Hosted Accounting Software: Income Statements

The income statement is an integral component in a small business. Known simply as the profit and loss statement, this paper is the backbone of a company's bottom line-used for tax preparation, budget planning, loan securing, and formulating future projections. Using hosted accounting software can protect the integrity of this document, ensuring that it is accurate and error free, and that it does not fall victim to computer crashes, theft, or other disasters.

In addition to serving as a required document for taxes and loans, the income statement is a useful tool in evaluating the budget and making sound financial decisions for the betterment of the company. Microsoft small business accounting software, known as SMB Controller and offered by NextCorp, can be used in conjunction with other applications to make all facets of the small business coordinate with the income statements.

For example, the income statement might reveal a decrease in sales during certain months. Using web-based accounting software, such as SMB Controller, available within the suite of products, can help monitor this phenomenon while the customer relationship management software can determine why this might be occurring. Therefore, by using the software within the context of the income statement, a company can make better, more focused marketing decisions. The income statement can also help determine the number of dollars that should be spent on marketing and advertising and in what capacity.

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Microsoft Small Business Accounting: Personnel

The salaries, raises, bonuses, and commissions of small business personnel are contingent on positive numbers on the income statement. Microsoft small business accounting software can ensure that workflow and revenues are reconciled and can help determine the productivity of employees. It is also a vital tool for compensating commissioned or bonus-based sales staff.

An accurate income statement can also help determine if employee perks are benefitting your bottom line. For example, company vehicles may be a coveted perk for your sales staff, and with tax credits for depreciation and costs benefitting the employer, these types of personnel investments may present a win-win for both parties - measureable through accurate income statements.