When you open a small business, you make a commitment to become a jack of all trades. Not only are you in charge of the fun tasks such as product acquisition and marketing, but you are also stuck with the less desirable tasks of accounting and tax filing.
If you are knocking it out of the park on social media and your business is quickly growing because everyone loves your products but you are struggling with the bookkeeping side of things, then these tips will help you improve your small business accounting:
Tip: Don't Ever Mingle Your Personal and Business Finances
If you haven't already done so, it is vital that you separate your personal accounts from your business expenses and income. If you mingle the two together, and many new small business owners often do, you will eventually have a lot of problems keeping track of things and accurately filing your taxes at the end of the year.
If you haven't already done so, open up a separate bank account for your business and make sure all of its income and expenses go through that single account. Also, if you use a credit card for your business expenses, then make sure you get one specifically for the business.
Tip: Designate Time Each Week to Deal with Accounting Tasks
If you wait until you have time to sit down and take care of all of your business's bookkeeping tasks, then the time will never come. Before you know it tax day will arrive and you will have a large box full of receipts and bills to make sense of. To avoid this fate, designate time each week to handle all of your accounting tasks. If you do a bit each week, then it won't take you nearly as long and won't become so overwhelming.
Tip: Utilize Accounting Software and a Professional Business Accountant
Since you are a small business owner and not an accounting professional, you can't be expected to have a lot of bookkeeping skills. Thankfully, in this day and age with all of the available small business accounting software that's available, you don't have to be! In fact, one of the best investments you can make for your business is a small business accounting software package.
Finally, you should also consult with a professional financial planner or accountant early in your business ownership. Getting some good solid financial advice early in the process ensures you stay on top of things and out of financial or tax problems. If you need assistance, contact Universal Accounting and Financial Services, Inc.