4 Simple Tips For Effective Small Business Bookkeeping
Most small business owners carry the burden of wearing too many hats. Through out the day this can become a burdensome task, which often leaves items like bookkeeping for last, or to only be addressed come tax time. Leaving such a fundamental aspect of your business in the rear-view mirror can be a massive financial misstep costing you way more time and money than need be.
Listed below are 4 simple tips to keep your company’s bookkeeping on track.
1. Separate Personal From Business
Combining personal and business finances is one of the most common mistakes small business owners make. Not only does this complicate tax time, but it creates a costly, and time-consuming bookkeeping nightmare. For ease of mind, set up a business checking account for your company. This saves you the time and energy put towards sifting through each expense to see if it is business related or not. It also helps to sign up for a business credit card, not only for streamlining expense allocation, but it also helps your business credit grow!
2. Keep An Eye On Tax Deadlines
Staying on top of tax deadlines allows you to plan accordingly – instead of being caught off guard and potentially having to scrounge up money last-minute. The IRS Tax Calendar allows you to view all relevant dates for estimating quarterly payments, and even allows you to import the dates to your personal calendar, or sign up to set email reminders two weeks before their due date.
3. Join The Cloud
Spreadsheets and reconciling manually are a thing of the past! With cloud-based accounting software you can link directly with your bank account(s) and credit card(s) to view accurate transactions in realtime. These platforms also allow you to accept digital payments, manage contractors, pay bills, view important business analytics, and offer a secure place to store your data.
4. Ask An Expert
If you don’t have a designated employee dealing with day-to-day bookkeeping, or you feel you are falling behind on your bookkeeping needs, the sooner you ask an expert for help the better. The benefit of using a cloud-based software is (once invited), an expert can view your books and offer help at a fraction of the cost of traditional bookkeepers.
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