Accounting basics for the entrepreneur – brought to you by FreshBooks accounting software solutions

At FreshBooks, part our aim is to help small business owners and entrepreneurs to manage their finances easily and accurately with the aid of our expertly-designed accounting software. But more than that, we want to help you understand exactly how your finances operate, in order for you to control them as effectively as possible.

Sure, our accounting programs will do all the hard work for you, but we also know that you want to take charge of all aspects of your business, regardless of how effective your accounting software may be.

Below, we’ve provided some tips for business owners and entrepreneurs who are eager to manage their own finances. By following the advice below while utilising FreshBooks’ accounting software, you’ll acquire a clearer understanding of your company’s finances without wasting valuable time.

Explore the tips below, and browse FreshBooks’ range of easy-to-use accounting software programmes to gain control of your business finances today.
Accounting tips for entrepreneurs

The good news for small business owners is that there is no set, legal way to do your books – they must simply reflect the business’s earnings and expenditure as accurately as possible. Most importantly, the way you run your finances must make sense to you. That said, the tips below will help you to manage your cash flow in a logical, effective manner – whatever type of business you’re running.

Create a ledger account

Begin your bookkeeping by creating a general ledger account – one of your company’s most basic, but important, financial statements.

A general ledger is one of the easiest accounts to create, and the one that most succinctly summarises the business’s income and expenses. Drawing up your ledger is fairly simple to do, particularly if you use accounting software. The ledger provides a record of your payments and receipts, and should be updated on a daily, weekly or monthly basis.

Keep your finances separate

A big mistake that many new business owners and entrepreneurs make is mixing their personal and business cash. Even if you’re the sole owner of a company, it’s crucial to keep your finances separate by maintaining different accounts for personal and business money. This is also vital for tax purposes, and will help you to keep track of your expenses and budget easily and accurately.

Speak to an accountant

Even if you intend to complete your accounts yourself, it’s worthwhile to speak to a qualified accountant, and to ask them to assist you in setting up your bookkeeping system. A professional will help you to understand accounting practices, making it easier for you to use software such as FreshBooks’ accounting packages. Moreover, he or she will show you how to do your tax reporting correctly, and will assist you when you need to prepare your income tax statements.

Maintain regular, meticulous records

Never allow yourself to fall behind on your bookkeeping. It is absolutely essential to ensure that your finances are always up to date, so if necessary, set aside a specific time each day or week to attend to your books. Keeping accurate, up-to-date records will help you to recognise trends, potential weaknesses and growth opportunities. It will also ensure that you’re never without written proof in the event of monetary disputes.

Purchase reliable, easy-to-use accounting software

Making use of an advanced accounting program such as FreshBooks’ accounting software takes the guesswork out of managing your finances – and also removes the incidence of human error.

Using this type of software saves time, increases accuracy and provides a paperless, highly effective means of maintaining your financial records. Each of FreshBooks’ accounting packages includes a demo to help you through the installation and use of the programme. Moreover, we offer telephonic and email support to all users of FreshBooks’ software, valid for 12 months from the day you register your software with us.

View FreshBooks’ 2008 range of accounting software now, or speak to our consultants today to discover which package would be ideal for your business’s bookkeeping requirements.

Small Business Accounting Software

Year End Is Around the Corner…


With most companies’ year end being December 31st, its time to get your companies financials in order.

Most accounting firms will complete a clients bookkeeping for the month of December in January of the following year.

This is an essential time for Bookkeepers and Accountants to review the year end Profit and Loss statements as well as the Balance sheet with clients so that final year end edits and adjustments can be done prior to filing the incorporation tax returns and prepare the financial statements.

It is always to get a head start and review these figures and make some adjustments prior to the year end to avoid a rush and any last minute mistakes.

Payroll Summaries

Also of companies are already getting their Payroll Summary for 2016 in the mail from Revenue Quebec. If you have gotten this already, do not panic! It is only due with a copy of the T4/RL 1 slips of employees by February. It is always best to send them in around January 15th to avoid any mistakes, and the rush. It also allows employees to file their personal taxes earlier or to be able to collect all their documents necessary to file their taxes as well as to make a profitable decision on whether or not to purchase RRSP’s for that year.

How Incorporation Taxes Work

One of the advantages of owning an incorporation is that you can write off expenses to help reduce the amount of taxes to be paid. For small companies, they generally pay 19% of taxes on their profits. Which means they need to total up the revenues for the year and minus it from their expenses, the number they get after doing so would be either their profit or loss number. If a company in Quebec has a loss, then they do not pay taxes, they simply pay the annual incorporation fee to Quebec. They can also use this loss for future years when the company shows profits to reduce the taxes to be paid at that time. If the company shows profits, than they will pay the taxes to both federal and provincial governments and the annual incorporation fees would be paid to Quebec.