Are you struggling with accounting or other financial management matters? You’re not alone. Finance management is one of the top challenges of many small business owners across the country.
Accounting is a significant stressor for some, especially when you’re doing it on your own. But it doesn’t have to be complicated. With the right tools and strategies, you could easily understand accounting and develop a process that would work for you.
Here are some tips to get you started with small business accounting.
1. Have a separate account for your business
A separate bank account ensures your personal money and company money don’t mix. Additionally, it prevents you from using your business money or revenue for personal expenses. Doing so could throw off your cash flow and budget.
2. Track your income and expenses
As they say, “you can’t manage what you don’t measure.” Tracking your cash flow helps you make informed financial decisions for your business. It also gives you an idea of your company’s performance and financial situation.
Make sure to keep receipts, label them accordingly, and store financial records properly.
3. Choose a reliable bookkeeping system
You don’t need to invest in a costly bookkeeping system. The most important thing is to have a bookkeeping system that has the features you need to record and organise business transactions.
If you’d rather do it yourself, consider using a spreadsheet to record transactions. If you need additional functionalities to manage your business better, consider Cloud accounting solutions like MYOB and Xero. These applications come with a variety of features, such as intelligent banking, invoice generator, and one-click financial report creation.
4. Settle payables and taxes on time
Penalty fees could significantly affect your cash flow. Make sure to control your bills by paying them on time. Cloud accounting solutions help you manage them by showing you what you owe and when payments are due. You could also set up recurring bills you won’t have to set them up in your accounts every time that you’re going to send out payments.
5. Consult Experts
Not sure how to go about your taxes? Worried that you’re not managing your cash flow correctly? Ask help from experts so you could avoid oversights and costly mistakes.
At Sutherland Reid & Farrar we’ll help make sure that your business is compliant with all applicable statutory obligations. We could also assist in preparing financial statements and review your accounting process.
Accounting doesn’t have to get in the way of your success. In fact, it could help you identify opportunities that could lead to the growth and expansion of your business.
Sutherland Reid & Farrar offers services for small businesses, including accounting and taxation, bookkeeping, budgeting, cash flow forecasting, and more. If you need help with your accounting process, fill out our contact form or call us at 02 6752 9700 to schedule an appointment.