While your accounting needs are more complex than what’s covered here, this is a quick checklist of things to keep in mind when you’re jumping into your new business endeavor. As always, if you have questions about bookkeeping and accounting, we are here to help.
TOP TEN DON’TS
- Make sure you have “vetted” the individual you may delegate check-signing authority to.
- Never commingle personal and business assets – that includes cash.
- Money withheld for sales taxes, mortgage payments, sales taxes, etc. should not be used for other purposes.
- Hand cash flow projections to someone else. You need to know the liquidity of your business.
- Be overly conservative in expense projections and conversely don’t be overly optimistic in your sales projections.
- Rely on a handshake or verbal agreement when it comes to making purchases for your business.
- Sit down and write checks for invoices without matching it to a purchase order.
- Wait until you’ve painted yourself into a financial corner before contacting a lawyer or accountant.
- Put off establishing a relationship with a banker until you need financing.
- Overlook seeking advice from your accountant and lawyer on important financial matters.
TOP TEN DO’S
- Even if you hire a professional to do your books, you should have a basic understanding of bookkeeping. If only to keep costs down you should know how to track your monthly income and expenses.
- Before you open the doors on your business, consult with an accountant that is familiar with your industry before you start.
- Determine what accounting software program works best for your business; there are many software program choices on the market.
- In the beginning, you may want to do your own weekly bookkeeping to help keep costs down and so you have an understanding of where your money is going.
- Depending on the type of business you own, determine whether you need to track inventory and implement internal controls to safeguard against potential loss of property.
- Take the time to reconcile your bank account every month.
- Maintain a cash flow spreadsheet and update it at least weekly, using the bookkeeping software you’ve chosen.
- Outsource your payroll and payroll reporting to a payroll service provider; they have the skills to keep up with the various state and federal reporting that is inherent with payroll.
- Put together a financial statement (budget) at least once a month.
- Set up separate business bank accounts and keep your business records apart from your personal records.
The Do’s and Don’ts of Small Business Accounting
Take advantage of the automatic bookkeeping tasks.
QuickBooks is an excellent tool that takes time to devote to Small Businesses. With comes the ability to connect various kinds of money keeping engines. Connect your bank, PayPal, credit card, or Square to access transaction access. QuickBooks will even take off the calculations, so you don’t have to! Balancing has never been so easy!
Perform tasks on mobile while in the field
Does your business require you to be on-site and not cooped up in an office? With QuickBooks, mobile is just as functional as the desktop version! With today’s technology, there is no reason for a business owner to be unable to access all bookkeeping information while on the go. Your information will be synced with QuickBooks so all changes will be kept safe and correct.
Use QuickBooks to keep a healthy business
QuickBooks allows you to stay organized to keep your business running smoothly. Receive reports and access to data that shows you how your business is doing straightforwardly.
Manage bills on your own
It’s frustrating having to keep up with paying bills on multiple platforms. With QuickBooks, all invoices are quickly scheduled and formatted. There is no need to manage your accounts on your own. Everything is documented when using the billing section of QuickBooks, even your records and bookkeeping.
Forget to log expenses.
There is nothing left unlogged with QuickBooks. When making purchases for the business, quickly use the mobile app to take a photo of a receipt. QuickBooks will quickly log and organize the expense among previous entries. No more worry about having lost a ticket!
Become frustrated at tax time
With QuickBooks, you don’t have to worry about being unorganized when Tax Time comes around. If you have used QuickBooks efficiently, the software will organize all the information you need for tax season for easy access. All records are alongside the FASB regulations.
There are only positives when it comes to QuickBooks, helping your small business. Ensure that you are getting the most out of your experience with QuickBooks by asking any of our trusted members of Pathways Consulting.
We are trained in understanding QuickBooks to the fullest extent and love helping others! Take your business organization to the next level with QuickBooks and our help!