Accounting Tips that Protect Small Business Owners
Accounting is one essential activity entrepreneurs and small business owners find both tedious and daunting. However, doing it right is key to maintaining a healthy business.
According to an article by Hassan Sultan in YFS Magazine,
Accounting is much more than tax compliance; it helps you run your business smoother.”
Five Accounting Tips for Small Business Owners:
1) Set your monthly accounting goals. To accomplish this, maintain coherent records of your accounts payables and accounts receivables.
For example, implement a monthly schedule that alerts you to customers with aging accounts receivables. Based on this data, these customers will receive a call or email to ensure timely collections. This helps maintain a steady cash flow.
2) Keep on top of your inventory and cash on hand. You can ensure that your revenues and expenses show up properly in your P&L by closing your books on time and reconciling all discrepancies regularly.
3) Make use of the Cloud. There are great cloud-based bookkeeping systems to help you implement and maintain best accounting practices. Be sure the service you choose covers your specific needs such as invoicing, billing, time tracking, payroll, etc.
4) Another hassle free option? Hire an outside accounting firm to handle your books. In the long run, this can save time, money and potential frustration. According to Sultan, engaging a firm will cost you less than hiring an in-house bookkeeper.
5) Proper accounting practices are the backbone of a successful business. Timely and accurate financial data can provide business insights, help to shape strategic initiatives and ensure that you are in compliance with tax laws. An added perk is the opportunity to deduct all business expenses.
To read the original article in its entirety, please visit YFS Magazine.