Having to engage with the world of finance and accounting is often the most intimidating part of becoming a small business owner. This is especially true when you’re just starting out and the chaos of organizing and getting your priorities in order can be daunting.
While it may seem like some people were simply born to be businesspeople, it’s easy to forget that business smarts are not innate. Even the most successful CEOs were, at one point, likely seeking out an accountant for small businesses they had just started.
As the cliché goes, patience is a virtue. But clichés exist for a reason. It takes time to figure things out and write a playbook for your unique entrepreneurial endeavours.
There’s no shame in not having the know-how to do something right off the bat, particularly when it comes to understanding and maintaining the numbers that are keeping your enterprise afloat.
With that in mind, here are 5 small business accounting tips to help you get where you need to be.
1. Seek Out Professional Help
The most obvious way to really take control of one’s finances is to hire an accounting services for businesses and allow them to put their expertise to work. In most cases,
Tangs Accounting offers premium services for just about any kind of business. Whether you represent a law firm or you own your own restaurant, we’ve got over a decade of experience, during which we have helped:
- Home Repair & Maintenance Services
- Auto & Glass Repair Shops
- Brick and Mortar Retail Shops
- Chiropractors & Physical Therapists
- Construction & Other Trades
- Bloggers & Creative Professionals
- Insurance Agents & Brokers
- Real Estate Agents & Brokers
- Online Stores & Businesses
- Restaurants & Food Trucks
For many business owners, it’s probably necessary, at the very least to seek out accounting tips for small businesses in need of a bookkeeping boost.
2. Get Organized with an Accounting Checklist and Regular Reviews
When a small business owner is relegated a few too many responsibilities, it’s always possible to forget your duties as a book manager. That’s why creating an accounting to-do list is essential. Doing so will also help you to conduct regularly scheduled reviews.
If you have employed someone to manage your books in-house, it’s easy to assume they’re doing a fine job. But as a business owner, trust can only go so far. If you hope to avoid and undue, malicious manipulation.
It’s always good to know what money is coming in and what’s going out. Monthly and annual cash flow can too easily get sidelined by other concerns. While this tip should go without saying, it’s important to consistently assess your standing and manage all of your accounts with enthusiasm.
Not only will regular account reviews help you to get a clearer understanding of the direction your business is headed, but they also allow you to see which areas need improvement or where resources need to be allocated.
Reviews, suffice it to say, are imperative for the success of a business.
3. Prioritize Taxes Ahead of Time
Time is money, and taxes necessitate that you set aside quite a bit of time. corporate taxes can be tricky, it’s helpful to give yourself a bit of foresight and come up with some contingency plans using that extra time.
No matter what kind of operation you’re running, you’ll need to pay close attention to the amount of taxes you have to pay. Corporate tax, for instance, is calculated by factoring 38% of your taxable income after the 28% federal tax abatement.
If you don’t know what that means, don’t worry. Tax season is an incredibly strenuous time for many businesses. That’s why having reputable experts in the world of either small business or corporate tax services is vital for the upkeep of any given business’ books during the most hectic season.
Of course, it’s nice to get a specific estimate of deductible expenses and an idea of payable taxes and their respective rates. But By anticipating any worst-case scenarios ahead of time, you’re doing your business a huge favour.
Broadly speaking, personal taxes usually are in some way intertwined with business taxes, particularly if you’re the sole proprietor.
4. Be Mindful of the Small Things
This is perhaps the most important tip of all. Money matters can ultimately be boiled down to a question of attentiveness and care. Simply double and triple-checking your books can help you avoid common accounting mistakes and avoid any intervention from the CRA.
In matters of finance, something as small as a decimal point or a mistyped number can make or break a business. Once again, in order to avoid an audit, it’s important to go over your findings repeatedly. If possible, let another set of eyes take a look at the books for you.
The underlying theme amongst these tips is diligence and being your boldest self. This means creating a routine and sticking to it. The more your business grows and the more time you spend bookkeeping, the faster you’ll be ready to write that entrepreneurial playbook.
As a business owner, it’s takes a great deal of time to get the hang of all aspects of running your operations. With these tips in mind, however, you’ll feel confident in your abilities in finance and accounting.
If acting as an accountant on your own doesn’t seem ideal, you’re in luck.
What Can Tangs Accounting Services Do for You?
Tangs Accounting offers a number of services that can help optimize your accounting books, including, but not limited to, setting up an accounting system from scratch. Not only will we establish the physical system and business banking accounts, but we can also help you with cataloguing money matters along the way. Tangs Accounting offers services such as:
- Installation of the physical accounting system
- Establishing business bank accounts
- Division of personal and business systems
- Records of invoices and receipts
- Information of tax obligations
- Payment collection system
- Payroll set up
- Prediction of future expenses
With these accounting tips for small businesses and the help of Tangs Accounting renowned services, you’re bound to get a leg up on all your business’ finances.