Managing your business finances

Simple Accounting Tips

The tax period can be considered the busiest time of the year for businesses, where simple mistakes can lead to costly consequences — including missed refunds, incorrect data collection, and missing invoices. Unfortunately, this could affect your income statement, revenue projects, and P&L, which could be financially viable which could lead to IRS investigations and sanctions.

Keep in mind that as your business grows, managing a difficult job like bookkeeping can be even more difficult. It is a difficult challenge, but one that requires your attention. With adequate preparation and knowledge, you will be able to save money, time, and chronic headaches.

Here’s how to optimize your bookkeeping procedures:

Tip # 1: Make sure you keep your personal and business finances separate

Your business is a different business than your finances, even if you are currently operating within your own home. You will need to keep things separate, as failure to do so can lead to a costly and complex problem that will be difficult to resolve. With so many invoices to deal with, it is almost impossible to see if your brunch is a business expense or a personal one.

To help ensure that such discrepancies do not occur, your credit card should not be used for anything related to work. Similarly, your business credit card should not be used for anything personal. If this happens by accident, however, make sure you are aware of it by writing it down on your ledgers. It may also be helpful to have a receipt in hand, so that it can be copied in good measure.

Tip # 2: Track all the costs of your business

Whether you bought an extra box of paper clips or need another laptop for a new employee, it is important to keep a record of all purchases, including credit card payments. This should include your cash payments, deposits, credit card debt, and even check payments — all recorded in a well-written book.

It is also important to keep things recorded digitally, either through a spreadsheet or software. All invoices and receipts must also be kept in a single file, with notes and details attached for easy identification and reference. You will probably need this information during tax time — it is best to prepare as soon as possible!

Tip # 3: Accept the power of technology

Today’s digital world has opened the way for new tools and innovations, including the construction of financial platforms that help simplify repetitive tasks. Small businesses can now save both time and money with the help of good investment, as they are guaranteed to reduce costs effectively and improve efficiency in more than one way.

Managed by skilled accountants, you will have the means to make an analysis of a business plan that would otherwise be difficult to have. They will also release the data carefully to provide details and recommendations, all designed to help improve your main line. Simply put, you will have the power to dictate the future of your business!

Bottom Line

A small business owner is expected to provide countless hats, which are essential for a successful business. You will need to manage all aspects of your business, but details should always be left in the hands of professionals — especially when it comes to your finances. The tips listed above are designed to help you succeed in the long run, but remember that they all need the help of an important factor — a good accountant!

With Triple, you are covered. We do the best possible to keep your processes running smoothly, ensuring that everything is kept up to date, manageable and, above all, efficient. Let’s talk today to learn more.

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