Bookkeeping Basics: Small Business Accounting Tips for New Biz Owners

If you are a new business owner, it can be tough to keep track of all the elements that go into running your company. One area that people often forget about is bookkeeping.

It might seem like too much work for such a small task, but it actually saves time and money down the road if you take care of these tasks now rather than later.

In this blog post, we will provide some small business accounting tips on how to set up your books so they run smoothly.

Always Separate Personal and Business Expenses

Even after you have set up your accounting system, it is important to keep track of the money that goes into and out of business accounts.

One way to do this is by keeping a log or spreadsheet on which expenses are for personal use versus those that are considered part of doing business.

This will help ensure that everything you pay for gets reimbursed accordingly once tax season rolls around.

Track All Business Expenses for Tax Purposes

When it comes to tax time, you’ll want all expenses accounted for.

This includes items that are considered a luxury or personal in nature such as entertainment and travel costs.

Usually, this will be listed on your quarterly estimated taxes so it is important not only to keep track of these expenditures but also to make sure they get reimbursed by the company.

Don’t Forget About Receipts

Receipts can often seem like a tedious task since most accounting programs have them built-in already, but it’s always best to hold onto receipts until everything has been entered into the system.

That way if something gets overlooked there is still documentation of what was purchased during that period of time.

Record Your Total Income Accurately

One of the biggest mistakes that business owners make is not reporting all income.

If you are using cash, this can be especially challenging since there’s no way to account for every single transaction.

It is important to build in “buffer time” so you have enough time at year-end to track down any missing transactions and properly report them on your taxes.

Consider Hiring an Accountant

Even if you do a great job and follow all of the tips we’ve mentioned here, it might be in your best interest to hire an accountant.

They can help set up systems that will make things easier down the road when tax season rolls around so you don’t miss anything or have any discrepancies on your taxes.

There are many types of accountants who specialize in specific areas such as taxes, bookkeeping, etc., which means they’ll know exactly what to look for depending on what type of business you run or the industry that falls into.

This makes them indispensable since there is no way anyone could track this information without their expertise and knowledge about how these work within each field.

Interested in Learning More Small Business Accounting Tips?

As you can see, there are several small business accounting tips you should be aware of. To learn more about how to manage your company’s finances, continue reading our blog for more information.