Most small business owners struggle when it comes to their small business finances. Here are a few tips to getting your business accounting under control.
1. Separate Business and Personal Income and Expenses
Many small business owners don’t track business income and expenses separately from their personal finances. Separating them will make it much easier to stay on top of your business.
2. Use Accounting Software There are many choices available for paid and free online accounting software. They are easy to use and you’ll be amazed at how easy it is to use.
3. Download transactions from your Financial Institution
Using accounting software, downloading transactions from your bank, credit card, and Pay Pal is a very simple. You can download transactions in as few as 5 minutes a day and save lots of time.
4. Make sure to set aside scheduled time for your business finances
A sure fire way to get your accounting and bookkeeping done is to schedule time to work on it. You should schedule time daily, weekly, and monthly.
5. Reconcile Accounts on a Monthly Basis
“Reconciling” is the process used to ensure that all transactions on your bank and credit card statements are reflected on your small business accounting software. Reconciling accounts is the only way for you to know that you have recorded all income and expenses on your small business accounting software. Even if you download transactions you should reconcile your bank, credit card, and PayPal accounts. Reconciling will help you catch mistakes you and the bank/credit card company have made.