Are you a small business owner? You will need to know the basics of bookkeeping then to ensure you are doing your taxes right and to avoid an audit. Randall Dang is an accountant who has helped countless small businesses sure up their books, so owners and managers can focus on higher order concerns. Of course, not every small business owner can afford an accountant like Randall Dang. So how can he or she make the bookkeeping process easier and less cumbersome? Here are several tips to get started:
Take the Time Every Week to Update Your Books: Don’t wait until the end of the month to take care of all those receipts and receivables. A pile up of paperwork is not only intimidating; it could lead to more errors and frustrations. Block out a time in your calendar each week to prevent this from happening.
Track Every Expense: Every expense matters when it comes to accurate bookkeeping. You might be entitled to a write-off and not even know it. The easiest way to track your expenses is by paying for them with a credit card that is used only for the business. That way you don’t have to worry about tracking all of those paper receipts. To make it easier on yourself, stay organized by categorizing all of your expenses too.
Record Your Deposits: Another area where small business owners typically have trouble come tax-time is their record-keeping when it comes to income. Obviously, you don’t want to pay too much or too little in income taxes, so the easiest way to avoid this is by keeping accurate records of all your deposits. This includes loans, sales revenue, and other transactions where you take in money.
Bookkeeping is not usually the fun part of the job as an entrepreneur, but it is a necessary step to running a successful business. Be sure to keep these tips in mind as you stay up to date on the books.