As a small business owner, you have a lot on your plate, which probably means that bookkeeping is the last thing you want to be doing. Unfortunately, keeping your books tidy and organized is necessary if your business runs smoothly. If you are struggling to manage your books but don’t want to hire an accountant, then the below accounting tips for small businesses are just what you need.
Keep your personal and business accounts separate.
Although this may seem obvious, you may be surprised at how many small business owners keep their personal and business finances in the same account.
To avoid having to sort through all your personal receipts, such as food shopping and school clothes, with your business receipts for office supplies and petty cash, make sure that you open a separate bank account that is just for your business.
There are a number of different types of business bank accounts to choose from, with basic ones and those that offer benefits.
Ensure your records are clutter-free
As mentioned briefly above, if you want bookkeeping to be a quick and easy process, you need to make sure you keep your accounts organized and clutter-free.
Rather than wait until your accounts are in complete disarray, try to keep on top of your bookkeeping so that you can easily find everything you need during tax season.
Don’t miss tax deadlines.
Speaking of taxes, it is crucial that you set yourself reminders when tax season is approaching to ensure you do not miss any important deadlines.
Ideally, you should start organizing your accounts for your tax returns as early as possible so that you are not rushing about when they are due.
Don’t forget to note any tax credits or deductions you can take advantage of, such as tax deductible donations and income tax credits.
Keep all of your receipts.
Another one of the accounting tips for small businesses is to keep all of your expense receipts. To avoid paying more tax than you need to, make sure that you keep every receipt that is related to your business so that you can file these as deductible business expenses.
If you work from home, then you can also claim back some of your domestic expenses so make sure you also have the paperwork for these to hand.
Again, as mentioned earlier, keep all your receipts neat and tidy so that you can find exactly what you need when filing your business taxes.
Download an accounting app.
If you cannot afford the expense of an accountant or financial advisor, but you are struggling to manage your books on your own, then there are lots of free accounting apps that you can download.
These offer advice and help with all aspects of accounting and bookkeeping, with tips on managing your budget and filing your tax returns.
Do not worry if you are not very tech-savvy, as there are accounting apps that are specifically designed to be easy to use, with simple features that promise to make bookkeeping a breeze.