Nearly every new business owner takes care of their own bookkeeping tasks as they’re first starting out. However, small business bookkeeping tasks can add up quickly if they’re not dealt with properly and promptly.
Our team at Goodson & Taylors CPAs knows that small business bookkeeping isn’t always as straightforward as it sounds. In this article, we’ll share some of our top bookkeeping tips for new entrepreneurs to set them up for ongoing success.
The most important thing to do after you launch your business is to separate your personal and business accounts. For instance, you should not be using your personal credit card to purchase supplies for your business. As soon as possible, you should set up a business bank account and take great care not to overlap your business and personal finances.
After you take this essential first step, here’s what you can do to create an organized small business bookkeeping system that will be able to scale as your business grows:
- Use a payroll service. Paying yourself and your employees or contractors can eat up a lot of your time when you’re trying to expand a fledgling business. There are plenty of payroll management software options available, or you can outsource this task to a professional.
- Set up accounting software. Depending on the size of your business, accounting software can greatly simplify your life and remove several time-consuming bookkeeping tasks. However, since not all software is very user-friendly, you may want to hire someone to set up your software for you.
- Utilize accounting reports. Many accounting software options on the market today offer reporting features that can provide you with fresh insights into your business. You’ll also be able to rely on these reports for creating quarterly budgets.
If you’d like more small business bookkeeping tips, give us a call today!