Small businesses can be made or ruined by their accounting. To help you master some of your business’ accounting needs, Adrian Anderson, MAcc has six accounting tips every business should be utilizing.
Allot Time To Work On Business Accounts
Many small business owners don’t enjoy working on their business accounts and tend to push off the task whenever possible. This can leave the business owner unaware of issues that only their accounts can reveal as well as other issues.
You should allot time at least once a week to work on your business accounts. Even if you aren’t sure you have anything to look at, stick to your allotted time so you stay in the habit of taking care of your business accounts.
Be Accurate And Diligent In Your Recordkeeping
As you go through your business records, you can do several things to ensure that they remain accurate.
- Log expenses and profits regularly
- Track and file invoices
- Double-check payroll disbursements
- Keep clear records of inventory
Depending on the industry your business is in, you may have different things you need to track for your records. Also, the more accurate your records are, the easier it will be to file your taxes.
Keep And File All Business-Related Receipts
Aside from keeping your regular expense receipts, be sure to keep and file any receipts which are attached to your business. Some business-related purchases you may make outside of your normal operating costs are:
- Training seminars
- Item replacements
- Office upgrades
- Business lunches
Perform Regular Profit And Loss Assessments
Beyond just tracking your profits and losses, you should make periodic assessments of your business by creating profit and loss statements. These statements will allow you to gain a broader perspective on your business and see more clearly how it is performing.
Depending on your business size and the volume of business you perform, there are different intervals where you will want to perform these assessments. Most small business owners would benefit from monthly profit and loss assessments as well as a 6-month overview.
Keep Personal And Business Expenses Separate
Some small business owners are not as strict with keeping their personal expenses and business expenses separate. This can especially create issues when you need to have your taxes done, as the tax breaks small business owners can receive do not apply to your personal needs.
Outsource Your Accounting Needs
By choosing our accounting services, you can tailor your accounting needs to suit your business without you needing to micromanage your accounts. That way, you can focus on your business operations while our accountant manages your accounting needs.
To consult with our accountant on what your business may need from an accountant, contact us today.