When you decided to run your own business, you probably thought about all the reasons why running your own business was a good fit for you: What you’re doing is something you are passionate about, or you’re so good at your industry that you should use your ideas to help others! Few business-owners (other than accountants and others in the financial service industry) have said, “I’m so good at books, I should employ myself!” For most business owners, doing your own books takes a significant chunk of time and makes running a successful business much more arduous. There’s a strategy to solving accounting issues for your small business and it all starts with planning and organization.
Separate your business and personal finances. By keeping your entities in separate accounts, you’ll save yourself hours of work and make it easy to keep track of deductible expenses in one place.
Set aside time to do your accounting periodically. Make it a priority to do your books and organize receipts at a predetermined interval and do not fall behind. As much of a headache as accounting tasks may be, you must set aside some time to tackle them.
Do your books in real-time. Cloud accounting may make it easier for you to enter transactions and issue invoices every day. By doing more with your finances every day, you will have more insights into your business, have the ability to make more informed financial decisions, and have everything organized when tax time approaches.
Finally, don’t forget to get paid. Surprisingly, some small business owners do not properly track invoices and customer payments. If you don’t keep proper records that don’t overwhelm you at first glance, how will you know if your payments have come in on time? Make sure you’re properly tracking all payments due and recording when each invoice is paid, how long customers generally take to pay, and which customers you've had difficulties collecting payments from in the past.