Useful Accounting Tips for Small Business Owners

Accounting terms can seem very daunting to business owners just stepping into the field, yet if you choose to not learn about them, your business can end up in a bad situation much sooner than you expect. The key to ensuring your finances remain untangled and you are up to date with all that’s going in and out, is bookkeeping. And even more important is doing it right. So, we’ve put together some tips and tricks curated from business owners who started out from scratch and went all the way to become industry giants, on how to beat the dragon (read: accounting).

Accountant or Accounting Software: Choose Your Savior

It may sound like an unreasonable expense right at the start of your business but having an accountant can ease things up for you quite nicely. If you think accounting is not your cup of tea, have an accountant Hobart who knows how to handle small business transactions to deal with your day to day transactions.

Another option for you if you don’t want to get the hassle of an accountant yet is to get an accounting software. Though that requires you to be familiar with terms of accounts to be able to make smooth sailing for your business. There are many tools available that are designed especially for small businesses and cost as low as $15 a month.

Know Your Taxes and Benefits

There are two things you need to be strictly up to date about when you start a business. First, the taxes you owe. Keep a check on all the due taxes you have and stick to your deadlines to avoid incurring any additional costs along the line. Secondly, find your tax benefits! Yes, you heard it right. The Government usually has policies that offers tax reliefs or benefits to business owners that reduces the amount payable in terms of taxes. You can save up a good deal through them.

Draw a Line Between Yours and Theirs

Your accounts receivables are the money people owe you and your payable are the money you owe people. The loans or investments that usually a start-up takes on should be accounted as payable. Don’t confuse your loans as yours and distinctly keep track of what you need to pay back.

Personal vs Business: Don’t Mix!

If you are a small business owner who runs their business from home or even from a small office space, it is likely to mix up your personal expenses with your business expenses. Keep a separate book for each of these expenses to ensure that all expenses and incomes are accounted for and don’t ever get mixed together.

You Can Do It!

At the end it all comes down to how you much you save and how much you spend. Your business can do it much for efficiently if you make sure it “accounts” for everything!