What happened to February?
We are jumping into March this week and tax season is around the corner. If you are like many small business owners, life happens so fast that it can be a ‘holy cow where did the time go’ moment. But where do you begin to get your business books in order?
- Do you do cash or accrual accounting? Cash accounting are transactions that are recorded when they happen. Accrual accounting can be better for reflecting change in accounts payable and receivable but can lead to cash flow problems.
- Keep your business and personal finances separate. Laws dictate they be separated in separate bank accounts, and it is much easier to differentiate when it comes to reporting your taxes.
- Choose a good accounting firm like Business Solutions by Design
or an accounting platform to help you manage your books. The benefit of a firm is you get hands-on experience as well as it gives you time to do the things you need to do. While an accounting app will be less costly and can help you be organized, you are still preforming all the tasks by yourself.
- Stay organized, no matter if you choose a company to work with or DIY it, set up a filing system that you are comfortable working with. Track everything carefully so when it is time to turn it over to a CPA, you have all your ducks in a row. This will save you time, frustration, and money.
The SBA reports almost 50% of small businesses fail in the first five years because of poor financial management. For most small business owners, the above systems will be a good guideline for you. If you think you want help, let’s schedule a time to talk about what you are looking for. We are here to help.
