You may be a business owner, but you’re not an expert in accounting (unless the business you own is an accounting firm). If you’re just starting out, here are some accounting tips to help you through the process.
Keep very organized, accurate records
All of your day to day accounting needs to be recorded so that you can track it. It should be accurate, and it should be done on a regular basis. This means you need to track debit cards and credit accounts, inventory records, payroll, and all expenses. You also want to make sure you keep your business and personal records separate so you don’t have to try to sift through them when it comes time to submit your taxes.
Write down all your business expenses
It is obviously important for you to keep track of all of your business expenses as this is a common accounting practice. This needs to be done on a fairly regular basis. Every week, if not every single day, is recommended. If you use a business credit card, keep track of your statements so you know how much you’re spending. If you spend cash, file digital copies of the receipts so they are all in one place. This will help you keep an excellent budget so you don’t have to worry about running out of money.
Make sure you’re collecting balances
When you’re balancing your accounts payable and accounts receivable, it may look great to see a large amount in the receivables column. It doesn’t really mean anything, though, if you don’t collect those balances. Make sure you are always receiving on-time payments from your customers for the services you are providing for them. Accurate receivables keep your company afloat, so you don’t want that to slip by the wayside.
Hire a professional tax accountant
Tax accountants can help you with all of your accounting needs. They are professionals as well as experts in the field of accounting. They will be able to help you keep your records up to date and organized. They also are well equipped in many areas of accounting, so they can help you avoid potential fees, find loopholes, and get additional tax deductions that you didn’t know you were eligible for. The knowledge they have will be able to give you tax advantages that you can’t get on your own.
Did you know that in New York City, uncut bagels are tax exempt, and if they’re cut, an 8.875% sales tax is tacked on because it is then considered prepared food? Weird things like that are a perfect example of why you should hire a professional to handle your business accounting. If you have more questions about accounting for your small business, give us a call today.