November 9, 2017

The Ultimate 5 Keys to Get your Small Business Accounting on Track

Running your own business is a journey where you learn, not just about entrepreneurship and management, but about every aspect of your field. And if you plan for your business to really get off the ground, your accounting administration is one of the main things you’ll need to make sure you have set up properly

 

1.Open a Business Bank Account 
The biggest mistake you could do is mixing your personal bank account with your business one. Once your business is registered and you have all the necessary legal paper, instantly start a business account. This is more trackable, and will give you more liberty in spending on your company’s expenses.

2.Track your expenses 
Don’t miss a beat! Keep all those receipts, invoices, and even canceled cheques. Whether you’re spending on a team bonding dinner, or new equipment for your crew, keep a record of everything you’ve spent. This will help you determine what your net profit is, where you might have a cash leakage, and whether or not you’ve been investing in the wrong places.


3.Establish a bookkeeping system 

Whether you do it yourself or outsource a bookkeeping agency to handle it for you, establishing a bookkeeping system is essential for your business, no matter how boring of a task it may seem. If you’re still starting your business, it might pay to either invest in an in-house accountant, or at least, in an accounting course for one of your trusted employees.


4.Determine How You’ll Pay and Get Paid

Business is all about the transaction of money, going in and out of your bank account.  Setting up a payroll and invoicing system is crucial. Will you pay your employees in cash or go with bank transfers? What about your clients, is cash your best option, or are you -for example- receiving payments in different currencies that require a bank account?

5.Keep refining your methods
Like many other aspects in business, accounting is a matter of trial and error. There’s no such thing as a first-timer, you’ll have to try some inconvenient methods until you reach the optimum formula for your business. So never stop learning more, and never stop refining your accounting process.

 

There, we’ve set your foot on the first step. Now go out there, open that bank account, and start rocking the business world with a foolproof accounting system.

 

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