Establishing Accounting Practices

Establishing Accounting Practices

Establishing Accounting Practices for Your Phoenix Business

Whether you’re an established SMB with multiple locations and a fleet of vehicles or a relatively new startup with a handful of employees, your accounting practices are important. Failing to maintain good accounting practices can lead to problems at tax time, hamper your ability to make informed decisions, negatively impact cash flow and make it difficult to obtain additional financing or attract investors. 

Working with an experienced business consulting firm in Phoenix makes it easy to develop and implement good accounting practices. H&H Accounting Services can help with all your accounting needs, including establishing reliable accounting practices for your business. 

What Is GAAP?

Generally accepted accounting principals (GAAP) are established by the Financial Accounting Standards Board (FASB) as required guidelines for publicly traded companies. Establishing clear and consistent methods of accounting ensures optimal transparency for all parties involved, from bookkeepers and tax preparers to decision makers at businesses. Businesses that follow GAAP maintain optimal accountability.



Two Choices: Accrual Versus Cash Basis

Businesses that use accrual accounting record credits and debits as they’re incurred, even if money has yet to technically change hands. On the other hand, businesses that rely on cash basis only record expenditures or assets when they’ve received payment. 

Accrual can potentially provide a false sense of stability for some businesses, especially those who may have clients in arrears. Businesses that rely on longer pay periods, like NET 60 or NET 90, may benefit from accrual accounting, especially if they have reliable clients who tend to pay on time. 

Businesses that are more heavily reliant on cash flow, like restaurants, could get in trouble using accrual accounting. Their bookkeeping may provide inaccurate snapshots of the assets and cash they have on hand.

Use QuickBooks

QuickBooks is a convenient all-in-one software solution for nearly every business’s bookkeeping and accounting needs. Some of the many necessary business tasks that can be completed or even automated with QuickBooks include: 
  • Invoicing clients
  • Tracking upcoming bills and expenses (QuickBooks even has an app that can track employee mileage) 
  • Printing out a variety of vital statements, including profit and loss statement, balance sheets and cash flow statement 
  • Automating payroll 
  • Staying on top of inventory 
  • Make filing business taxes significantly easier 
  • Tracking receipts

There’s virtually no small business accounting need that can’t be met with QuickBooks. The complexity and range of features might even be considered a downside of the software for business owners attempting DIY accounting. That’s why so many SMBs turn to QuickBooks-Certified ProAdvisor bookkeepers, like those at H&H Accounting, to handle their QuickBooks needs. 

Establishing Internal Controls

Accountability is hugely important when it comes to the bookkeeping and accounting best practices your business follows. The best way to avoid any potential fraud is to establish clear internal operational practices that everyone follows. For example, the employee responsible for inventory may write the check to vendors, another employee signs the payment authorization and your bookkeeper reconciles the business checking account each month. 


Financial transactions that involve multiple touchpoints make it more difficult for employees or partners to steal money. Keeping physical receipts and checks for your records is another good way to ensure there’s always a paper trail if questions arise. 

Should You Track Employee Time?

In task-based office jobs, tracking employee time can be particularly valuable. It allows a business to gauge performance, establish baselines for how long certain tasks should take and spot areas of improvement. It also enables those businesses to establish clear profitability expectations of certain services or positions. 




Staying on Top of Accounts Payable and Accounts Receivable

Failing to meet your debt or invoice obligations can result in late fees or delayed shipments of supplies or inventory your business needs to operate. You can easily avoid those issues by simply making a habit or setting a schedule of checking accounts payable. Establishing a routine can ensure you’re never missing bills. These tasks can be further automated with your bookkeeper or through a platform like QuickBooks. 


Business owners are understandably busy people, which is why it’s not unheard of that accounts receivable sometimes fall between the cracks. Unfortunately, if you ignore customers who owe you money, you may experience significant deficiencies in cash flow that could interfere with business operations. 


Getting Professional Help Establishing Accounting Practices in Phoenix 

H&H Accounting Services is dedicated to helping client businesses thrive. One of the ways we help our business accounting clients grow is by establishing reliable accounting practices. 


The idiom that “knowledge is power” is especially true for business owners and decision makers. Proper accounting practices ensure you have complete transparency in your business so you can fully understand your strengths, weaknesses, opportunities and challenges. We ensure you have the data you need to make informed decisions. 

Call us at (480) 561-5805 to get started. 


Share by: