As the owner of a small business, unless you start off with tons of cash and can afford to employ plenty of support staff, you’ll learn very quickly that you are in charge of handling basically everything. From ordering and customer service to cleaning and finances when you first get started there usually isn’t anyone else there to whom you can hand all of these things off. That can be overwhelming, especially when all of these things are essentials. When it comes to small business accounting there are probably a lot things that you don’t know you need to know.
From business related purchases to sales receipts and even the mileage you put on your car, it’s important that you track absolutely everything and keep the receipts if possible. It may seem like a hassle now, but when it comes time to do your business taxes you’ll be very glad that you covered all of the bases. Plus there are a number of different product you can invest in that make tracking easier than ever.
Hire A Bookkeeper
It costs a lot of money to hire a full-time or even part-time employee, so if you aren’t yet making enough money to hire a bookkeeper to work in your business, consider hiring a service. One thing we recommend that you avoid is hiring your cousin or friend from high school who was always good at math but has no bookkeeping experience. Business accounting requires more than someone who is good at math and relatively organized. There is a lot of information about state and federal regulations that your bookkeeper will know and your friend from college may not.
Understand your tax obligations
Taxes, yuck. The word itself can send experienced business owners running. But, if you want to continue to grow it’s important to stay on top of your taxes. There are many different types of taxes that your business may incur. There’s sales tax, use tax, payroll tax, income tax, and the list goes on. It can be hard to keep track of. So before you get yourself in a bind, make sure that you have carefully researched and understand just what the IRS and state taxing authorities expect of you.
Business accounting is complicated and intimidating, which is why many business owners choose to hire a professional to lead them through all of the confusion. If you’ve started a new small business and are looking for a team to support you along the way, give us a call to learn more about our accounting, bookkeeping, and tax services.