How Bookkeeping Saves Time & Money for Your Business

How Professional Bookkeeping Can Save Your Construction Business Time and Money?

The environment in which enterprises in the USA operate is distinct; they must balance financial management, compliance, and regulations. It is impossible to overstate the importance of effective bookkeeping to businesses as they strive to survive in a competitive industry. In addition to helping, you stay compliant, accurate records offer insightful information about the state of your company.

Imagine devoting more of your time to developing expansion plans or cultivating customer relationships rather than doing financial paperwork. This is the point at which expert bookkeeping services become a crucial business auxiliary. Let’s examine how this can enhance your overall operating efficiency and help you save valuable time and money.

Importance of Construction Bookkeeping for Businesses

An essential component for enterprises is construction bookkeeping. In addition to assisting in preserving tax conformity, it establishes the framework for financial clarity.

Precise documentation not only streamlines your bookkeeping procedures but also guarantees stress-free deadline compliance. When bookkeeping is given top priority, tracking payments becomes easy.

Keeping financial statements organized can help avoid costly errors, as numerous transactions occur daily. Over time, substantial losses may result from neglected invoices or improperly handled receipts.

Furthermore, proficient bookkeeping provides valuable insights into managing cash flow. Knowing revenue and costs enables business leaders to make well-informed decisions that encourage expansion.

Additionally, a strong bookkeeping system promotes trust among clients and stakeholders. Transparency in finances enhances trust in a field where reputation is crucial.

Benefits of Professional Bookkeeping Services

Businesses will significantly benefit from professional bookkeeping services, and accuracy is one distinctive advantage. To minimize the risk of costly errors, knowledgeable bookkeepers ensure that every transaction is accurately documented.

Compliance is also a key advantage. Regulations are constantly changing, making it challenging to stay current. Expert bookkeepers maintain accurate and legally compliant financial records.

Additionally important is time efficiency. By hiring a bookkeeping service, you can avoid getting bogged down in paperwork and instead focus on your core business operations, such as client relations and project development.

Time-Saving Strategies for Businesses

Time management is crucial for organizations, as they frequently juggle numerous duties. Automating standard accounting procedures is one such tactic. You can free up valuable hours by using software that manages spending, tracking, and invoicing.

Implementing cloud-based solutions also enhances accessibility. Team members have access to financial data at any time and from anywhere. This adaptability facilitates faster and more efficient decision-making.

Maintaining consistency is facilitated by regularly setting up time for bookkeeping. Set aside specific hours each week to analyze your finances rather than letting paperwork accumulate.

By contracting out expert bookkeeping services, internal resources are not as stressed. This ensures accuracy and frees your staff from tedious data management, allowing them to focus on key business tasks.

Cost-Effective Solutions for Construction Businesses

For businesses seeking to boost profitability, cost-effective solutions are crucial. Overhead expenses can be greatly decreased by hiring a professional bookkeeper. Businesses can save money by not employing a full-time accountant and outsourcing these services.

Experienced bookkeepers often use advanced software to streamline financial processes. Businesses can focus on their core competencies as a result of this technology’s time- and error-saving benefits.

Obtaining expert counsel without incurring the high fees typically associated with consulting firms is another benefit. Experts in bookkeeping maintain current knowledge of industry standards and tax laws, helping companies stay compliant and avoid costly fines.

They can also pinpoint areas where expenses might be reduced and productivity raised. Better cash flow management and financial decision-making are the results of such insights. Adopting these tactics enables businesses to maintain low costs while thriving in a cutthroat market.

Tips for Choosing the Right Bookkeeping Service Provider

Any business must select the best bookkeeping service provider. For that, you must first evaluate their background in your particular field of expertise. An experienced practitioner will understand the unique challenges you face.

Please take a look at their tech stack next. A proficient bookkeeping service should utilize modern software that seamlessly integrates with your existing systems. As a result, precise data management and convenient access to financial data are guaranteed.

Remember to read through client endorsements and evaluations. Real-world experiences can provide valuable insights into their dependability and expertise.

As communication is essential to this collaboration, make sure they are reachable and responsive. A staff that knows what you need and values clear communication is what you require. If you are looking for such services, you can reach out to our construction accountants; they are well-experienced in managing bookkeeping.

Discuss prices upfront to avoid unpleasant surprises. A reliable supplier who appreciates integrity in their services would have transparent pricing structures.

As communication is essential to this collaboration, make sure they are reachable and responsive. A staff that knows what you need and values clear communication is what you require.

Conclusion:

For businesses, having a professional bookkeeper is a considerable advantage. It enables business owners to concentrate on expansion and core activities by simplifying financial procedures. You can be sure that your books are correct and up to date when you have knowledgeable bookkeepers handling your accounts.

