Accounting Practices that Will Save Your Business Money
When you’re running a small business, every penny counts, especially as you’re getting off the ground. By making the right decisions, you can spend money where it counts most, getting the kinds of returns that will ensure your business goes the distance.
Accurate and timely bookkeeping is the secret to success for businesses large and small, new and established. Starting off with intelligent bookkeeping from the get-go, and keeping it as a priority as your business matures will save you a lot of headache and heartache, and give you the foundation you need to succeed.
Keep Business and Personal Accounts Separate
Even with the best of intentions, it becomes easy to lose track of where personal expenses end and business expenses begin, especially in the early days of your business. Keeping two separate bank accounts from the start will make life much less complicated. Make sure your business account has both checking and a dedicated credit card. With all the expenses in one place, you won’t waste precious time trying to figure out what goes where. You can also take advantage of rewards or cash back to put toward your business.
Prepare for Taxes Year-Round
Business tax preparation should be an ongoing priority. When you’re running a business, you don’t want surprises. And if you wait until the last minute to prepare for your taxes, that’s exactly what you’re going to get. Tracking, labeling, and categorizing expenses diligently throughout the year will save you from making unwanted errors, and help you take advantage of tax write-offs and credits.
Plan for Major Expenses
To run your business well, you need to keep an eye on the future, and that includes major expenses. Whether it’s an expensive system upgrade, new hardware, or tax deadlines, you should be preparing for major expenses well before they come due. Set aside money accordingly, and maintain an accurate understanding of the money you actually have versus what’s already earmarked for spending.
Set Time Aside to Handle Your Finances
The problem with ever-present tasks like bookkeeping is that they have a way of being put off. “I’ll take care of it next week” turns into “I’ll get to it next month,” and then all of a sudden you arrive at “Oh no, I can’t believe I didn’t do this!” To avoid the panic that comes from falling behind on your bookkeeping, schedule time each week to dedicate to your finances. Not only will this help you avoid making mistakes, it will also save time, as you won’t have to rack your brain trying to remember what that pile of six-month-old receipts was for.
Invest in Bookkeeping
A good investment provides tangible returns on the money you put in. If all of this advice is making your head spin, skilled bookkeeping services might be a sound investment. You’ll gain peace of mind knowing that your records are up-to-date and orderly. Free from the often tedious responsibility of bookkeeping, you’ll be able to invest your own time more wisely. And that’s not all. A knowledgeable bookkeeper can help you plan for potential fees, and take advantage of loopholes, deductions, and tax advantages that you may otherwise miss. An investment in bookkeeping services pays dividends you can take to the bank.
Contact Steiner Business Solutions in Richmond, VA for your small business bookkeeping needs.