It’s time to weigh your expenses over your income. You open up your spreadsheet and start typing in numbers. You watch as the net profit dips and climbs with each data input. And the whole time, you’re not sure you’re doing any of it right.
Why should small business accounting be a roadblock on the path to growth and success? If you’re feeling stuck, check out these three accounting tips.
Track All Your Expenses
It may seem like common sense to keep track of all your expenses, but it is easy for small purchases to slip between the cracks. If you don’t have a system in place for regularly updating your expenses, you put yourself at an even greater risk of missing items. Tracking expenses is an essential accounting practice, and there are programs that you can use to help you along the way.
Setting up an automated expense tracker is one way to help you keep on top of things. Another piece of accounting advice would be to take pictures of all your receipts and save them to a folder on your computer or, better yet, to the cloud.
Follow Up With Clients
One thing you do not want to lose track of is payment. As far as accounting tips for small businesses go, this one is key. As you’re gaining new clients, you want to make sure you’re not losing sight of the details.
You may have already recorded pending payments in your accounts receivable. But until that money is actually in your bank account, you haven’t actually received it. Don’t make the mistake of letting payments come in late or forgetting to follow-up. If your clients haven’t paid you yet, you really shouldn’t put the amount down as having been received.
Setting a standard of practice with clients from the start is a sure-fire way to maintain good bookkeeping. They’ll have a clear payment deadline to work with, and you’ll be paid on time and consistently.
Determine Whether You’ll Use Software or Outsource
Sometimes, it makes sense to go through all your books yourself. You may have the bandwidth to do so, or you may have a strong background in accounting. But you may not! If you aren’t confident in your own accounting skills, using a software program like quickbooks enterprise 2019 can help.
One of the big decisions you’ll need to make is whether you want to use a program or whether you want to outsource your accounting. There are plenty of companies who can help you keep your books in order. It’s up to you to determine which way you want to go.
Other Accounting Tips
How to do accounting for small business doesn’t have to give you a headache. With these three tips, you’ll be able to set yourself up for success. Accounting is a crucial part of running a business and helping it grow. Be sure to continue your research and find the systems that will work best for you and your company. If you have any questions, we are always here to help!