Small Business Accounting | 3 Things You Need to Stay Organized, Be More Profitable and have Clarity in your Financials
Who doesn’t love a fresh start? Ask ANY accountant what it’s like to come down from tax season and they’ll collectively describe it as euphoric.
You’re likely feeling a sense of relief after completing your business taxes for another year, too! So take a deep breath, stash your receipt-filled folders in the closet and celebrate another tax season being over.
You worked hard, friend! You deserve a break from crunching numbers and printing receipts you swore you’d do monthly but never got around to (ya, I see you). It’s time to kick back, but don’t get too comfortable. As entrepreneurs we know how quickly time flies and before we know it, we’ll be right back here in #TaxSeason2023 scrambling to get organized and file for another year.
What do you say we commit to showing next tax season who’s boss by showing up more prepared than ever? Here’s how we can make it happen by utilizing 3 things every small business owner needs in their accounting arsenal.
How to Start Bookkeeping
*Falls into immediate panic because you’re a creative, not an accountant.*
But this is where things can get a little tricky as a small business owner. You can outsource your bookkeeping and accounting, but you NEED to be in the game alongside those services. See my full breakdown on a bookkeeper vs. accountant here.
I’m no stranger to the game on either side of the court. So I’m going to give you a simple list of 3 things you need to get started with your bookkeeping. Because it’s never too late to start! This manageable list will get you set up on the road to success next tax season.
Ready for my 3 tips that you can start implementing today? You need a basic understanding of expenses, a trusted resource, and a system.
1. Basic understanding of small business accounting.
When I say basic, I really mean basic! Accounting basics for small business owners are a great place to start. In this category, we’re really talking about knowing what to do with money coming into your business and how to track the money going out. Pop over to the following blogs and get answers to your questions like “what is a tax write-off” and “how should I accept customer payments?”
2. A trusted professional to guide you through.
Once you have a basic understanding of small business accounting, it’s important to keep a professional in your back pocket for those questions you can’t find answers to. Having a great relationship with a bookkeeper and/or accountant who understands your business will only provide EXTRA peace of mind when you’re in a pinch. For example, if you have a tricky receipt that could apply to multiple expense categories you can reach out to your preferred professional and ensure you’re writing it off properly.
3. A system.
^ THIS. I love a good system, and you will too. The thing about systems is that everyone has a different method to their madness and the way you organize your receipts is really up to you.
The most important thing when setting up a system is to make smaller, realistic goals you can stick to. If that means in the first week you commit to keeping all of your receipts in one folder - perfect! You simply need to start somewhere.
Pro tip: work toward getting a routine set up with Quickbooks Online. See why it’s the best bookkeeping tool for small business owners right here.
Getting your business money organized is as easy as 1, 2, 3! Implement these 3 steps into your regular routine (yes, even if you outsource most of it) to stay on-top of your financial game.