As a small business owner, you need to know a few accounting basics in order to keep things running smoothly, there are a few accounting details that it can help to know. Here are a few accounting tips that go beyond the basics of keeping track of your receipts and staying organized that will help you succeed as a small business owner.
Download Bank Records Each Day
If you are using an accounting program, downloading your bank transactions on a daily basis will allow that information to integrate into all of your accounting sheets, allowing you to keep accurate records of your business. This will also you to generate weekly or monthly reports quickly. That way, you will be able to quickly identify any fraudulent activity right away. This is something that you can streamline and even automate.
Create Special Coding for Projects
When you have a special project going on, create coding for it. Create a separate line for items that relate to your project. Creating separate lines will allow you to see and figure out how much money you are spending on a project and generate cost reports quickly. When doing something that is different from your regular business activities, be sure to set up a different system for keeping track of these expenses.
Pay Taxes Right Away
You do not have to wait to the end of the quarter to pay your taxes. With each pay period, pay all estimated taxes. That way, you never find yourself in a position when taxes are due and you are short because you were getting creative with how you were managing your money. Submit payroll taxes after each pay period, however frequently that is for your business, and keep receipts of each tax payment.
For sales taxes, pay those on the same schedule that you pay your payroll taxes. It is better to keep on top of things and be ahead on your taxes than behind on your taxes. Getting behind on your taxes can get expensive.
Set Up a Purchasing Card
Next, reimbursing all of your employees for every little expense can start to get cumbersome. Paying back $5 here and $15 there can get annoying. Instead, set up employees who regularly make purchases for your business with a purchasing card. That way, they can make purchases for your small business with their purchasing card instead of using your own cash. Instead of having to reimburse employees all the time, you just need them to submit receipts
Work with an accountant to move your business beyond the basics, and set up strategies that allow you to simplify your workflow.
For more information, contact an accounting service like Emerald Financial Partners.