Good business accounting is probably not the coolest part of a small business enterprise. But it is fundamental to success and essential in keeping out of trouble with the IRS.
What Are the Purposes of Business Accounting?
Business accounting primarily exists to keep track of financial numbers, so it requires a systematic, complete, and accurate recording of all the financial transactions of a business. It supplies the information needed by business owners to budget, plan, and make financial decisions. It enables good business performance management. It facilitates good financial management, including liquidity management and the use of financial controls. It helps to detect theft and fraud. And it enables a business to meet legal requirements. Good business accounting creates confidence in employees, suppliers, and financial institutions.
12 Steps to Get Your Business Accounting on Track
Follow these 12 steps to protect your business interests and keep your anticipated success on track:
Open a business bank account and a business credit card. Separating one’s personal and business finances is essential for good bookkeeping and clean tax reporting.
Create a solid business plan and a budget for the business.
Develop a reliable bookkeeping system.
Use your bookkeeping system to track all business expenses. These include meals and entertainment, business travel, vehicle expenses, and receipts for business gifts.
Establish a payroll system. That will include a payroll schedule and determining the correct withholdings.
Don’t forget to determine how and when to pay the owners of a business.
Establish proper sales tax procedures.
Determine the business’ income tax obligations.
Calculate gross margins and carefully determine pricing.
Apply for needed funding.
Find an experienced CPA to assist you.
Regularly re-examine your business accounting processes.
Seek Expert Financing and Marketing Assistance
Contact Bold Growth Solutions, based in San Francisco, CA. Running a small business is challenging. We’re your extended team and can take on some of those challenges. Leave your business financing, digital optimization, and performance marketing to us. Now you can focus on what matters.