Accounting doesn’t have to be something that you dread. In fact, if you stay on top of your finances and operate with full transparency as a business owner, accounting can be downright easy. Here are just a few tips for eliminating the headache of dealing with business-related money matters.
1. Keep Meticulous Records
Disorganization is one of the biggest causes of money stress. When you can’t remember where you put all of your receipts, invoices, bank statements, loan applications and tax forms, a simple task can cause hours of frustration. Do yourself a favor and keep things tidy around the office. Make use of trays, folders, binders and file cabinets, and if you ever notice paperwork starting to pile up, take action immediately.
2. Don’t Skimp on the Details
Let’s say that one of your employees used their company credit card. Where was the purchase made? How much did it cost? Did they fill out the right forms to document the expense? All of these details should be noted and recorded within 24 hours of the action taking place. If you let your employees be lazy about it, you’re just asking for important minutiae to slip through the cracks.
3. Strive for Accuracy In All Things
It should be a standard practice for you to double-check all numbers and figures on your financial records. This is the only way to ensure that your documentation stays accurate. Don’t put it off because you’re in a hurry or because you’re “sure” that everything is fine; this is how mistakes slip through the cracks. Take the time and check for accuracy right away.
4. Understand Basic Accounting Practices
If you’re completely lost when it comes to assets and equities, it’s time to improve your accounting skills. Getting a degree would be the most helpful, but even if you don’t have the time or inclination for that, you can learn a lot from some basic accounting courses. You don’t even have to enroll in a brick-and-mortar school. There are many online programs available for people who want to learn more about finance.
Don’t wait a year to look at your tax situation. Not only can you be fined for not doing certain things quarterly, but you’re also leaving a lot of room for error when you put things off. Documents get lost; memories fade; payroll records get complicated. It’s better for everyone, including yourself and your employees, if you stay on top of tax situations and deal with them as they come.
6. Utilize Your P&Ls
Profit and loss statements (P&Ls) are a great way to evaluate the state of your business, especially if you do them regularly. You’ll be able to identify any areas that need improvement while also catching errors and discrepancies as they appear. In addition, you’ll know right away when your company is headed for trouble, and you’ll be able to head things off at the pass instead of letting them snowball into something bigger. This can make all of the difference in your long-term success.
These are a few simple tips for managing your money as a business owner. Whether you’re starting a CPA firm or just hoping to keep costs down with your new company, these suggestions can help you ensure long-term success for your brand.