Bradley Witham | Accounting Tips for Small Businesses

Accounting Tips for Small Businesses

Among the incredibly long list of to-do items that naturally occur from running your own small business lies the necessary task of accounting. As monotonous, irritating, or monotonous as this may be, it is critical to the success of any business that these records be managed appropriately and efficiently.

Here is a quick list of 7 tips accounting tips for small businesses to help you maintain your business better.

•Do Your Homework•Open an Account•Keep Track of All Expenses•Bookkeeping •Establish Payroll•Pay Taxes•Gross Margin

Do Your HomeworkWhether you are planning on starting a

business of your own or already have one

up and running, be sure to do your

research. It’s important to understand the

different tax forms, write-offs, laws or

licensing requirements that apply to your

business.

An awareness of these policies can help

protect and and stabilize your business in

the long run.

Open an AccountCreating a separate account for your

business makes it easier for you to keep

track of your business’s income and

simpler for you to do taxes. Start with a

simple checking account and add savings

accounts as is necessary.

Also consider the benefits of having a

business credit card to help you start

developing credit.

Keep Track of All ExpensesIt is critical to the maintenance of your accounts and

the success of your business that you collect and

track your expenses. This can be accomplished by

gathering receipts and recording payments. Even the

infrequent meal expenses or traveling costs need to

be documented and handled appropriately.

Failing to maintain these accounts can prevent you

from being able to build a reliable financial statement

or prepare trustworthy reports on your tax returns. It

also becomes difficult to monitor the expenses or

growth of your business.

Book keeping Accurate bookkeeping is necessary in order to compile clear and precise reports as well as determine how your business is doing. In that light, be sure to research your bookkeeping options thoroughly to ensure optimal maintenance of your accounts.

A DIY route requires tracking all of your expenses and meticulously documenting them in a spreadsheet. Then, it must be deciphered and interpreted to produce clear data and exact reports. For many business owners, this option simply asks too much of them, as they have limited time that should be spent on moving their business forward, rather than on tedious accounting work.

Another option is to simply outsource your bookkeeping and accounting. For those that already have too much on their plate, this is a valid consideration.

Establish PayrollWhether you have your own employees or

independent contractors, they all have to be

paid for their services. Abiding by a payroll

schedule and with holding the appropriate

taxes are also steps that can complicate

this process.

Our services can help you check this item

off your list so you and your employees can

move on to bigger and better things.

Pay TaxesWhile tax season is still relatively far away, it’s

important to understand the ramifications of tax

expenses, deductions, and payment plans when

organizing your business finances. The type of

business that you have will determine the kinds of

tax expenses you need to anticipate.

Keeping track of various tax requirements as well

as deductions that you can qualify for can be

difficult. Not only that, but filing taxes can be a

tedious process. Bradley Witham give services at

Your Balance Sheet can help you accurately fulfill

your tax requirements.

Gross MarginThe term “gross margin” simply refers to the difference

between the cost of the goods you sell subtracted from

the revenue that you generate from the sale of those

goods. This figure is a helpful determining factor to keep

your eye on as your business progresses forward in future

months and years.

However, in order to keep tabs on this figure, you must

have consistent and organized accounting practices

working in the background. At Your Balance Sheet, we’re

able to provide those services and provide you with

consistent reports so that you can see a snapshot of your

business at a moment’s notice. Our accounting tips for

small businesses can help you manage your business

better.

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