Your job as an accountant is made easier when clients keep detailed records and track their expenses. As any accountant will know, clients are not always perfect in this area. Sometimes, it is difficult for newer clients to realize the negative effects of their mistakes and lack of organization on your work. File Request Pro allows you to easily create customized and user-friendly upload Client Portal for accountants. You can integrate them with GoogleDrive, Dropbox and OneDrive so that files can be automatically transferred to these locations. Zapier and Webhooks allow for third-party integrations. Automate file requests, reminds, and thank-you emails.
Your clients can change their ways and streamline their processes with just a bit of coaching. These 11 tips are the first step. As your clients follow your guidance, you can offer more specific advice about their industry, finances, or company structure.
Do not mix business and personal expenses
One of the most fundamental principles of business accounting is to seperate business expenses from personal. However, clients might not be aware of this principle.
A new business owner may not be aware that receipts from business purchases made with a personal credit card can be stored in company files. Your clients should keep their business credit cards and bank accounts separate from their personal cards and accounts. Your clients should be advised to link their business accounts to expense tracking software, not their personal ones.
Automate, but double-check
Some business owners prefer to keep track of their income and spending manually. This should be discouraged and clients should look for accounting software.
Your clients should be aware that by linking their program with their business cards and bank accounts, all transactions are automatically logged. This eliminates the need to manually maintain spreadsheets.
Software platforms that can be integrated with each other are best
Tell your clients how important it is to integrate their accounting software and payroll solution. Payroll is an expensive expense for businesses. Your clients should have their accounting software linked to the payroll platform that they use.
A payroll platform that does not track payroll is incomplete. Numerous payroll programs provide many integrations, and even more.
Don’t overlook benefits
Your clients should emphasize to you that they must track their company’s expenditures on benefits.
Be on top of tax deadlines
Your small business client might not be aware that they may need to pay quarterly taxes. Your clients should be made aware of these taxes and stressed the deadlines, paperwork, and criteria they must meet in order to be exempted from quarterly tax payments. (Although, small businesses are not exempt).
Also, you should discuss with your clients a plan to ensure that they have enough money available to pay these taxes. Work with your clients to ensure that payment is made on time and the proper completion of forms. As they are important for the next tip, make sure that your clients keep track of their payment amounts.
Profit and loss statements should not be overlooked
One great tip that will make your job easier is to show your clients how to create a profit-and-loss (P&L), and then to update the P&L statements every quarter. Explain to your clients that P&L statements show how close they are to achieving their financial goals. To identify any changes in revenue or expenses, encourage your clients to compare the P&L statements from one quarter with the previous quarter.
Keep track of client payments
Your clients should be reminded to keep track of their clients. Experts suggest that no more than 15% of invoices for a company should remain unpaid at any given time. You should inform your clients about this. You should educate them about the best practices for pursuing unpaid bills, including the possibility of adding late payment fees. Next, educate your client about their payment habits.
Stay current on vendor payments
Clients will likely employ third-party vendors to provide key services. This means that they must pay them. Your clients should establish firm terms for vendor payments, such as net 15, net 30, and net 60 to ensure their financial stability. Next, show your clients how to implement these payment conditions. You can explain to your clients that these terms will help them know when funds should leave their accounts. This will make expense tracking and your job much easier.
Receipts are important
Clients pay vendors only after they receive invoices. However, invoices are not payment. You should tell your clients that invoices are not documents of payment. Instead, they should be considered receipts.
Your clients can send money to vendors via ACH payments. The receipt could be the bank statement that documents the transaction. The receipt is the bank statement that documents the payment.