Between keeping up with your employees, tracking inventory and generally doing everything needed to keep your small business afloat in these trying times, keeping up with your accounts and books can be more than just a little challenging. However, there are a few things you can do to streamline the small business accounting process and make the entire ordeal more efficient than ever.
Separate Your Expenses
Instead of pulling business expenses and personal expenses from the same account, have a dedicated business bank account. This helps you separate out the costs more quickly.
Track Your Cash
Keep tabs on every single purchase you make on your business’s behalf throughout the year so you don’t miss out on tax write-offs or other benefits. Using a business credit card can make tracking expenses easier and helps speed up the small business accounting process.
Focus on Accuracy
It’s not enough just to write some numbers in your books and call it a day. You need to ensure that your facts and figures are accurate, including loans, sales revenue and all other sources of income you receive.
Fork Out the Cash for Help
While you’re doubtlessly always looking to save as much cash as possible within your business, it’s important to know when you need to pay for help. Paying a professional bookkeeper or accountant for just a few hours of their time throughout the course of the week or month can make a huge difference with your books.
Take the Time to Update
Time is forever in short supply for business owner, but be sure to map out an hour or two of time each week to update your current books so information doesn’t slide through the cracks.
Expect the Unexpected
Plan ahead to accommodate large, unexpected expenses. Machine failures, computer replacements and other costs always happen at the worst of times, so being prepared is a must.
Maintain Records
Protect your assets by keeping track of purchase dates and other pertinent details during small business accounting. This safeguards you from both theft and lost inventory.
Keep Tabs on Invoices
Unfortunately, when you send out an invoice, that doesn’t always mean that the recipient will remember to pay you. Follow up on your invoices and purchases by keeping tabs on them and avoid confusion in the budget later on.
Consider Labor Costs
You have to pay your employees, so adding this into the books is a must as well. It’s imperative that you also keep track of your own pay, overtime, bonuses and other details when it comes to mapping this information in your books.
Each of these steps goes a long way towards dealing with small business accounting easier than before and ensures you’re making the most of your cash flow.