Sunday, October 26, 2014

Making easy with your Expense Reports

Business people are among the best risk takers because risk taking is an integral part of being an entrepreneur. There is another thing that they are great at - managing their expenses. Go out for lunch with any entrepreneur and you will find them meticulously keep the luncheon bill with them. Of course, for any businessperson luncheons are business expenses and they need to show the copy of the bill at the end of the year to claim income tax deductions. Without proper expense reports any business will end up paying more taxes and no entrepreneur is going to like that.

Any business runs on income and expense balancing. When the income is more than expense the business runs on a profit. While there are intricate calculations built into managing incomes and expenses it is really all about entering all data on both sides of the profit and loss statement and balance sheet and seeing the report at the end of the year. It's not the easiest of jobs because different accounting standards demand different ways of managing accounts that only trained accountants can do. But then, when someone starts their own business or is just about trying to break even they cannot afford to have an accountant on their payroll. They typically hire someone to balance their books at the end of the year. This is a cumbersome job for the accountant and a costly affair for the entrepreneur.

Today this job has been made much simpler and much more cost effective and this is thanks to some websites that offer free accounting software applications. To use this application one just needs to sign up for free and then get started. The way to handle the application is rather simple and someone with only basic knowledge of accounts can manage it. At the end of every quarter the application can be used to show various reports - total income report total business expenses report, total tax paid report and total commission paid report. These income and expense reports can then be emailed to the accountant, saving time for them and money for the entrepreneur.

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