Beyond accuracy, there are other advantages to hiring a professional bookkeeper. Making informed decisions about investments and spending can be aided by the strategic insights it provides. Additionally, by outsourcing these tasks, you can free up more time to focus on building your clientele or expanding your service portfolio.

It’s crucial to select the best bookkeeping service. Seek experts who are aware of the particular difficulties that businesses encounter and who have a track record of providing customized solutions.

Speaking about the best bookkeeping service, you must explore the services offered by E2E Accounting. In recent years, E2E Accounting has been gaining trust among businesses for providing trustworthy and professional accounting services, bringing qualitative changes for them. To learn more about our services or to discuss your problems, please fill out our website’s contact form, and our executive will get in touch with you.

Looking forward to meeting you soon.

how to understand financial reporting

How to Understand Financial Reporting

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One of the most essential skills any business owner, be it an investor, entrepreneur, or even manager, must possess is reading the company’s financial reporting. This knowledge not only helps investors benefit from promising business opportunities but also avoid any undue risks. For professionals, entrepreneurs, or managers, analysis of financial reports helps them make strategic business decisions for the growth and success of the business.

Reading, understanding and analyzing financial reporting is a piece of cake for any accountant or financial professional; however, for those new to the financial world, these documents and terms are no less than jargon!

But the great news here is that with some basic knowledge and understanding, anyone can learn how to read, understand, and analyze these financial reports like a pro! This blog will help you gain this understanding.

Understanding Financial Reports

Financial Reports or financial statements are the primary tools that help ascertain the company’s financial health by providing an overview of the business’s assets, liabilities, expenses, revenue and equities.

The foundation of financial reporting is based on financial statements like balance sheets, income statements (also known as profit & loss statements), cash flow statements and statements of change in equity. These statements are the key to any financial reporting as they provide a snapshot of the health and performance of the company.

Balance Sheet

A balance sheet summarizes an organization’s assets, liabilities, and equity at a point in time. It provides insight into the overall financial position of the company’s assets (owned by the company) versus its liabilities (owed by the company) & owner’s equity (owner’s contribution or the amount invested by the shareholders). Equity represents the residual interest in assets after deducting all liabilities. The balance sheet standalone will not provide you with the entire information; it is necessary to examine the other financial reports to comprehend the company’s financial health.

Profit & Loss

The income statement, or the profit & loss statement, summarizes the details of the gains, losses, expenses, and revenues of the activities performed by the business during a specific period. It helps to determine whether your business is profitable or not. By monitoring trends over time via comparative reports, you can see if your company has grown its net income consistently throughout different periods.

Cash flow statement

The cash flow statement provides us with a picture of the inflow and outflow of the cash within the business during a particular period. This statement is crucial for monitoring liquidity to prevent you from running out of money when needed! The three key sections of the cash flow statements are (1) cash flow from investments, (2) cash flow from financial activities and (3) cash flow from operating activities.

Statement of Changes In Equity

Statement Of Changes In Equity helps track any changes made to shareholder’s equity over the period due to various transactions such as dividends paid out or new shares issued.

How to read financial reports

Every financial report will provide you with a different insight into the company’s financial state. Understanding these financial reports can help you make better decisions about investments or opportunities for growth.

The first step of reading a financial report is identifying the different types of financial statements, like Balance Sheet, Income Statement, and Cash Flow Statement. These statements provide specific information about the company’s assets, liabilities, income, and expenses.

But while reviewing all these statements, it is essential to look at trends over time rather than just one isolated snapshot. So, comparing current results with the previous year’s or quarter’s results is a must. It will show you whether the company has been growing or plunging.       

Yet another critical aspect while reading a financial report is to analyze the ratios derived from the data presented. Financial ratios will provide insight into the company’s liquidity, profitability, and operational efficiency. It will also offer valuable information about how well a business performs financially.

By efficiently dissecting every element in the financial reports, you will gain adequate knowledge of which areas you must focus on while looking at your company’s finances.

If you are still stuck in understanding and reading your company’s financial reports, E2E Accounting can help you interpret complex accounting concepts presented in financial reports efficiently.

Conclusion

Understanding and reviewing these financial reports might seem challenging. Yet learning to read and interpret these financial reports with adequate knowledge and tools will help you gain valuable insights into any company’s financial health.

You can gain valuable insight into a company’s finances by familiarizing yourself with different financial statements, like balance sheets, profit & loss accounts, and understanding:

  • Whether the company is in debt or able to clear all its liabilities. 
  • What are the current profits for the company?
  • Whether the profits are increasing or decreasing.
  • What are the levels of investments within the company?
  • Is the company’s operational expenses within control as compared to its revenue?

The financial ratios can also help you analyze a company’s profitability, liquidity, and overall health, and by reading cash flow statements, you’ll be able to see where money is coming in and going out of a business.

