When running a small scale business there will be a flood of milestones to hit and manage. Accounting tasks should be top of your priority lists to have better confidence about your business growth.
Take into account the following tips to avoid running into any financial issues this new year.
Maintain and track daily transactions
Maintain a system that organizes receipts of daily transactions right from the beginning. Keeping track of daily transactions would help you better in managing larger accounts like monthly transactions and yearly transactions.
Maintain a petty cash documentation
Gain control over small expenses that happen without using your credit card for small items. Though it is petty, it will sum up to a bigger number and can sometimes cause an imbalance while in the final accounting. Tracking and documenting receipts of petty transactions help you monitor how much you spend and later with that number you can estimate your petty cash expenses for the future.
Create categories but never overdo
Practice maintaining a separate business and personal account, to never confuse the transactions done in it. Categorize your transactions like for revenues, expenses and credit statements but you don’t overdo it by categorizing fax and copy making expenses, etc. It will maze up when you grow your business.
Bookkeeping is a day-to-day process of categorizing accounts, recording transactions, and bank reconciliation. DIY bookkeeping in the initial stage can be easy and recommended but to be more effective, software like QuickBooks would be a better replacement for your spreadsheets.
Review bank statements
Biggest losses happen in small businesses due to unauthorized credit cards or check usage. Reviewing transactions through bank and credit card for authorization before uploading in bookkeeping will avoid such issues.
Set up a payroll system
Being a small business, you might have hired part-time employees or freelancers to work for you. Maintain a payroll system and segregate your employee wages transactions. Paying your part-time employees will also include taxes and American owners need to file 1099s at year-end for each contractor.
Growing small businesses may find it hard to handle accounting all by one hand and you may feel a little lost. Bookkeeping is an important chore for all businesses, do you need assistance for a better accounting service or just bookkeeping service. SmartFin can provide the assurance for a better accounting system with its experience in the accounting field for over accounting services now. It provides end-to-end accounting services based on your business needs. Drop a line to know more about our accounting features.