Getting Your Company on Track with Business Accounting
By now, you probably have an idea of how running a company is not as simple as you initially thought it would be. Yes, it is definitely manageable provided you are successful in getting your company on track. To do this, you need to concentrate on one of the most overlooked elements of business success, which is business accounting. Accounting as an aspect of the business ought to be properly set up in the early stages of building your business. Don’t worry, it just looks overwhelming at first but it really follows simple ways that you can complete in no time.
Here are some of the ways to help you get your company on track with business accounting.
1. Open a business bank account
Having a business bank account is necessary for the easier financial administration of your company. This account will be where your monthly revenue will be deposited so that you can monitor how much you made for the month. Likewise, a separate bank account for your company could make your tax computations easier as your personal savings and business savings won’t mix up during audits. You may also consider opening a business checking account and a business credit card to draw the line between your personal expenses and business expenses. In opening any of these accounts, you first need to make sure your business is legally registered as you will be asked for a registered business name.
2. Record expenditures
Just like budgeting for a family or for your monthly personal expenses, your business needs a record of expenditures so you can monitor the growth of the company. In monitoring expenses, you may want to classify your receipts according to categories for better tracking. For example, you can separate meal and entertainment expenses from vehicle-related expenses, business travel expenses, office expenses, and salaries. With an organized receipt filing, it will be easier for you to sort out where you spent the funds and whether the expense was really necessary. You might think that this is such a complicated part of business accounting, but you are lucky to have several options to fulfill this task more efficiently. For instance, you can use Google Drive, OneDrive, or other online data storage to keep your receipts and file them accordingly. Moreover, you can be sure you will have access to the receipts whenever they are needed for auditing and tax filing.
3. Do bookkeeping
A lot simpler than accounting, bookkeeping refers to a daily process of recording business transactions and reconciling bank statements. You can do the bookkeeping yourself (using a spreadsheet or simple accounting software), outsource it to a team of professionals, or hire a bookkeeper for in-house support. For large businesses, it would be wiser to resort to outsourcing or hiring in-house help so you could be more focused on other demanding responsibilities. When you do the last option, you would need to set up a payroll system (which is another element of business accounting you really need to go through to keep track of your company).
4. Determine payment options
Another thing you need to decide on is the payment option for your products and services. For this, you need to consider what payment setup works best for you. You may want to use POS (point-of-sale) payments only, online payments only, or a combination of POS system and in-person payments.
5. Familiarize tax obligations
One of the responsibilities that come with your business proprietorship is paying your taxes. In order to determine your tax obligations, you have to check with the tax bureau concerning the guidelines of paying taxes in the area. Of course, corporations are taxed differently than small business entrepreneurs. This is when a subcontracted accounting provider could be a huge help for your business, as they would be more adept at handling your taxes.
Business accounting is a must if you want your company to monitor its growth and ensure success. No company succeeded without a review every now and then of its financial records. However, if you think this is rather a complicated task, you may opt to outsource an accounting solutions provider to help you with your business tax obligations, bookkeeping, and other accounting needs.
Learn how SERVIO’s Accounting Software can help you out. Request for a meeting today.