Accounting Tips: 5 Things You Wish You’d Known Earlier
Every successful business needs accurate and effective business accounting practices. It pays huge dividends to have an excellent system to record your business’ finances as it grows. With tidy books, business owners are better able to forecast performance, keep track of the health of the business, review revenues and expenses, and get through the tax season unscathed.
Here are our top five tips to help you get your bookkeeping in order:
Track Every Expense
Tracking your weekly and monthly business expenses ensures you always have up-to-date financial information available. It will show you where you’re spending your money and where you can cut costs.
Separate Business and Personal Expenses
Separating the two types of transaction makes it easier for you to track and organize your budget and spending, both in your personal life and in your business. A dedicated business bank account for cash and savings saves you hours when it is time to tally up deductible business expenses.
Create Financial Projections
Using financial projections and reports like a common size analysis or a general profit and loss statement, you can estimate where your company will be next year and even two or three years down the road. Financial projections can help you figure out where to invest business revenue and if and when you should apply for a business loan.
Automate with Accounting Software
Accounting software makes accounting faster, more accurate, and far more productive by tracking your income and expenditures, categorising them, sending and paying invoices, and generating reports. Believe us – the DSS accounting professionals rely on accounting software tools all day, every day!
Consider Hiring a Professional, Even If Temporarily
Hiring a professional bookkeeper or accountant, even for just a few hours per month, can make a big difference. A professional will keep your records up to date and orderly, and a pro is better equipped to know about fees and loopholes, or additional tax deductions for which you might be eligible.
Losing track of your finances is a major reason businesses under-perform. If you get your accounting practices sorted, you’ll help keep your business secure and will have the data you need to develop successful strategies.