As a small business owner, it’s likely you wear a lot of hats. From marketing to managing employees to sourcing products, there’s a lot of tasks to oversee. So where does that leave your bookkeeping? Properly maintaining a record of your business’s expenses is vital to both day to day operations and its long-term longevity. Every single one of those numbers is crucial and even one small mistake could spiral into a much bigger problem.
Proper bookkeeping and accounting is important because they serve as barometers for your business’s success. Fortunately, small business bookkeeping doesn’t need to be something you dread. It’s often the smallest changes in how you approach bookkeeping that can make all the difference for improving accuracy and reducing headaches.
Ready to streamline your bookkeeping process and gain a clearer view of your business’s financial health? Here are five small business bookkeeping tips for getting the job done.
Be Meticulous with Invoicing
As a small business owner, you’re wearing a lot of different hats and it can feel as though your attention is constantly being pulled in several different directions. With so much going on, it’s easy to become a little lazy when it comes to keeping up with your invoices.
If there’s one thing you make a priority for bookkeeping, it should be to become meticulous with invoice tracking and record keeping. Take 15 minutes each day to update invoices and make sure all accounts reflect current activity.
Separation Is Important
A mistake that too many new small businesses make is lumping all of their funds into one account. There are so many moving parts to small business finances that it’s important to separate these components as soon as possible.
For instance, separate out personal finances and business finances, even if you’re a sole proprietor with a relatively small operation. You’ll also want to separate income that comes from different sources – for example, incoming funds from paying clients versus funds that come from loans.
Keep Your Head in the Clouds
Cloud accounting software can make your life so much easier. Cloud accounting software can make it easy to capture financial information, store it for easy access, and gain a big-picture perspective of your business’s financial health for future growth and investments.
Don’t Put Off Taxes
Tax season is notorious for sending small business owners over the brink of frustration. Small business taxes can be complicated but the sooner you prepare for them, the less of a challenge they’ll be. Prepare early by understanding your tax requirements, anticipated payments, tax-related payroll obligations, and marking important tax deadlines on your calendar.
Hiring a Bookkeeping Professional
There are endless complexities to small business accounting. If you’d like to save yourself the stress and headaches, there are professionals who can provide you with business solutions, including bookkeeping for small businesses.
At Steiner Business Solutions, we offer a range of services for small businesses in Wilmington, NC and Richmond, VA. Our services include bookkeeping, accounting, tax preparation and more. Let us take care of the numbers while you tend to the other important aspects of running a successful business. Contact Steiner Business Solutions today to learn more.