As a small business owner, you will likely complete many accounting processes independently. Undoubtedly, this is stressful, and sometimes you may need support to ensure you undertake your business’s accounting & bookkeeping correctly. Below, we will take you through five essential accounting tips all small business owners should be aware of;
Keep Business and Personal Finances Separate
While it may sound appealing to have all your finances in one account, combining your personal and business finances can cause many organisational issues.
Instead, we recommend having a business account that only holds the financial transactions concerning your company. A separate account for these transactions makes bookkeeping, paying taxes, creating financial statements, and finding specific payments much easier.
Ensure Records are Accurate Through Proactive Management
Recording financial information is essential and should be done as accurately & timely as possible. You can achieve this by reporting financial transactions as they occur and having organised accounts that are easy to follow and track using accounting software such as Xero.
Complete Financial Statements
Understanding your company’s financial health will help you project business growth and acknowledge any areas for improvement. Maintaining up to date financial statements is an excellent way to track economic trends and understand your cash flow.
Understand Taxes and Timeframes
The last thing you want is to miss a tax deadline or inaccurately calculate your tax. To ensure this doesn’t occur, note when your tax is due, and keep your financial statements updated throughout the year. This way, you will have a clear idea of your tax obligations with the assistance of our firm as your accountant & business advisor. It is important to ensure you work closely with your accountant and bookkeeper to achieve this.
Use Accounting Software and Support
There are many things to consider when completing record keeping as a small business owner. To ease your way into these processes, using accounting software that tracks your financial data and simplifies organisation and accounting management will be helpful.
Still Trying to Figure Out Where to Start with Accounting for your Small Business? We Can Help
If you require support in relation to your small business’s financial management activities, don’t worry, we can help. Get in touch with our skilled accountants at Glance Consultants today to find out more.
