6 Accounting Tips for Small Business Owners
It's important for businesses of all sizes to keep their records accurate and up to date, this includes everything from expenses to sales. Whether you're managing your own books or employ someone who does it for you, as a business owner you need to be aware of exactly what goes on in your business account. Should the IRS wish to see your records, you will be held responsible for making sure they are accurate.
Managing your own books can be time consuming business, but if done right could save you time in the long-haul. So, here are some tips to help you boss bookkeeping.
Find software that works for you
Accounting software can be a great way of helping you keep on top of your books. They are designed to make running a business easier, therefore no accounting knowledge is needed. If you decide to opt for modern accounting software, it's worth searching for one that suits you and your business. For small business owners, we recommend something that is simple to use and time-effective, such as KashFlow, FreeAgent or Sage One Accounts. Test the software by signing up for free trials, this will help you find the most suitable option for your business.
Keep on top of tax
With there being so many complex tax rules to keep track of, it's good to know exactly when you are expected to file or pay them. If you are new to finance you probably don't know which taxes your company is obligated to pay. Common taxes for small businesses include VAT, Corporation tax, Self-assessment income tax, PAYE and Income tax rates. You must also present your financial records in the Annual accounts.
Know your deadline dates
Avoid unnecessary charges by knowing exactly when you need to pay your bills, file tax returns and pay taxes. Make a list of all the taxes and bills you need to pay and the due dates. You can schedule reminders on project management apps such as Trello or Basecamp, which will notify you before the deadline. You can also keep track of your bills and taxes on your accounting software.
Record everything
When we say everything, we mean everything. Remember to keep all of your receipts, from large purchases to small expense payments. By recording all of your expenses you will decrease your company profits and pay less tax on them.
Attend free workshops
HMRC orchestrate free workshops to help people understand finance. These classes range from introductions on VAT to discussions on self-employment. These workshops are worth attending and can provide you with the knowledge you need to grow your business.
Hire an accountant
An accountant could be a valuable asset to your company, with knowledge and expertise in finance, tax, money management, business and budgets. Hiring an accountant could take some of the responsibilities of taxes, payroll and bookkeeping off your hands. Some even offer consultancy services to lead businesses in the right direction and assist with decision making. They can also save you both time and money. So, is it time you called in the professionals?
