For the past few years, business has been very good for online retailers. In the year 2014, it has shown that 60 percent of U.S. consumers make their purchases online. This is why most small businesses of all fields are now expanding through the use of building their own websites. The beauty of online businesses is that whichever category your business focuses on – food, health and beauty, writing, fashion apparel, writing, sports, etcetera – it is accessible to anyone who has access to the internet. All it takes is a few clicks.
If you are a sole proprietor of a small business then you have complete control over everything, and that includes the accounting. Many owners make several mistakes when accounting, ultimately hindering the progress of the business.
Here are some basic tips on take care of your accounting:
Do not forget to collect the receipts
Collecting receipts should become a habit of everyone conscious about money, especially for those in business. Organize your receipts by month or by week and keep them until they are no longer necessary. This is for the assurance that you haven’t been “cheated” every time you look at your bank account statement.
Always keep a record of cash expenses
Keep a log book and a pen nearby so that you will be ready to jot down immediately any expenses you’ve made. Set aside a few minutes every week to record and keep track of whether or not you are staying within budget. Doing this may save you from all the potential headaches and stress.
Do not mix personal and business expenses
This should already be a given, but many still find that taking a few dollars will not cause any harm. Even if it’s “just” for food or gas money, you’ll soon lose track of records and end up in a whole lot of confusion when accounting. Allot a certain budget for your business and do not give or take money unnecessarily. Make sure these funds are strictly for your business.
Hire a professional
… Or you could always use an online accountant software. Small businesses do not need to hire big shot professionals to do your accounting. If you are confident enough to do your own accounting, there are several online accounting services that you could buy and and download for a cheaper price. Make sure that the software you choose can allow you to access your data via the cloud.
Keeping yourself organized when accounting is key to keeping your business afloat. If you haven’t been as dedicated to it, then it’s never too late to start now. At Future Balance CPAs, we’ll help your business get on track and stay on track. Check out our business planning and online bookkeeping packages today.