If you’re running a small business, you’re probably wearing a lot of hats as it already is. You might find yourself scrubbing the bathroom sink when you should be focusing your energy on finding new customers. Some tasks, though, need to be delegated to a professional. When it comes to your business accounting, it’s not worth the time and stress for you to do it yourself, so be sure that you hire a qualified professional to do the job right. However, there are a number of things you can do to reduce your accounting expenses and to keep track of your bookkeeping and finances yourself. Here are a few ways to get your small business accounting in order.
- The first step and probably most important step to keeping on top of your small business finances is to get yourself a qualified and certified tax accountant. Ensure that your accountant is a CPA, which means Certified Public Accountant. In order for an accountant to become a CPA, they need to pass certain rigorous exams as well as background checks to ensure they are trustworthy and reliable accountants. Taking the pressure off of you is one of the most important aspects of keeping on top of your finances. The more you can rely on your accountant and delegate tasks to them, the more time you will have to focus on generating new business. It’s worth getting in touch with The Shealy Group. They specialize in a customizable service to suit your specific business needs. When it comes down to it, every small business needs a small business CPA.
- Before you hand all of your accounts and financial information over to a CPA, it’s extremely important to have them in some sort of order or you will be paying a lot of money for your accountants to sort through a lot of paper work. Save yourself the cash by labeling and categorizing every expense in order to track your cash flow. This will enable your tax accountant to not miss any potential write offs or credit.
- Save on paper and avoid all of those annoying receipts by using your business credit card wherever possible. It’s also a good idea to avoid sharing your business and personal accounts for money coming in and going out. This will mean you’ll be able to sort through them separately with no confusion about what is a business expense and what is a personal expense.
- If you want to keep track of all of your expenses and invoices, you’re going to want to set aside a few hours every week to go through all of the transactions on your business account. You also want to ensure that you’ve been paid from invoices sent out and that you’re actually turning a profit from all of your sales. Allocating a few hours a day to do this can save you enormously in the long run. Getting some basic bookkeeping software, such as M.Y.O.B., will help you stay on top of this without having to do all of the math and equations in your head.