Small business owners are often swamped with daily tasks that never seem to stop piling up. When you are starting out, managing your businesses finances can seem like a daunting task.
If you don’t have processes and a system in place, certain issues will begin to follow you. You may easily overlook goals and important paperwork, or perhaps miss key transactions. No matter how easy it may be to keep numbers in your mind, better financial management will help you achieve your long-term goals.
Unless you’re an accountant, the very thought of bookkeeping may strike fear in your heart. It may induce a little bit of nervousness, or perhaps a little shake of your hands. As a new entrepreneur, bookkeeping may be downright terrifying.
Regardless of your business nature and status, we’re here to tell you that there is an easier way.
1 – Track all your expenses
Whether you’re tracking your expenses on a spreadsheet or using an accounting software, every purchase relating to your business must be recorded accordingly.
These expenses can later be used as tax deductions, but proper documentation is necessary. Hold on to all the receipts and invoices, but make sure to keep a digital record of everything. When the tax season comes, you’ll be grateful for the updated records!
At Kinden CPA, we use an amazing tool called Receipt Bank that allows you to take a picture of your physical receipts, and invoices in your email, which then can quickly push them right over to Quickbooks to store them as expenses. It doesn’t get much easier than that!
2 – Draw a line between your personal and business transactions
You may own the business, but remember to be careful about the money flow. You have all the means to use the money as you wish, but going overboard is always a risk. If you’re at the early stages of your business journey, every penny counts.
To ensure that your expenses always remain within reasonable limits, create a separate checking account for your personal needs. A credit card can be assigned to your business expenses instead, to ensure that the lines always remain clear. If possible, create multiple business accounts to manage every aspect of your business expenses. One could be dedicated to suppliers, another for payroll purposes, and another for overhead expenses. This will vary depending on your needs, but ensuring that the lines are there will help you make better financial decisions.
If you are a sole proprietor, make sure you indeed have at least one business account setup, that is completely removed from your personal bank account. Trying to manage your grocery bills, your kid’s hockey fee’s in with your business expenses, could be a major headache for whoever has to itemize things when it comes tax time.
3 – Hire a bookkeeper
If managing numbers remain to be your biggest weakness, never hesitate to seek help. Running a new business is an incredibly exhausting process and being able to replace the tasks you aren’t proficient in, can end up being the best decision you can make.
While hiring an accountant may seem like another expense, but can they save you a lot of money in the long run. Remember that they have expert knowledge in cash flow and taxes, also allowing you to gain better insights on business growth and profitability opportunities. Growth is your main goal and if a bookkeeper helps you achieve that, what’s stopping you?
At Kinden Accounting & Advisory Services, we combine the expertise of a CPA and implement a cloud accounting process to simplify your bookkeeping needs. If costs are a concern, you should book a free discovery call with us and learn how our pricing is designed to help support small businesses, and not to drown you in outrageous fee’s.
The business landscape is a competitive game of wit and creativity, and as a new entrepreneur, you’ll need all the industry knowledge and skill you can get. The most important aspect of your business is the financial area, as this dictates your business’s growth and future.
Numbers may perhaps be an area you struggle with but never fear. By keeping your transactions in check and seeking professional help, you’re playing your cards right. Before long, you’ll witness your business soaring into new heights.
If you’re on the hunt for a bookkeeping service in Halifax, Kinden CPA is the place to call. As an online accounting firm, we’ll help your business grow in the best possible way—through innovation and technology. Reach out to us today!