Question: As a small business, what accounting tip have you found most helpful and why?
Know When to Hire Someone to Take Care of It for You
"When it comes to doing your books, managing your business finances and paying taxes, know when you've reached the end of your knowledge. As a small business owner, you clearly need to understand how your business is doing, but you don't need to be a tax expert or Quickbooks master. Figure out when you've reached the extent of your knowledge, and hire someone to take care of the rest from there."
Create a Paper Trail
"Honestly, one of the biggest issues I’ve run into as a small business owner isn’t with my overall budget and revenue -- it’s with the little details of the day-to-day. Setting out a half hour or so to go over a detailed report of my business’s finances and expenses makes it far easier to keep track of things. Better yet, it generates an easy-to-follow paper trail to be used for future reference."
Use Cloud-Based Software
"Find a cloud-based accounting software. When I started my business, I couldn't afford a bookkeeper. Software like this helped me keep my costs down. FreshBooks was probably the best thing that happened to me. It automatically imports bank and credit card expenses, sets rules to categorize expenses, generates valuable financial reports, manages invoicing, late payments, and more."
Don't Do It Yourself
"Good accountants are worth their weight in gold - or at least in deductions. Keeping the books in order is one of the most important things a business owner needs to do, and you don't want that to slide when you're wearing 50 different hats. A professional will know a lot more about the ins and outs of accounting and will stay on top of your financials, saving you money and headaches in the end."