Small Business Accounting Tips

Follow these accounting tips to make your accountant and yourself happy.

Although accounting is a crucial function for any business owner, it doesn’t have be something you fear. You don’t need to be a perfectionist or a planner to make sure your records are accurate and complete. File Request Pro allows you to easily create Customer portal accounts branded upload pages for clients. You can integrate them with GoogleDrive, Dropbox and OneDrive so files are automatically moved to these locations.

Keep accurate records

Your online banking service can handle a lot of your business’s accounting. But what is most important? Keeping all your financial records in one place. This will allow you to quickly respond to any request and save time.

Online banking allows you to track your debits and credit. Separate bookkeeping records are required when it comes to accurately stating how money was spent or earned. These records should track everything, including how much cash was spent and what items were purchased with credit cards. They also need to record whether expenses were reimbursed to employees.

Sort and file receipts

It can be tedious to keep track of receipts and save yourself a lot of trouble in the long-term. While it is a noble goal to keep track of all receipts that are related to your business, real receipt accounting goes beyond that.

Receipts can come in many sizes and their ink will fade over time. Take photos of receipts or scan them to a standard letter-sized paper. Then, collate them according to the date you want to match your financial records.

Receive applicable taxes

At the time of purchase or when payroll is generated, taxes must be paid. As with receipts and proper accounting, there is more room for error the longer you wait between transactions and proper accounting.

Taxes must be collected or applied as soon as possible after a sale has been made. This will ensure that you are not liable for one lump sum of tax at the end the year and you don’t have to pay penalties for late tax payments. This will allow your accountant to make as much profit possible.

Invoice accurately

Is it enough to prompt your clients to pay invoices? They are so much more than that! They are records of terms and conditions of transactions. It is important that you provide accurate and complete information. It is important to know the differences between receipt and invoice.

You can’t edit or add to an invoice, create multiple versions or cancel an incorrect invoice. This will confuse your accountant and the accounting process (and receivables). Don’t do it!

Receive donation and contribution receipts

Contributions to outside organizations may provide tax benefits for your business. However, it is important to discuss with the recipient organization whether receipts could be issued. Some donations are more complicated than a check.

Although it may seem like a simple request it can make a difference in whether a contribution is accepted or denied. Do not make it more difficult for yourself or the charity than necessary. Each additional step or delay will make it less likely that you will make that generous contribution next year.