Accounting Systems For Small Businesses

Accounting Software Alternatives for Micro Businesses in Canada

Accounting Software Alternatives for Micro Businesses in Canada.

If preparing professional invoices and accepting payments online are the main reasons for considering accounting software, you wouldn’t be wrong to look at QuickBooks Online, Zero, or Wave accounting.

Bookkeeping Misconceptions

Today’s online bookkeeping software is great. But software vendors can be a little too exuberant when they try and sell it. It isn’t really expert software. You need bookkeeping experience before you start using it. Small business owners need to temper their expectations. Many new businesses don’t need a bookkeeper full time, but will need someone experienced to do the work – or at least oversee the process. Imagine using word processing software to write a book. You’ll need to have something to say, and you’ll have to know how to write.

Cash vs Accrual

Discusses the differences between cash basis and accrual accounting. For many freelancers and small teams the cash basis may be adequate for your needs.

KISS SERIES The End of Bookkeeping

Double-entry bookkeeping was first described by Luca Pacioli in 1494. It is the fundamental algorithm at the heart of any accounting system, and it is beautiful and elegant in its simplicity. The concepts are crucial for Canada’s 220 thousand accountants and another 240 thousand or so accounting technicians and bookkeepers. It’s just that they are still too complicated for our smallest businesses. But that’s OK. The function of the bookkeeper was originally to record transactions. Today that is NOT necessary. Somebody else has already recorded the transactions when you buy something or deposit money into your bank account. Today you only need to ‘harvest’ and describe transactions. That is a whole lot easier… …which is a good thing when you’re already working 100% of the time getting your products right – and making sure you get paid.

The Paperwork Study

In 2008, the Canadian Government of the day launched a comprehensive study of the tax and regulatory burden faced by Canadian business. According to the authors of the report: Administrative tasks and excessive paperwork burden remain a long-standing distraction for business owners. Taking a broader view, the problem of excessive paperwork can lead to reduced business start-ups, trade and investment barriers and an overall decline in economic productivity by making it relatively more expensive for Canadian businesses to operate. The study provided a breakdown of costs in the 2005 reference year. They then measured the costs 3 years later, at the conclusion of the study. Sadly, they found that costs actually increased significantly during the 3-year term of the study. The Small Business Analysts Society of Canada was founded in 2020 with a mandate to develop and deliver training for accounting technicians in Canada. A candidate trains to become a Business Analyst Technician, and part of a team that helps small Canadian businesses comply with Canada’s complex tax and accounting requirements. The courses were designed to be either self-study or delivered through participating community colleges. But, the most important part of your training is the paid internship, where you gain real-world experience working with skilled accounting practitioners.