If you want to gain in-depth knowledge on making financial decisions and understanding the company’s financial health, E2E Accounting supports small businesses across the U.S., providing expert financial reporting services. By outsourcing your accounting needs to E2E Accounting, you can be assured that all your financial reporting is accurate while freeing up time for other essential tasks!

why having a bookkeeper is important in the current environment

Why Having A Bookkeeper Is Important In The Current Environment

Bookkeeping is an essential aspect of business. Accounting records are needed for calculating a company’s obligations and its receivables, to look at its history and plan for the future. A bookkeeper’s role is to help you organize and manage your books and maintain proper and accurate financial records.

In the current economic climate, resulting in no small measure from the series of lockdowns in the USA, a bookkeeper is more important than ever, to help your business navigate the myriad rules and changes, manage compliance, assets, liabilities, and taxes without errors or miscalculation. The bookkeeper’s role is thus vital to the overall functioning of any business.

We discuss here some crucial issues for you to consider as you make this decision.

1. Focus on your Core Business

Bookkeepers ensure that financial records are correct and up-to-date. This allows you to focus on your business’s core activities. A bookkeeper can help you grow your business faster by providing reports that analyze business and growth trends, especially in today’s COVID19 affected economy. Cash and accounts forecasts made by your bookkeeper, studied with market movements, help you plan for the future.

2. Profitability Analysis

Bookkeepers track your income and expenditure and inform you about where you should or can cut costs and where you must increase your revenue to ensure you have sufficient funds available for your business. Complete access to the financial records of your business allows the bookkeeper to monitor profits or losses at all stages. As the economy recovers slowly, after several waves of coronavirus, the regular updates you receive from your bookkeeper about your assets and liabilities enable smart changes in real-time. Hiring a bookkeeper brings you a great return on your investment

3. Finance management

The company’s efficiency depends highly on the precision of bookkeeping. Business owners may fail to observe how they’re spending their money, but a bookkeeper’s job is to point out where it is going and whether or not it will generate profit. An efficient bookkeeping service provides correct and accurate data in real-time helping SMEs to grow and flourish. A third-party service provider can help you manage your finances better and eliminate unnecessary expenses.

4. Manage compliances

Your bookkeeper ensures that the business’s financial records are kept in order, accurate and updated as per the government’s rules and regulations. They alert you to changes in the regulations and update the records accordingly. They ensure that all tax compliances are timely, filing returns and reminding you to pay the liabilities.

5. Grants and schemes

SMEs have constantly been on the lookout over the past year for financial support in a halting economy. Various grants, loans and Government schemes are keeping many businesses afloat. Your bookkeeper would have helped you with the eligibility criteria, the documentation and the numbers to apply for the relevant grants, loans and/or schemes. They would have, and continue to, help you manage monthly compliance and eventual repayment where necessary. They calculate future cash flows to suggest the loan repayment best suited to your business.

Conclusion

Running a business in USA means you will have to be extremely competitive and bookkeepers will help you in maintaining and increasing your efficiency. Also, getting experienced bookkeepers is not an easy job but if you get hold of professional service partner than you will get access to experienced bookkeepers streamlining your bookkeeping process.

For experienced bookkeepers, you must connect with E2E Accounting which has built a team of bookkeepers serving multiple businesses in USA. For more information on our bookkeeping services or to send questions write it down on our contact form and our executive will get in touch with you.

8 common bookkeeping mistakes made by startups

10 Common Bookkeeping Mistakes Made by US Startups (And How to Avoid Them)

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Worried You Blew Your Bookkeeping? Don’t Panic, You’re Not Alone

Almost every startup founder makes mistakes with their bookkeeping at some point. The good news is most mistakes are totally fixable, especially if you catch them early enough. The key is knowing what mistakes to watch out for and how to avoid them

Startup life is hectic, and bookkeeping often takes a back seat. Below, we walk you through the most frequent bookkeeping mistakes we see US startups make. We’ll also share our best advice on how to sidestep these pitfalls so you can focus on growing your business without letting your finances spiral out of control

1. Flying Blind: Guessing Your Way Through Bookkeeping

Many entrepreneurs start keeping books without a clear system or understanding of basic bookkeeping principles. They guess their way through categorizing expenses, tracking income, or claiming tax deductions. While it might feel okay at first, guesswork quickly compounds and can leave you with a year’s worth of messy books to fix by tax time.

Why it’s a problem

  • Incorrect expense categorization can reduce your legitimate deductions, costing you more in taxes.
  • Overlooking important deadlines or income streams can throw off your cash flow and tax planning.
  • This approach makes your financial statements unreliable for decision-making.

