If you have a small business, the last thing you want to do is focus on accounting. Instead, you probably would rather focus on your work – what you love to do for a living! Accounting has been one of those business tasks that usually gets put on the back-burner.
For those of us who dread accounting on our small business financials, OutRight.com aims to ease the pain. I've been trying out this service for a few months, and I can tell you that it is truly remarkable for the price. Their trademark is “free yourself from accounting,” and that it does.
From their website:
Outright records your income and expenses automatically, categorizes the transactions to maximize deductions, and prepares your estimated and end of year taxes, so you can get back to the work you love.
Yep. It does that. And so much more.
The focus of their marketing is that the average entrepreneur doesn't have time to track every single transaction they make – let alone calculate estimated taxes and all possible deductions. It's true. I remember when I was first starting my work at TheChristianDollar.com there was an overwhelming amount of info on how to conduct the business end of things.
You can truly automate your income and expense tracking by syncing your credit cards and PayPal accounts – perfect for bloggers and online business people. You can also manually enter transactions the old-fashioned way if you like.
Income and Outgo Automagically
When you enter the main window of OutRight.com, you are presented with a beautiful graph of your income vs. your expenses. Your profit is clearly shown and any notices (such as upcoming estimated tax submission deadlines) are displayed in the “Upcoming Events” section.
Reports are important, and OutRight gives you several ways to review how your business has been doing. First, you can view profit and loss by month, quarter, or by year. Second, you can view who your most valuable customers are. This will allow you to prioritize your pursuits as you do business.
One great advantage of this website is that it allows you to have your bookkeeper or accountant to have access. Simply invite them by email, and you'll have everything nice and tidy when tax time rolls around.
Accuracy and Security All-In-One
You may be concerned that OutRight might not properly estimate your taxes owed. To this, OutRight responds:
Because every person's tax situation is different, we cannot provide an estimated tax calculation that is guaranteed to be accurate. Instead, we provide a conservative guidance based on the following:
- We calculate your businesses profit through the end of the IRS quarter (or through today's date if the quarter hasn't ended.) For example, if you were to look at the taxes page on June 10, you would see profit – or loss – through May 31, which is the end of the second quarter for IRS purposes.
- We then calculate the self employment tax (which consists of social security and medicare contributions) using the latest IRS rates.
- To the self-employment tax, we add your business income tax. For this, we simply use the marginal tax rate based on the profit to date. For businesses earning higher income, this may result in a higher tax payment than using the average rate, but we figure it's better to be safe than sorry.
Finally, and most importantly, your business info is secure at OutRight. Your information is secured by encryption and backed up hourly just in case the site goes down.
These advantages have made OutRight.com a true help for me and my business. I recommend any small business owner to head over to OutRight.com right now and check out the services they have to offer. You'll be glad you did!
What's your favorite accounting program? Do you have any tips and tricks for automating your small business finances?