Accounting is and always will be a critical function of the savvy business owner, but accounting doesn’t have to be a nightmare or something to dread. It just takes a little perseverance and planning to ensure that your records are as accurate and as complete as possible.
Tip 1.) Keep Accurate Records.
Much of your day-to-day accounting can be handled and tracked by online banking services, but what’s most important about your financial records is keeping everything in one place so you don’t have to scramble to meet a request, and for the sake of simplicity.
Tip 2.) Sort and File Receipts.
Keeping an accurate count and file of all receipts can seem tedious, but it will save a lot of headaches in the future. Try and make it your goal to make sure you keep all receipts related to your business-real receipt accounting goes well beyond just retaining them.
Tip 3.) Collect Applicable Taxes.
You need to collect (or apply) taxes as soon as a sale is made or immediately upon payroll generation. That will ensure that, a) you’re not liable for one lump tax sum at the end of the year, and b) you won’t incur penalties for delayed tax payments. This will help your accountant keep as much profit as possible.