How to avoid it

  • Use bookkeeping software tailored to small businesses in the US, like QuickBooks Online or Xero.
  • Take time to learn basic bookkeeping fundamentals, either through online courses or reputable blogs. For example, the IRS website offers small business tax guides to get you started.
  • When in doubt, you should hire a qualified bookkeeper familiar with your industry and US tax rules that can help you prevent guesswork from turning into costly mistakes

2. Spending Hours Fighting Clunky or Inappropriate Systems

If your bookkeeping setup isn’t compatible for your business, you’ll spend way more time than necessary keeping your books in order. Some startups try to keep everything on multiple Excel spreadsheets or outdated software, leading to data errors and headaches.

Why it’s a problem:

  • Managing many disconnected files increases the chance of data entry mistakes.
  • Time wasted on manual updates or troubleshooting eats into your productivity.

How to avoid it:

  • Customize your chart of accounts from the beginning to fit your specific business model. This helps classify transactions properly and streamlines reporting.
  • Automate recurring transactions like rent or subscription fees whenever possible.
  • Consider cloud-based accounting software integrated with your bank and payment processors for real-time updates.
  • Don’t hesitate to get help setting up your system, a good bookkeeper or accountant can get you running on the right foot.

3. Failed Compliances

Life gets busy, and bookkeeping is often the last thing on a startup founder’s mind. But procrastinating turns small to-dos into mammoth tasks.

Why’s this bad? Waiting too long means receipts get lost or forgotten, bank reconciliations turn into nightmares, and you miss numerous deductible expenses. Fixing all at once can be overwhelming, or expensive if you hire someone last minute.

How to fix it:

  • Create a habit: spend 30 minutes weekly or monthly updating your books.
  • Use receipt scanning apps (like Expensify or Shoeboxed) to snap and save expense proof on the go.
  • Block calendar reminders and treat bookkeeping like an important appointment — your business depends on it!
  • If overwhelmed, consider hiring a virtual bookkeeper to take the pressure off

4. Mixing Personal and Business Finances (It’s a Minefield)

Using your personal debit or credit card to pay for business expenses or using your business card for personal purchase might feel convenient but creates serious bookkeeping headaches. Not to mention, it can muddy your legal protections as a startup owner.

Why’s this bad?

Mixing accounts creates confusing records, makes it hard to prove business expenses during audits, and may jeopardize your business’s legal protections. The IRS expects clear boundaries between personal and business money

How to fix it:

  • Open a dedicated business checking account and credit card. Conduct all business spending from these accounts only.
  • If you accidentally use personal funds for business expenses, reimburse your business quickly and document it as an owner contribution or loan.
  • Use stickers or labels to distinguish cards, or keep personal cards separate and out of reach during work hours.

5. Ignoring Your Financial Statements

Many startup owners neglect to regularly review their financial statements, like the profit and loss, balance sheet, and cash flow statement, because they find them confusing or intimidating. But these reports are invaluable tools for assessing the health and trends in your business.

Why it’s a problem:

  • You can’t spot cash flow issues or overspending if you don’t compare revenues vs. expenses regularly.
  • You miss opportunities to adjust budgets, increase profitability, or maximize tax deductions.
  • Investors, lenders, or partners won’t be impressed if you’re clueless about your finances.

How to avoid it:

  • Set aside time monthly to review your financial reports.
  • Learn the basics of reading financial statements via free online courses or IRS resources.
  • Work with a CPA or financial advisor who can interpret your data and provide strategic guidance.
  • Use dashboards or apps that simplify financial metrics to digestible summaries.

6. Tossing Receipts (or Losing Them) Instead of Keeping Digital Records

Receipts are the lifeblood of your bookkeeping, particularly when substantiating expenses to the IRS. Throwing them away or losing them can land you in hot water with fines or reduced deductions.

Why it’s a problem:

  • Without proof of expenses, deductions on your tax return might get disallowed.
  • You risk penalties during audits if you can’t produce required documentation.

How to avoid it:

  • Digitize receipts immediately, use phone apps like Expensify, Shoeboxed, or even your smartphone camera plus cloud storage (Google Drive, Dropbox).
  • Organize receipts by month or category for easy retrieval.
  • Retain all records for at least seven years, as recommended by the IRS.
  • Keep detailed notes on expenses that require extra info (e.g., the business purpose of client meals).

7. Hiring the Cheapest Bookkeeper You Can Find

You get what you pay for. An inexperienced or underqualified bookkeeper may save money upfront but create headaches down the line with missed deductions, incorrect entries, or compliance issues.

Why it’s a problem:

  • Mistakes and overlooked errors often go unnoticed until tax time or audits.
  • Poor bookkeeping can delay financial reporting and strategic decisions.

How to avoid it:

  • Hire a bookkeeper with verifiable experience in your industry and knowledge of US startup bookkeeping requirements.
  • Look for certifications (e.g., Certified Bookkeeper from AIPB) or positive client testimonials.
  • Ask about the software they use and ensure it integrates well with your tax preparation.

