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Monday, December 30, 2013

5 Accounting tips for small businesses

Running a business successfully is not an easy thing to do. One of the key things you need to look after as a business owner is the finances of your business.

This isn’t a small task and business accounting takes a big part of your daily activities. To help you out here are five tips to ensure you are making the most out of your accounting.

1. Keep it separated

Account tips
Keep personal and business financial records separate
If you are a small business owner or even a freelancer then the key thing to keep in mind is that you need to keep these two separate.

The biggest mistake you can make is to mix your finances and forget to treat them separately. This can even end up costing you money in the long run.
So as soon as you start working on your own or set up a small business then you need to separate the accounts.

Having two simple bank accounts for your personal and business needs is really essential thing to do.

2. Use technology

Technology can really help small business owners manage their finances better. The different budgeting and accounting programmes can really enhance your finances. You can find out more about some of the best financial programmes you could consider in this Techradar article, for example.

3. Get organised early on

It is really important that you get your finances in order as soon as you set up your business. Even if you don’t have many financial transactions at the start it will help you deal with them better once you do get more work.

Organising your files and keeping impeccable records from an early on will really help you deal with the situation better once you do get more business.

Make sure you also prepare in time for filing your taxes. Try to get into the habit of sending them on time and without having to spend sleepless nights before the big day. It is much easier to learn this all when your business is still relatively small rather than wait for the point when it grows.

4. Hire a professional

You should also really consider hiring a professional to help you with your accounting. This is really going to allow you to focus on the most essential part of your business. It will also help you make the right decisions with your finances and can help you ensure you make as much profit as possible.

Getting a professional accounting company to help you out isn’t even as expensive as you might think. There are plenty of organised cheap accountants that can help you get a good value for money.

5. Consider going digital

It is also a really good idea to consider taking your bookkeeping into the digital world. There are so many benefits of going paperless and it can really help you manage your accounts better as well.

Having your accounting digital allows you to access the information from wherever. It can even help make the checking of errors a lot easier. Digital versions of bookkeeping are now widely accepted by the authorities and therefore this is something you should keep in mind. 

About the author: John is into finances and he is always reading new articles in order to find out more about accounting. When he isn't thinking about numbers he likes to spend time visiting art galleries across the country.

Image license: Ken Teegardin, Creative Commons

1 comment:

  1. Hear, hear! I couldn’t agree more! It’s a tedious and tough work to do accounting but in the end it will be good your business.