
While we feel our companion book is a great adder for all of this, it is not required to get your arms around ZAP Software and your own Small Business Accounting.