8. Skipping Out on Hiring a CPA for Tax Strategy and Complex Issues

Bookkeepers handle everyday transaction tracking but CPAs offer tax planning, representation during IRS audits, and advice on business growth.

Why it’s a problem:

  • Without professional tax advice, you might miss crucial deductions or make mistakes triggering audits or penalties.
  • CPAs can assist with year-end tax moves, payroll tax filings, business entity structuring, and more.

How to avoid it:

  • Budget to hire a CPA to review your books periodically, especially for year-end tax filing and financial planning.
  • Use their advice to optimize your tax situation based on current US laws and your startup’s particulars.

9. Misclassifying Owner Payments as Expenses

Sole proprietors and single-member LLCs often mistakenly record owner draws or payments to themselves as regular business expenses. This under-reports taxable income and distorts financial statements.

Why it’s a problem:

  • It lowers your taxable profit incorrectly, risking IRS questions or penalties.
  • Financial reports won’t accurately reflect business performance to investors or lenders.

How to avoid it:

  • Record any payments to yourself as “Owner’s Draw” or equity withdrawals, not as expenses.
  • Work with your accountant to set up proper charts of accounts for equity transactions.
  • Track owner contributions and draws carefully in bookkeeping software.

10. Forgetting or Neglecting Sales Tax Responsibilities

Sales tax can be confusing, and many startups don’t fully understand when or how much sales tax to collect and remit. Yet tax agencies are strict about compliance and errors can lead to heavy fines.

Why it’s a problem:

  • Collecting incorrect sales tax rates can overcharge or undercharge customers.
  • Failing to remit collected sales taxes on time results in penalties and interest.
  • States sometimes audit new businesses aggressively to catch revenue leaks.

How to avoid it:

  • Consult a CPA early to determine your obligations based on your state(s) and the products or services you sell.
  • Stay organized with sales tax reports, filing deadlines, and payments.
  • Use accounting software that automates sales tax calculations and filings based on current jurisdiction rates.

Take the Stress Out of Bookkeeping: Here’s How

Making mistakes is just part of growing a startup. What sets successful founders apart is recognizing bookkeeping issues early and putting systems in place to prevent them from escalating.

If the idea of crunching numbers feels overwhelming, professional bookkeeping services are a game-changer. At companies like E2E Accounting, expert bookkeepers handle everything from categorizing expenses to reconciling accounts and preparing financials designed specifically for US small businesses.

Why consider outsourcing?

  • Save time and focus on what you do best, building your product or serving customers.
  • Get peace of mind that your books are accurate and IRS-ready.
  • Enjoy financial insights and reports that help you make smarter business decisions.

Conclusion

Upholding good bookkeeping habits isn’t just about avoiding tax snacks or audit stress (although those are big reasons!). It’s about gaining clarity into your business’s health and setting yourself up for sustainable growth.

Start today by picking one mistake from this list, and fixing it. Schedule weekly bookkeeping sessions, separate your accounts, or reach out for expert help. Every little improvement paves the way for stronger finances and less stress down the road.

Your startup’s success depends on it.

Need help crafting your bookkeeping system or want us to review your finances? Feel free to reach out, we’d be happy to point you in the right direction!

top 10 accounting mistakes to avoid for small businesses

Top 10 Accounting Mistakes to Avoid for Small Businesses

Being an entrepreneur can be a beautiful and fulfilling journey, where you are your boss and watch your business grow from strength to strength. However, it also comes with its fair share of challenges. You are the CEO, the marketing manager, and the event director, all wrapped into one. There is a constant juggle of wearing many hats, including in areas where one might not necessarily have any experience whatsoever. One such area is Accounting! Let’s look at the top 10 Accounting mistakes that Small Businesses can avoid in this domain.

Doing it on your own. 

Imagine this! As a patissier, you run a business baking artisanal cake. Your value-added tasks are those for which customers are willing to pay you. To run a successful baking business, however, you will also have to undertake some support tasks, such as marketing and maintaining financial and accounting records. Although support tasks are necessary and essential, they can divert some of your focus away from your core business activities. However, with support activities, one has a choice to either work on them independently or outsource them.

Not using Cloud Applications.

Accounting can be daunting for a business owner, but the advent of cloud computing has ensured that everyone can have organized, user-friendly, and secure accounting software at their fingertips. Using cloud accounting software provides reliable data with less room for human errors. A large amount of sensitive data can be stored, which can be easily accessed by business owners, thereby giving them the power to know their business’s financial position at any given point in time.

Creation of Multiple Chart of Accounts. 

A coherent COA is the foundation of the reporting that the business will be required to perform. From a record-keeping perspective, a Chart of Accounts is the most fundamental planning requirement for a business. Creating multiple Charts of accounts can be one of the most serious accounting mistakes a small business could make, as the Chart of Accounts is the framework on which reporting, whether for bookkeeping, GAAP, or Tax, will be based.

