Most business owners dislike accounting, yet they understand that it is the heart and soul of running a successful business.
If the thought of accounting for your business’ finance fills you with anxiety, there is a way to strategize in order to make this process part of your day-to-day routine. While this may not sound very compelling, it is going to help reduce the stress associated with your business’ finances, making all accounting tasks less daunting because you are on top of them throughout the year.
Invoice Your Sales
Invoicing your sales should be basic knowledge by now. You need to know what you have sold so that you can keep track of it, as well as update all of the inventory that has been depleted. When using sales orders or picking tickets, finalizing the transaction is not automatic. After you fulfill the order, always invoice the sale to complete the transaction.
Keep Track Of Your Cash Flow
If your business accepts cash or checks, you should always make a deposit run at the end of the day. If your business is open late, or you can’t leave work until later in the evening, you can check with your bank to see if there are late-night deposit options available. It’s just important that you are getting that money into a safe place as soon as possible.
Dealing with credit card transactions is more simple. The money is automatically deposited into your bank within a couple of days. But this often makes it easy to forget about, so make sure you are keeping track of these transactions as well.
Enter Bills When They Arrive
On a daily basis, enter your bills in your accounting software. Every day you allow the bills to pile up, it makes it twice as difficult to catch up. Also, take the time to go through your bills. Make sure they are correct and if there is a mistake, immediately contact the vendor. Don’t wait until you pay the bill to look for inaccuracies.
Record Cash Receipts And Travel Expenses
Do you frequently travel for business? Make sure to keep all of your business receipts because you will be able to report those on your taxes. There are even smartphone apps that allow you to keep track of these receipts in real-time. Some of these apps even create an expense report for you that you can, then, enter into your accounting software.
Pay Your Taxes
It is never fun filing your returns during tax season, but it’s a necessity. If you are late to file, you can be hit with very high penalties. Mark when taxes are due in your calendar and get all the required filings done and paid on time. Check your accounting software for premium add-ons that offer tax preparation, e-filing, and electronic payment transfers. The nominal service fee is worth the time savings and may avoid potential penalties for inaccurate or late filings.
Cash Flow Is King
One of the single biggest problems many small businesses face is a cash-flow crunch. By following the suggestions here, your accounting software can create an accurate cash flow report. This way, you know where you stand and what you may have to do to mitigate this potential cash-flow issue in advance. It is best to run the report at least once per week.
Doing these accounting tasks for your small business may seem tedious, but if you follow these simple steps, you can track your finances on a more regular basis. This keeps you more involved with your finances to avoid any detrimental surprises.