Starting your own business is exciting, but taking care of your finances can be daunting. With 50% of small businesses failing within five years, how do you ensure your new venture stays afloat?
Taking care of your small business's finances is essential if you wish to succeed. In this blog post, we've outlined five top bookkeeping tips for small business owners.
1. Keep your personal and business finances separate
The lines between a small business owner's finances and that of their company can easily become blurred, so it's important to ensure you keep your accounts separate. This will make things a whole lot easier when it comes to inspecting your accounts and submitting your tax returns, as well as helping to protect you financially should anything happen to your business.
2. Check your financial health regularly
Keep an eye on your financial records to ensure all invoices and payments have been correctly handled. We recommend setting aside time once every fortnight to set your financial records straight and address any issues before they develop into larger problems.
There is automated software available to help you manage your finances, however, we still recommend manually checking your records regularly in case of any mistakes.
3. Keep a record of all expenses
Keeping track of expenses can save you time, hassle and confusion in the long run. You'll need a record of your expenses when it comes to submitting your tax returns, as well as receipts for any purchases you are able to claim back.
Digitizing your receipts can make it easier to find what you're looking for in the future, and is far more organised than keeping a drawer full of loose paper!
4. Stay on top of your taxes
Missing tax return deadlines can result in hefty fines, so it's important to stay up to date with your taxes. Give yourself plenty of time to put together your tax return, and keep your financial records clear and well organised throughout the year unless you want to cause yourself a headache when tax season rolls around.
5. Hire a professional bookkeeper
Whilst it may be tempting to handle your small business's finances by yourself, the margin for error is large. Hiring a professional bookkeeper ensures your business stays on track and you understand your financial options. Bookkeeping is also time-consuming, so relying on the services of a professional accountant can free up your time to focus on other areas of the business.
Small Business Accountant Tamworth
At Early Bird Accounts, our experienced and qualified bookkeepers provide a professional service to small businesses across Tamworth. From monitoring your financial records to assisting payroll, Early Bird Accounts cover all aspects of small business finances. To book an appointment with our professional bookkeepers, visit our website.