Delay in Accounting.

Regular accounting helps you track the movement of money in and out of your business, which enables you to make informed decisions and leads to a thriving business.

Focusing on Revenue and not Cost.

Most small businesses want their revenue numbers to show a steady rise, and who doesn’t? However, in the rush to achieve significant topline numbers, many small business owners tend to overlook the importance of focusing on Cost. To put it simply, your Revenues – Cost = Profit.

So, while the topline might look good, the bottom line, which is the profitability of the business and is more valuable for a healthy, thriving business, gets ignored. How does one achieve a balance between focusing on costs and revenues? Ask yourself questions like: Is there a way to save on taxes? Is there a way to standardize the processes? Are you managing your inventory efficiently?

Not segregating personal expenses and business expenses. 

Small business owners oftentimes do not segregate their personal and business expenses, given that they might be the sole proprietors of the business. This can lead to challenges when tax time arrives. Underreporting or overreporting of business expenses results in an unclear picture of the business’s income.

Not reviewing Profit and loss accounts on a monthly basis. 

A Profit and Loss account shows the health of your business in terms of what is your income and what is your expenses. You can identify the costs that need analysis, as well as whether your Revenue is in line with your goals.

Just focusing on cash management.

Cash is undoubtedly one of the most crucial financial metrics. Hence, the goal of good management should be to eliminate surprises related to cash and ensure that there is sufficient cash for the business to meet its daily cash needs.

Additionally, while excess cash may seem beneficial in the short term, it may indicate that the business did not utilize it effectively to generate more profits, and it may also suggest that the business missed opportunities due to its short-sighted cash management.

Too much inventory.

While a business would always want to maintain an optimal level of inventory to avoid future raw material shortages, it runs the risk of being too cautious and being stuck with excess inventory, which can eventually lead to cash flow issues.

Excess inventory is also more susceptible to theft. More than optimal inventory also means there might be slow-moving stock, which is a source of working capital loss. The ideal way to manage inventory is to be proactive and on top of the requirements, which means accounting and recording of data must be up to date.

Being unaware of compliances.

Legal compliance is an integral part of any business. Businesses need to meet compliance requirements to run their operations smoothly without incurring any penalties. Knowing the compliance requirements not only helps businesses to be on the right side of the law but also brings in a lot of customer trust.

Small businesses are no exception when it comes to meeting compliance requirements. The compliance requirements can range from Legal (entity-specific compliances for businesses, depending on whether they are a Sole Proprietorship, private limited company, or Partnership) to Human resources (Labor laws) to Tax (including income tax, National Insurance, corporation tax, and sales tax).

Conclusion

Accounting mistakes can be reduced to a great extent only if you get to experience hands in managing this task. While working with multiple clients, we have noticed that businesses have profited from the experience of accountants by avoiding costly mistakes. Hiring an experienced accountant is a significant investment, but it has long-term benefits. If you cannot recruit one, you can avail of their services through an accounting outsourcing service provider.

To get hands-on with the best accountant, you will have to choose the best service provider, like E2E Accounting. It has established its reputation by providing experienced and talented accountants to many of its competitors, which has helped them reduce accounting errors and increase efficiency. For more information on our services, please write to us using our contact form, and our executives will be in touch with you.

All the best and looking forward to connecting with you soon.

why should landlords have an accountant

Why should landlords have an accountant?

There are many moving parts in running a successful rental business. A great bookkeeping and accounting system is a crucial element in managing a property portfolio. Having a robust accounting system will help you plan for tax implications in advance. Not only will an accountant be of help at tax time, but they will also provide on-demand financial help, which will safeguard your business against debt or fraud.

Forecasting future expenses will help you plan better and save time. This can help one focus on managing property and expanding the business. Historical financial data will help you forecast various costs with greater accuracy, thereby ensuring that you are not financially derailed. For instance, this data can help determine what needs to be done when maintenance costs increase in winter months or when internal or external walls require repairs.

Ensure rentals are being received on a timely basis.

Rent receivable reports, prepared by accountants, show the amount of rent the landlord has earned but not yet received from the tenant. At the same time, the prepaid rent report shows the rent that has been received in advance. These reports help to identify delinquent tenants ahead of time. When the balance of the rent receivable ledger is nil, it means the landlord has received all the rent that was due to him from the tenant.

Take advantage of available tax benefits.

Even with the flurry of activities surrounding getting the property ready for rent and choosing the right tenant, the landlord must stay on top of taxes, such as capital gains tax, stamp duty, and corporation tax, among others.

Taxation planning should be done beforehand rather than afterward, as it will ensure a hassle-free cash flow. An accountant makes certain that the landlord enjoys tax-effective property ownership. 

