Top 5 Bookkeeping Tips for Small Businesses
Are you struggling with small business bookkeeping?
Bookkeeping is no easy task for a small business owner. Even if you’re a numbers person with an accounting background, maintaining the books for your business takes a lot of time and effort. Extra time is one thing that many business owners do not have.
However, you must be bookkeeping properly so you avoid costly tax mistakes. Making small errors can cost your small business a lot of money.
The good news is that you can do some things to make bookkeeping easier for yourself and avoid costly mistakes. Here are five great bookkeeping tips that will help you stay organized and make the process less of a headache:
1. Keep Yourself Organized
Keeping your finances organized is crucial. Once you start losing track of business expenses, employee timesheets, or tax deadlines, it’ll be tough to get things in order again.
Start by keeping detailed records of business expenses as well as all of your receipts. This will help you determine what you can deduct during tax season. If you have employees, you’ll also need to make sure you keep track of their time, overtime, paid time off, and any other benefits that impact payroll.
You should also set deadlines and reminders for yourself so you don’t miss any payroll dates or tax days.
2. Invest In Technology
One of the easiest ways to save yourself time is to automate your bookkeeping process where possible. There are plenty of online bookkeeper tools out there that will help you track your business expenses and run payroll automatically.
3. Get Professional Help
If bookkeeping becomes too much of a hassle, you can always hire a professional accountant to keep track of your finances and file your taxes for you. This might seem like it’s out of your budget, but even an occasional meeting with an accountant help you catch mistakes and take advantage of all the tax breaks you receive as a business owner.
4. Conduct Regular Reviews
Bookkeeping can begin to feel so routine that you forget to check in with your business finances and see how you’re doing or check for areas of improvement. Make sure you conduct regular reviews, at least every quarter, so you know where your business stands financially.
5. Separate Your Personal Finances
Many small business owners make the mistake of combining their personal and business finances, but this can get messy during tax season.
As a company owner, your first step should be to open a business bank account and a business credit card so you can separate all business expenses from your personal ones.
Learn More Helpful Bookkeeping Tips
Bookkeeping is a major pain for many small business owners, but maintaining books properly is one of the most important elements of a successful company.
Keeping messy books can lead to sloppy tax errors, which costs small businesses a lot of money. Set yourself up for success by following the five tips we discussed above.
If you’d like more bookkeeping tips, tax information, or other advice about running a company, make sure you check out the rest of our website.