Accounting Tips For Small Business Owners
As a small business owner you wear alllll the hats! Whether or not you take on the accounting tasks for your small business is up to you. There is no right or wrong answer as to how much you want to do yourself. You may use a really good accounting software and you may be a great manager of your own books. However, it is still good to hire a professional for certain aspects of your accounting. If something is being done wrong or is incorrect…who will be there to help you catch it or fix it before it becomes a problem?
Before we go over any terms or tips for keeping things straight, we want to let you know what a CPA is: A Certified Public Accountant (CPA) is an accounting professional who has passed the Uniform CPA examination and has also met additional state certification and experience requirements.
Here at Numerico, we can handle every single part of your bookkeeping or we can handle only what you don’t know how to do. Maybe we handle your taxes, tax planning and check in with you now and again. Or maybe we handle your taxes only, but also consult with you and be available for questions and recommendations.
Terms To Know For Small Business Bookkeeping & Accounting
- A sale is a transaction you receive cash for
- An expense is something you pay for, like toilet paper or pens
- Revenue is income to your company…such as sales of goods or collection of bills for service (such as landscaping)
- A small business loan is a liability, it is something you owe money on
- Accounts receivable refer to the money your customers owe you but have not paid yet
- Items, such a furniture or computers that your business owns are assets
Documents To Keep (and Scanning Them Digitally Is A Great Idea As Well)!
- Customer Invoices
- Customer Payments
- Sales Receipts
- Deposit Slips
- Bank Statements
- Credit Card Statements
- Receipts
- Bills
- Tax Returns
- Payroll Reports & Documentation
Make sure to keep these items well organized. If you choose to scan them digitally, make sure to store them properly. They should be password protected and backed up for future use. In my opinion, you can’t really go overboard with keeping this organized. Nothing makes me feel better than being able to find something from 3 years ago quickly and simply!
Some Miscellaneous Accounting Tips
- Separate personal and business expenses no matter what
- Keep your records, receipts and invoices separate as well
- Keep track of each and every business expense…it may be easy for some items to slip through the cracks, but your profit and loss statement will not be accurate if you do so.
- Sending out invoices doesn’t mean cash in your hand…stay on top of invoicing and billing
- Do not put off your “accounting” until it piles up…set aside designated time for it on a daily, weekly and monthly basis
- Do NOT be afraid to ask for help!
Need Some Help?
Don’t hesitate to contact us! We can help you set things up initially and walk you through any of the difficult decisions. Popular accounting software often has support for technical issues, but won’t weigh in on important decisions you are making. You can trust us at Numerico to lead you in the right direction and serve you to the best of our ability!
