Managing a business consists of an extensive to-do-list; And within this list my least favorite is the financial management part, maybe you can relate – Unless you’re an accountant by profession.
By: Tatiana Cortes
Accounting is essential for the success of your business and is extremely important to keep your “books” accurate and in proper order at all times. So, here are a few accounting tips you will need to implement as an entrepreneur:
1. Know the Law
You can’t practice good bookkeeping if you don’t know what you need to be keeping good records of. As a small business, you need to make sure you know the law and how it applies to your business. Make sure you are in compliance, filing taxes on time and keeping records of income, expenses, invoices, etc.
2. Personal & Business Don’t Go Together
The best way to simplify is to keep things separate when it comes to finances. Open a separate account for your business and keep your records separate.
3. Record Your Spending
The way you are going to offset your profits at tax time is with your expenses. This is why is so important to maintain a good and detailed record of your expenses with receipts and invoices. Items that can range from your home office furniture, laptop, to a pack of post-it notes – it all adds up.
4. Take Advice
Find a personal accountant to ask for advice. An accountant can give you good bookkeeping advice, it will keep you on track and ensure that at the end of the year you have all the records and documents you need.
5. Cloud-Based Software Is the Way
Purchasing accounting software and keeping up with upgrades it’s a thing of the past. Popular small business accounting services such as Xero provides you with up-to-date accounting products and stores your data in the cloud.