Being a business owner comes with a lot of perks – and responsibilities. We are here to help. Here are some practical tips to keep you on top of things:
ONE: Keep Track of Expenses
If you do not keep good record of your business expenses, you could lose out on some tax write-offs. And no one wants that! A good way to keep track of business expenses is to use a business-only credit card. Then all business expenses are in one place, with one record. No more digging through the junk drawer for Office Depot receipts! Also, keep good record of any business lunches, trips, or other entertainment expenses and the date that they occurred. This good record-keeping helps come tax season.
TWO: Separate Personal and Business Finances
In line with tip #1, be sure to keep all of you personal expenses separate from your business expenses. This will help keep your accounting simple, and will save a lot of time and confusion.
THREE: Plan for Major Expenses
You can save your self and your business a lot of stress by looking ahead and planning for major business expenses. Things to consider are computer or technological upgrades, software expenses, inventory, repairs, and maintenance, to name a few. Put major events such as these on the calendar and start planning financially. Also, keeping in mind seasonal ups and downs of your business will help you plan ahead.
FOUR: Set Aside Money for Taxes
Have a system in place to put money aside for taxes. With certain types of businesses, quarterly estimates are due throughout the year. Note the tax deadlines each year, along with your prep time, to ensure you’re making timely payments. For more information about quarterly estimates, check out our blog post by clicking here.
FIVE: Check In Monthly On Your Invoices
Having a client owe you money for services is definitely not the same as having it in your account. Be sure to check in often to ensure that you are getting all of the money that you are owed, and regularly running an accounts receivable report will help you stay on top of past due invoices. To help ensure invoices are paid on time, put a system in place that follows through with clients after an invoice has been sent out.
Running a business takes a lot of work, but having good bookkeeping and payroll services (that’s us!) along with these tips can help the work run smoothly.
