5 ESSENTIAL Accounting Tips For Small Business

We’ve all heard many times that finances are the bread and butter of every business.

This means that if you don’t have the proper skills to manage your business debts, receivable management, and marketing expenses, you’ll definitely make a lot of mistakes that will subject your company into a substantial financial mishap.

Here are five accounting tips to help grow your business

1. Keep Your Personal and Business Finances Separate

Mixing your personal and business finances is a recipe for disaster. It makes the process of running your business extremely difficult, especially when it comes to tracking the cash flow, calculation of profits, and filing of tax returns.

As a small business owner, it’s vital to open a bank account with the name of your business before starting a new company.

2. Keep All the Sales Slips

Nowadays purchases are made electronically, but this doesn’t mean that receipts are no longer critical. Sales slips have useful details for future reference such as dates and costs.

This kind of information helps to make things much more manageable when tax filing season kicks off. However, experts recommend that purchase receipts should not be kept in a single folder, but they need to be maintained based on their category.

3. Hire a Tax Accountant

Many small businesses operate under a tight budget and most of the time they are reluctant to seek accounting help. But the reality is, recruiting a part-time or full-time tax accountant to help your business to accumulate profits in the long run.

The right accountants near you can do much more than preparing your yearly taxes. The right person can help with advice on management decisions, growing the business, payroll management, even personal investments.

4. Maintain Neat and Accurate Accounts

Naturally, every individual is unique, and we all possess different personalities. Some people are organized while others are untidy, but this is a normal aspect of being human and acceptable in our personal lives. When it comes to entrepreneurship and bookkeeping, untidiness can have a severely detrimental implication to the business.

So it’s absolutely essential to ensure that vital details such as dates purchased, stock numbers, purchase prices, and many more are organized and recorded accurately.

5. Be On Top of Tax Filing Deadlines

Missing tax deadline is a big blow to a small business as it results in large fines and other penalty related costs such as more accounting hours. As an entrepreneur, be aware of tax deadlines and make sure you stick to them.

Ensure that tax forms are filled correctly and send your tax returns in time to avoid any charges.

The Bottom Line Is…

Finances are the backbone of any business. With that being said, it is essential to manage them well in order to achieve your business goals.

To know more, kindly contact our client handling team at accounts@rayvat.com.