So, you’ve started a business. Customers are calling. Business is growing. Everything is going great. However… with more business comes the need for more bookkeeping and accounting management. You’re finding yourself spending more and more time, as the days go on, on managing your finances and books. You’re getting pulled aside from what you do best to ensure your finances stay organized but this takes time. Feeling overwhelmed? Here are some helpful tips to keep your small business finances organized:
1. Chat with a CPA or Accounting Professional – Once your business is launched you should chat with a CPA so you know what kind of taxes you’re going to have to pay in the future. This way, there aren’t any surprises come tax time.
2. Separate Personal and Business Finances– This tip is critical, even though many small business owners may think it’s an obvious one.
- Use a business credit/debit card – It’s simple. Whenever you’re purchasing a business related product or service, use a separate business credit/debit card – it will make keeping track of business expenses so much easier.
- Open a business savings or checking account – It’s imperative to have a checking or savings account for business, separate from your personal and other accounts.
3. Decide on the business structure – A number of small businesses start as sole proprietorship but move to something bigger as they grow or gain momentum. This is something to consider as certain business structures shelter you from various financial risks and provide tax incentives.
4. Get an Employer Identification Number– This is a specific tax number that is like a SSN for the business.
5. Hire a Bookkeeper and Use a System (QuickBooks, of course!) to keep track– Using a qualified Bookkeeper to keep your books organized will make life easier for everyone. You’ll be able to keep an eye on where your money is coming and going in real-time. Not to mention, you’ll likely save on additional fees from your CPA as they will have organized records that won’t require more time on their end. It’s also recommended that a program like QuickBooks is used to track invoices, expenses and payments. QuickBooks Online is web-based so you can access it from any device with an internet connection and the reporting capabilities make Intuit QuickBooks the ideal accounting software solution.
There you have it! Some key tips in managing your small business finances. Feeling like you need help? Call us!