The word accounting makes many business owners shiver. It can be time consuming, frustrating and for some, something that they just don’t want to go. However, there are some simple ways you can make your business accounting a lot easier. Each business owner will have different levels of accountancy burden that they have to undergo but that doesn’t mean some simple tips won’t help get your business finances in order. Here are some tips to get you started.
Properly Account For Your Fixed Assets
If your business has fixed assets you need to account for them properly. Remember, a fixed asset (tangible asset) is a long-lived piece of property designed to be purchased for long-term business use. Remember, to properly account for your fixed assets in the USA you need to follow ASC 360, which is the GAAP standard of accounting you need to adhere to. Fixed assets cost a lot of money generally which means they need to be accounted for in a proper, logical way. If they aren’t and your depreciation is off point you could end up losing a lot of money.
Keep Up To Date Books
This one is so important that we’ve collated multiple tips for you. Solid book keeping is really the foundation of good accountancy practice. If you don’t keep those good books then you could end up making a lot of mistakes. Here are some bookkeeping tips:
- Keep all financial transactions recorded in a timely manner, such as daily or weekly.
- Use a reliable accounting software to automate tasks, such as bookkeeping and generating financial statements.
- Make sure to reconcile bank statements and credit card statements with your records on a regular basis.
- Use a double-entry accounting system to ensure accuracy and completeness of your records.
- Regularly review and analyze your financial performance, such as by creating balance sheets, income statements, and cash flow statements.
- Seek professional advice when needed, such as from an accountant or bookkeeper to ensure your books are up-to-date and accurate.
These might not apply to your or your business but they do provide a solid foundation of tips to keep up to date books.
Pick The Right Software For You
Choosing the right accounting software for your business can be a daunting task, as there are many options available in the market. However, by considering a few key factors, you can narrow down your options and find the software that best meets your needs.
First, consider the size and complexity of your business. If you have a small business with simple financial needs, a basic software that handles bookkeeping and invoicing may be sufficient. However, if you have a larger business with more complex financial needs, you may need more advanced software that can handle things like inventory management, project management, and tax compliance.
Next, think about the features you need. Different software offers different features, such as invoicing, expense tracking, budgeting, and financial reporting. Make sure the software you choose has the features you need to manage your business effectively. At the same time, you don’t want to pay for software that you aren’t going to use…so make sure you check what level of service or software you actually need.
Third, consider the cost. Some software is free, while others require a monthly or annual subscription. Make sure you choose software that fits within your budget and that you are comfortable with the cost.