Growing Your Business

Get Your Accounting in Order

by
Bob Mason
on
2/11/2019
Get Your Accounting in Order

As a small business owner, chances are you are more focused on growing your business than on keeping your business' accounting up to date. After all, without growing revenue within your business, there won't be any accounting to do. However, it is absolutely imperative that you keep the accounting of your small business in order. Doing so will save you time, money, and hassle down the line. Moreover, it's just a good habit to get into, as the accounting needs of your business grow alongside your company.

These are five tips that you can use to get your small business accounting in order:

Keep things simple

When first starting out, don't make things more complicated than they need to be. This can be everything from choosing a simple business structure (i.e. choosing a sole proprietorship or LLC over an S or C corporation) to the level of detail in your accounting records. The goal should be to record information and do work that is necessary to focus on your core business.

Identify tax write-offs and track them

Tax write-offs are one of the best ways to reduce what is likely to be your biggest expense: taxes. By identifying which items can be written off in your taxes, you can have a better understanding of your estimated tax burden. You can also work to maximize those write-offs as part of your business plan.

Keep personal and business finances separate

It can be tempting, particularly early on, to use one account for both your personal and business finances This is particularly the case for sole proprietorships. The reality is that doing this will cause needless complications down the line, particularly when it comes to reporting taxes. Keeping your personal and business expenses separate also makes it easier for you to track the actual profitability of your business, instead of having it intermingled with your personal finances

Keep good records

Keeping good records right from the start is crucial to keeping your business' accounting in order. By tracking items early on, you'll already have the best practices needed as your company grows. One of the best ways to keep records is to utilize a cloud-based accounting platform. While there are several reputable platforms to choose from, ultimately it's important to find one that fits your company's needs and your budget.

It's also important to understand when your time is better spent on things other than accounting. In the very early days of a business, it might make more sense to take care of your accounting yourself. However, as the company grows, and the complexity of your accounting grows with it, you'll have even less time to dedicate to keeping your business' accounting in order.

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Bob Mason

Bob Mason

Bob Mason is the founder of Coast Financial Services Inc. servicing both the Santa Cruz, and San Jose areas. Bob Mason is a skilled financial professional who is fully equipped to assist any of your accounting needs. Founding his firm in Santa Cruz, Bob understands the importance of small businesses and how they form the backbone of the area. Coast Financial Services, Inc. has been dedicated to the growth and profitability of businesses in Santa Cruz for 17 years. To learn more about Bob Mason and the rest of his team, visit their website.

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