When you decided to start your own company, you likely focused on the products or services you were selling, along with your amazing customer service and marketing skills. While running your own small business offers plenty of upsides, it also means you’re responsible for every aspect of operations, including the parts you think are beyond your capabilities or just plain boring. Accounting tasks often fall into both categories, but that doesn’t keep attending to them from being absolutely necessary. The good news is that you don’t need an accounting degree or even be good at math to do what needs to be done on a day-to-day basis. The five tips that follow are simple to do. Incorporating them into your everyday tasks and mindset will cover the basics and give you a much clearer sense of your business’s financial health. Keep in mind, it's much easier to establish correct bookkeeping practices from the start of your business, than it is to go back and fix problems later. If you find you are in over your head, hire a professional accountant to help you.
Avoid mixing business expenses with personal expenses
It may feel simpler to reach for the same credit card or use the same bank account to pay for everything. Still, from a business accounting perspective, it’s a recipe for disaster. Whether you are a sole proprietor or are an LLC (where separating these expenses out is a requirement), you’ll find that if you pay for your business expenses separately, it will make it much easier to optimize your taxes and to make smarter decisions based on a good understanding of your revenues and cash flow.
Use cloud-based accounting software
Where it was common for small businesses to invest in off-the-shelf accounting software, cloud-based software, such as QuickBooks Online, has made it much easier to access your information anywhere. It also offers the advantage of continuous software updates that are responsive to improved performance and legislative changes, and superior security. If you are interested in setting up an accounting system with QuickBooks Online, book an appointment with one of our Advanced Certified QuickBooks ProAdvisors to get the lowest price on your subscription or help with setup and data migration.
Log expenses and payments every single day
Procrastination is something we’re all guilty of, especially regarding tasks we’d rather not do, but keeping current on logging expenses and revenue is crucial. Make it part of your daily activities, like making yourself a cup of coffee or brushing your teeth. Otherwise, you’re going to have a big pile of records that either has to be entered into your books or get forgotten about completely. Call our office or book an appointment to inquire about our accounting and bookkeeping data clean-up services.
Put a quarterly (or monthly) check-up on your calendar
Every quarter you need to take a close look at how your business is doing, so put it on your calendar as if it is a necessary appointment. Suppose you’ve kept your records up to date. In that case, this will provide you with the opportunity to get a helpful overview of how your business is doing and what trends you can track and respond to.
If you can’t handle your accounting tasks, get help
We offer bookkeeping and accounting services to help you stay on track. Though you may manage on your own for a while, business growth may necessitate hiring help. Whether that is a part-time or full-time employee or an outside service like ours is up to you. Just make sure that you recognize when you’re in over your head or out of the time you need to do it yourself.
Keep your business headed in the right direction with the critical financial data you need to make smart decisions. Contact us to discuss how we can help your entity prosper.