Accounting Basics Digital Marketers Should Know

Cash Flow – This is a summary of cash entering and leaving your company. Making a point to handle your bookkeeping is another basic digital marketers should know. This can be difficult to do for many busy business owners but it is of the utmost importance. Invoices should go out each month at the same time where possible. They also need to be followed up on at regular intervals. And while bills aren’t fun, they need to be paid each month and on time. So, having a bill paying schedule can help you avoid any issues. When that’s all done, you should also have a defined “closing” period, for example, every month or at least every quarter. This keeps the moving and your company financially disciplined. You will make a lot of mistakes if you do this annually and neither you or your bookkeeper will be happy.    accounting basics digital marketers should know

Monitor Success

For digital marketers, monitoring the success of a campaign is crucial. It helps you understand what is working, and what isn’t so that you can improve your strategy. Monitoring the financial success of your business is also important. Good accounting can help you increase profitability, by helping your identify projects that have the greatest ROI. It can also help you analyze ongoing expenses, and made adjustments as necessary.

The Right Accounting Software For The Job

Another accounting basic digital marketers should know is that having the right accounting software is really important for accuracy. Good accounting software can make a huge difference in your accounting process. Some great options for digital marketers are:

QuickBooks – You are probably familiar with QuickBooks, and with good reason. QuickBooks has been the little darling of accounting software for a while. It is easy to use, and offers a lot of great features like invoicing, expense tracking, time tracking, reports, budgeting, check printing, and lending. There are several different pricing options ranging from $20-$150 per month with an additional $30-$80 per month for payroll. For the price and all of its features, it is a great value.Xero – Xero hasn’t been around as long as QuickBooks, but it is equally as impressive with its functions, ease of use, and affordability. One benefit to Xero, is it allows unlimited users with the ability to set permissions, so you have control over who has access to what. Xero also has one of the strongest security reputations in the cloud accounting world.

 

Both of these programs have mobile availability, which makes keeping track of expenses a breeze. As of 2017, QuickBooks and Xero reported worldwide users of 5 million and 1 million, respectively, a huge market.  

Know When To Outsource

One of the most important accounting basic digital marketers should know is to know when it is time to outsource your accounting. When you first start out, your accounting is pretty simple and straightforward. However, once you start to scale your business, things get a little more complicated. With business growth comes more income, more employees, and more responsibilities. It can be challenging to stay on top of your accounting and run your business at the same time. Some reasons to outsource your accounting are:

  • Accountants specialize in accounting.
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  • It saves time.
  • It can save you money.
  • Reduces compliance issues.

When hiring an accountant it is important to understand that there are several different areas that an accountant may specialize in. Some accountants only do bookkeeping, while other specialize in tax preparation. Super accountants can handle both. It is important to identify what you hope to achieve by hiring an accountant so that you are both on the same page. As an added bonus, choose an accountant that has knowledge of your business, who isn’t going to think that a “Facebook” charge on your account is a personal expense.

These are just some accounting basic digital marketers should know. For more accounting tips please visit our partner site at www.mytaxhack.com. The accounting experts at The Tax Hack Accounting Group specialize in digital marketing tax strategies.

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