Also, in various scenarios, where the landlord incurs expenses wholly and exclusively for property rental business, claims part expenses, incurs maintenance and repairs costs, is required to calculate a profit or loss for more than one property, or has tax implications on account of a jointly owned property, the accountant can work out the documentation required and the tax liability in the different scenarios.

Ensure surplus money is adequately invested.

Owning a property is owning a long-term financial asset, the benefit of which can be enjoyed for years to come. A rental property typically provides the landlord with residual monthly cash flow, which, if invested wisely, yields not only a guaranteed passive income for many years but also an opportunity to build reserves. Hence, hiring a good accounting professional to help one develop financial discipline for such investments is advantageous. Some of how the landlords can invest the surplus funds are as follows:

a) Maintenance and Safety: With the change in every season, the landlord should look at which items need to be cleaned or replaced. Ensuring fire alarms and emergency lighting are in good working condition and investing in the best quality for these systems not only keeps the property safe but also ensures that the landlord doesn’t incur liabilities on account of faulty systems. Any white goods requiring repairs and replacement can be done through the residual cash. These small changes make the property attractive to the tenants.

b)   Prepayments: Applying the surplus cash flow to paying down the principal balance helps reduce the loan term by a few years. This can eventually give the landlord the flexibility to invest in more buy-to-let property on the mortgage.

Ensure all expenses are correctly accounted.

Landlords need to ensure business and personal expenses are accounted for separately. It is best to have a separate credit card and bank account, which are used only for rental property expenses. In the case of multiple properties, particularly when one has more than 3-4 properties, it is best to have a separate bank account for each property you own.

For a given property, one can have rental receipts deposited into one account, along with any taxes and repairs for that property, being debited from a single bank account. The expenses that can be reported include but are not limited to advertising, auto and travel expenses, cleaning and maintenance, commissions, insurance, legal and other fees, management fees, mortgage interest, repairs, taxes, and utilities.

Typically, lenders are less tolerant of buy-to-let mortgage arrears and treat them to a certain extent on par with commercial loans. Hence, missing out on Loan EMIs can have some serious consequences.

Management Reporting.

A monthly property management report outlines the property’s performance and identifies areas that require attention. By and large, the following reports should be covered in the monthly management report:

Balance Sheet: helps you track your current assets and liabilities, showing you how much money you have to work with.

The monthly Income and Expense statement tells you how much money you made during the reporting period and how much you spent,

General ledger transactions are the backbone of all financial reports. General ledger scrutiny provides a comprehensive overview of your rental business.

The accounts payable report tells you how much money you owe against the property. Tenant receivables: tells you how much you are due to receive from the tenants and

The prepaid report tells you how much of your expenses you have prepaid

The monthly bank statements with reconciliation ensure that your bank accounts match your ledger accounts penny by penny.

Conclusion

In conclusion, having an experienced accountant will have a positive impact on your retail business. It is their experience and knowledge of the latest U.S. accounting standards that will make your business more compliant and put you ahead of your competitors.

If hiring an accountant directly is not possible, you can avail yourself of their services through a professional service provider, just like others do. Among the many service providers offering their accounting services to businesses based in the USA is E2E Accounting, which become quite a name. The reason for its popularity is its talented team of accountants, who are well-versed in the latest accounting standards and utilize the latest processes to streamline the accounting process. Please find out more by writing to us on our contact form and get an immediate response from our executive.

Hoping to see you soon.

Bookkeeping Tips for eCommerce Companies in UK

Bookkeeping Tips for eCommerce Businesses in the USA | E2E

The shift from brick-and-mortar businesses to eCommerce has been the highlight of the business world over the last two decades. The United States of America has the most advanced eCommerce market, with eCommerce sales reaching $1.29 trillion in 2025. More and more retailers or product manufacturers are looking to establish an online presence for retail distribution and sales. While this trend is here to stay, let’s look at some of the bookkeeping tips for setting up a financially stable and viable eCommerce business

Integration of Amazon/Shopify to Accounting Software.

Managing your Amazon FBA account or Shopify account using Google Sheets or MS Excel can be a daunting task, given the various items involved, such as Chargebacks, Shipping fees, Promo Rebates, Sales Tax collected, and FBA inventory reimbursement. Listed below are a few accounting software tools designed to integrate with sales channels, making accounting easier and more efficient.

Xero: Xero boasts a user-friendly interface, along with a wide selection of add-ons. It can be easily integrated with A2X or Stitch Labs for a customized Amazon Seller experience. Additionally, it features a mobile app, allowing access on the go.

A2X Accounting: The A2X app connects systems to cloud accounting, automating bookkeeping for Amazon Marketplace transactions. When Amazon creates a new settlement file, A2X can generate a summary for it, along with the ability to split multiple-month settlements on a per-month basis for multiple years. It works excellently with Xero, QuickBooks, and Shopify.

NetSuite: For accounting software to integrate with Shopify, the use of apps like Zapier and A2X is required to set up the integration. Alternatively, you can find an app connector in the Shopify App Store. Another way to streamline your operations is to integrate NetSuite with your online Shopify store, which offers a scalable solution that seamlessly handles financial data and sales channels.

Clarity on Accounting for Sales- One single Invoice per month by sales channel/ Geography.

One of the key functions of good bookkeeping is to assist in creating projections that forecast future business activity. One area that has a significant impact on the eCommerce business is sales. A detailed understanding of sales will help inform decisions such as which products to promote, when to increase a product’s price, and how to recognize seasonal fluctuations for each product.

Using A2X helps automate eCommerce accounting by connecting your accounting software to your sales channels, allowing you to track sales based on different tracking categories, such as sales per month, per channel, or by country. For example, suppose you are looking for accurate sales data from Amazon. Still, the backend report provided by Amazon does not bifurcate the numbers by categories such as FBA fees, shipping fees, warehouse fees, and chargebacks. In that case, it may all be recorded as “Sales,” which would be incorrect. A2X can avoid this problem by automatically updating your books from Amazon’s backend.

Daily bank Reconciliation to identify failed payments.

Massive volumes and speed of exchange typically characterize an eCommerce business. Fierce competition and marketing innovations have prompted eCommerce business owners to complement their product offerings with a range of complementary services, including gift cards, trial periods, flexible payment options, and reduced shipping costs.

The complexity of completing a transaction multiplies in a digital environment. One single online order requires the action of at least four parties other than the customer and merchants themselves – their banks, the payment processor, and the parcel delivery company. In the event of cancellations, refund requests, or supply chain glitches, the complexity level doubles.

This requires a three-way reconciliation between payment processors, banks, and the ERP systems, which is performed in two steps: processor to bank and processor to the internal system. This will not only reduce any risk of fraud but also identify any unauthorized withdrawals or bank errors.

Analytics report- Geography, product, etc.

Using analytics to uncover customer insights is a game-changer for an eCommerce business. Yet, having a vast amount of data to mine is different from gaining clear insight into customer preferences. The difference lies in the ability to extract the most value from your data. You can choose from various analytics programs, such as Google Analytics, Mixpanel, Adobe Analytics, and Statcounter, among others. In addition to an Overview Dashboard, some valuable analytics reports include:

1.Sales by Channel. The data in this report will help you identify which channel sources are successful and which are underperforming

2.Sales by billing country. This report helps you identify which countries contribute the most to your revenue so that you can determine where to invest in new markets.

3.Sales by Product. This report helps you identify the bestselling products by season or period.

These reports enable you to see margins on an item-by-item basis. When you total the cost of goods sold and link it to relevant suppliers, you can see how much money is being spent on each item and which items you need to focus on. Having this kind of data is a solid negotiating tool.

Portal for suppliers to extract invoices.

Accounts payable automation enhances efficiencies, enabling finance to scale and adapt to their business-changing needs. Using a supplier’s portal reduces supplier payment frictions, as these are web interfaces for collecting and displaying information pertinent to suppliers. This information includes, but is not limited to, payment histories, Tax IDs, and invoices.

Using a suppliers’ portal reduces data entry errors as well as the dependencies on the accounts payable team. When a supplier payment system is integrated into the supplier portal, it centralizes the supplier management system, allowing for ease of reconciliation and reporting.

Pay invoices of suppliers ahead of time to gain discounts.

Reducing the cost of sales is a sure-shot way to increase the profits from your eCommerce business, and paying invoices ahead of time to gain a discount helps you achieve that. If your supplier doesn’t offer you any benefits for advance payments, you could work on striking a deal with your supplier’s competitors to get a better rate. While it is evident that to avail of this benefit, you need to close your cash flow gaps and increase your working capital, any gaps in the cash flow can be fixed by using tools such as credit cards, bank loans, and capital advances for eCommerce or marketplace sellers.

Conclusion: Expert Bookkeeping Tips for Ecommerce Business

By understanding these areas and how they impact your eCommerce business, you can make the best decision about managing the bookkeeping of your eCommerce business and find the bookkeeping software or service that’s right for your business. To further support your eCommerce business, you can partner with professional accounting service providers offering bookkeeping and various other accounting services.

We are certain you have heard frequently about E2E Accounting from your competitors. After all, many of them have chosen us to help them in their bookkeeping work. Our accounting services, especially bookkeeping, have helped streamline their processes, bringing in cost benefits and an increase in the quality of work. For further information, please provide detailed information on our website contact form, and you will hear from our executive soon.

Wishing you luck and success and looking forward to future association.