Accounting may seem like an annoying task; more of a chore than something your business really needs. Proper accounting, however, is crucial for every small business. With marketing and operations, the financial side is an equal partner in the health of your business. This blog will explore five simple accounting tips to help you and your small business.
1. Keep Your Transactions Separate
One mistake many small business owners make is buying items for themselves or their family with the business’s credit card. While it is easy to do this, you should keep your personal and business expenses separate. In accounting, you keep track of every expense in and out of your company. This becomes difficult if you buy something personal and plan to pay the business back. By keeping it all separate, you will save yourself significant stress and headache.
2. Make Time For Accounting
You know that 15-minute jaunt you just made to Facebook? How about taking 15 minutes every week to do your accounting? It will help immensely if you have a specific time every week to look over your company’s finances. Don’t let anything else take priority over the time you set aside. You will begin to learn many great things about your company while doing your finances, and can easily see where your company is at financially. You will be more organized overall, and more prepared when tax season rolls around – no more long hours at the office trying to catch up!
3. Track Your Expenses
A helpful way to track your expenses is to follow the first accounting tip – keep your expenses separate. Tracking expenses will help when tax season is here or when an audit is taking place. While the IRS sometimes expects rounding off numbers such as mileage on a tax return, an audit will not take that into consideration. Tracking expenses will also help you see just how much you can spend on other items or how much you can’t spend. User-friendly software, like Quick Books can help make this process easier.
4. Expect Those Large Expenses
You may not think you’ll have many major expenses for your business, but you should always make sure you consider them. Planning for these expenses will cut down on stress caused by having to rush around gathering funds and loans. There are many things you can plan for, like updating your technology yearly. Place this on the calendar for the next two or three years and you will know what is coming your way.
5. When In Doubt, Call In A Professional
If you start having problems or are in doubt about the state of your finances, you can always call in an accountant who is trained in all accounting services. In fact, accounts enjoy working with the numbers and are more than willing to help make the process easier for you.
In the End
Accounting doesn’t have to be a drag and it can save money in the end. If you find yourself feeling overwhelmed, even with these handy accounting tips, give Landwehr Financial Services a call today at 320.203.0429. Our team is dedicated to helping you keep track of your expenses and stay organized, all with a friendly smile and jargon-free discussion!