If you are a small business owner you know one of the most stressful aspects of running your business is keeping your accounting manageable. You may even be a little hesitant to take major steps to grow your business to it’s full potential because you are intimidated by the thought of accounting for a larger business. But rest assured, maintaining business accounting is possible both now, and as your business grows. What are the best practices to make accounting as easy as possible now, and as your business grows?

First of all, it is an absolute necessity to keep good records. Maintaining good records is more than merely keeping the receipts from all of your transactions. While that is a large part of good record keeping it is necessary to take things a step further to avoid panicking, particularly around tax season. Keep track of all of your expenses. Many business owners choose to make all purchases related to their business with a business credit card. This typically makes finding and keeping receipts in order easier than if the purchases were made with cash.

Accounting will also be easier if you remember to keep your business and personal finances completely separate from the start. If you begin by mingling your finances- using your personal credit card for business purchases or making business deposits into your personal account- you will find that your tax preparation will be a jumbled, frustrating mess. So it is a best practice to start, and keep, things separate from the start.

Many small business owners find that as their business grows they feel more comfortable with hiring a professional to manage their bookkeeping and business accounting. Even if you decide to hire a […]