Starting a small business is an exciting venture, but it comes with a lot of responsibilities, especially in managing your finances. Proper accounting is one of the most critical factors in your success. As a small business owner, understanding the fundamentals of accounting can save you time, money and stress as your business grows.
At Modern Ledger, our goal is to help support businesses so they can succeed in their industry. Here are some essential accounting tips that every small business owner should know, including practical advice to keep your finances in order to help avoid costly mistakes.
First, establish a separate bank account for your business. This is an important step in maintaining clear financial boundaries between your personal and business expenses. It simplifies your accounting process and protects you more, in case of an audit. It also ensures that you have a more accurate picture of your business’ financial health which makes tax filing and financial reporting much easier.
Second, use accounting software from day one. Account software (such as QuickBooks Online or Wave) allows you to automate many of the bookkeeping process; including tracking income, expenses & payroll. This not only saves you time but also reduces the risk of human error. As a bonus, most account software tools can generate detailed financial reports with just a few clicks. Accurate financial reports that you review consistently can help you make informed business decisions.
At Modern Ledger, we understand that tackling a quirky software takes time. We love to help empower small businesses to understand the complicated and robust process of QuickBooks Online. We offer personalized and custom training sessions if you’re not in a position to outsource your bookkeeping entirely yet. Helping you get all the benefits from accounting software is one of our goals; however, we also love taking this task off of your hands too. We offer full service bookkeeping to allow you more time to focus on what you really love – the craft you excel in that you turned into a business.
Finally, don’t forget about taxes. Throughout each year, it is essential to set aside a portion of your income for tax payments. Tax season always seems to creep up faster than we expect. Failing to budget for taxes could lead to a cash flow crisis when it’s time to pay. Consulting with an accountant early can help you understand your tax obligations and take advantage of tax deductions and credits available to you. Regular check-ins with a professional can help keep your finances on track and help to ensure you’re compliant with tax regulations.
Implementing these three tips can help save you time! We are available for appointments if you want to hear more ideas on how to get your bookkeeping in order. We offer a complimentary 30 minute consultation to explore how our services at Modern Ledger can help your business.
To book a consultation, simply head to our website:
We can’t wait to be a part of your business adventure!
