Did you know that there are over 30 million small businesses in the U.S? And economic experts believe that more small businesses will emerge as the economy continues to recover from the COVID-19 pandemic.
Are you a small business owner? If so, you’ll need to ensure that you have all the small business tools you need to keep your business running. That’s why today, we’re going to give some expert bookkeeping tips that’ll turn your small business into an efficient money-making machine!
5 Helpful Small Business Bookkeeping Tips
Find a Good Accountant
Small business bookkeeping may seem easy, but in reality, it takes time and knowledge to do well. So, instead of doing your business accounting, you should think about hiring an accounting company. They have the tools and expertise needed to keep track of your finances.
Some accounting companies even offer fractional CFO services, which means you’ll save a lot of money by not having to hire an on-staff CFO.
Start to Digitize Your Accounts
One of the best accounting tips you can follow is using accounting software to manage your finances. Here are some of the best ones to use:
- QuickBooks
- Xero
- FreshBooks
- Wave
Of course, accounting software takes time to master, so be patient while learning how to use it. But, once you do master it, you’ll be doing your business finances at a press of a button!
Don’t Mix Business With Your Personal Finances
Many business owners mistakenly mix their business and personal finances, which creates a mess of paperwork. That’s why a good bookkeeping tip to follow is to have two different accounts: one for your business expenses and one for your own expenses.
Keep a Daily Record
Nothing is worse than trying to gather up all of the monthly expenses only to find you’re missing some. That’s why you should always try to write down what you spend each day. And if using a pencil and paper is not your thing, you could always use a business accounting app that keeps all your expenses saved.
Don’t Forget About Your Year-End Taxes
Some business owners get so distracted with their daily and monthly expenses that they forget to set aside money for the year-end taxes. So a good tip to follow is to set aside a small percentage of income every month so that when the year-end taxes are due, you have plenty of money to pay it off.
Follow These Bookkeeping Tips Today
Hopefully, by following these bookkeeping tips, you’ll be able to manage your accounts without breaking a sweat. But, of course, as mentioned before, you could always have someone do it for you, which means more time for you to dedicate to other business-related matters. So, don’t wait any longer and start improving your small business finances today!
What other bookkeeping tips do you know? Let us know down in the comment area. And if you want to read more articles that will help you run a successful business, be sure to check out our other topics!