Updated: Jun 27, 2020
Few things can make a small business owner cringe like the mere mention of business accounting. It is great when the payments come in, but beyond depositing the money, it can be confusing and can give any business owner a headache.
Here are 5 tips to make it a little easier on you:
Open a separate banking account for your business. Having separate accounts makes record keeping a lot easier. Having a separate credit card for your business is also a good idea.
Do not mix business with personal. After you open a separate bank account and cards for your business, make sure you use business accounts only for business. Personal stuff should should be purchased with your personal accounts. This keeps your accounting books clean and easy to read.
Don't forget to keep those receipts. You want to keep an accurate as possible paper trail on your expenditures. When it comes to being able to deduct them, you'll be happy you did.
Hire an experienced bookkeeper. Even with accounting programs that are easy to use, it is best practice to hire someone with knowledge and experience to help you with payroll, bookkeeping, tax preparation, budgeting, etc. You'll find that what you spend on an expert, to manage this part of your business, will more than pay off in the long run. It frees you up to do what you do best - growing and running your business.
Set aside around 15-30 minutes a week, no matter what, to put your paperwork in order to give to your bookkeeper. That way you won't misplace any paperwork your bookkeeper needs to keep your finances in order.
I hope these tips help reduce the stress for you, the small business owner and entrepreneur. If you would like a free consultation to see how I can help you with your accounting, please contact me at Rebecca@RHBizSolutions.com. I look forward to working with you!
RH Business Solutions