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accounting

Financial reports analysis

Financial Reports Analysis

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

Record all your day-to-day accounting activities to keep track of them. Maintain accuracy and do this regularly. Track debit cards and credit accounts, inventory records, payroll, and all expenses. Separate your business and personal records to avoid confusion during tax submissions.

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

Balancing accounts payable and accounts receivable is crucial. A large amount in the receivables column means nothing if you don’t collect those balances. Ensure timely payments from your customers for the services you provide. Accurate receivables keep your company afloat, so don’t let this slip by the wayside.

Hire a professional tax accountant

Tax accountants can assist with all your accounting needs. They are professionals and experts in the field. They help keep your records up to date and organized. They can also help you avoid potential fees, find loopholes, and get additional tax deductions that you might not know about. Their knowledge can provide tax advantages you can’t achieve on your own.

Did you know that in New York City, uncut bagels are tax-exempt, but if they’re cut, an 8.875% sales tax is added because it’s considered prepared food? Weird rules like that are 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.