Blog | Bookkeeping Basics for Small Businessowners

Whether you’re a numbers person or not, you need a basic understanding of bookkeeping to run a small business properly. The experts from Vickney & Associates, who are passionate about all things numbers, share some simple accounting steps to give your small business a confident start or path forward.

  1. Open a business account.  You need a bank account for your business to keeps records separate from your personal finances and streamline your tax filing process. Designated business accounts also protect your personal assets against bankruptcy, lawsuits, or audits.
  2. Monitor your expenses. Save receipts and record all your business expenses, as you need to report each under various categories at tax time. A smart, convenient  way to do this is through a small business credit card that automatically tracks and categorizes your expenses into an annual report at tax time.
  3. Choose your bookkeeping and payroll system. If your business requires you to establish payroll, you’ll need to determine if you want to learn and use one of the bookkeeping and payroll tools available for small businesses, or if it makes more sense to outsource your needs to a trusted bookkeeping professional.
  4. Know your tax obligations. Will the nature of your business require you to pay sales tax? Or are you self-employed and need to determine what your withholding taxes will be? Look at how your business is structured and know how you’ll properly manage your tax requirements.
  5. Keep good records; store them securely. Spreadsheets are your best tool for tracking your business income and expenses accurately and conveniently. Back up your critical data and store all records securely so that your business is legally compliant per sba.gov requirements. 
  6. Check in and re-evaluate. Balance your books to make sure that your assets = liabilities + equity. Generate reports like a balance sheet to track assets, liability and equity, as well as a cash flow statement and a profit and loss statement. Review all your reports and determine where you need to make adjustments to keep yourself viable and thriving.
  7. Lean on a pro. If your head is spinning at the thought of spreadsheets and statements, it may be in your best interest to consult an accountant who specializes in all aspects of fiscal small business management. 

 

Small Business Bookkeeping is Just the Beginning

Giving your small business the best start possible means finding the right accounting, bookkeeping and tax options for you. To make the numbers side of launching or re-organizing your business less daunting, rely on a full spectrum of services from Vickney & Associates. Contact us to learn more—we look forward to hearing from you.