Handling your own accounting can be a ton of work. But if you want to get it done, there are some basic accounting principles every small business owner should be aware of. Consider these key aspects of basic accounting for small business:
What is Accounting?
Accounting is what any small business will need to record all transactions that have occurred. This will include sorting, storing all types of reports and anything that has to deal with money. For example, you can pull up records of January transactions that occurred in the second week to see how much money was obtained and then turn that report into an analysis of what took place the previous year if there was an increase.
What is an Account?
It is important that a small business has an account separate from a personal account. With the business account, it will be easier to track everything that occurs with your company. This will also make tax time less complicated and far easier for you to track the business growth.
There are several options you can take advantage of for accounting services. You can opt to do your own accounting. But it may be more beneficial to get the help of trained professionals.
Track your small business accounting yourself:
It’s important to stay on top of what you’re spending and what’s coming in for your business. You can do this by implementing automated software, such as the services provided by IntegraPay.
Outsource your small business accounting:
While you can do all of your accounting yourself, there are times when it’s more practical to outsource your accounting. The main benefit of outsourcing will give you more time to focus on your business instead of taking time away to handle that part of the business which is not generating revenue.
What Do You NEED to Know Before Setting Up Your Accounting?
Before setting up your accounting, it’s essential to know a few key aspects. How to store receipts, invoices, tax returns and bills. Also you will need to establish a bookkeeping system and setup a payroll system. For a relatively low cost you can set up a Xero account, check out our Xero + IntegraPay add on
that can streamline your invoice processing so you can save time on administration.
Understanding these basic accounting needs for small business will help grow your company as you are able to easily monitor transactions that occur. As well if you go with an outsource you can now focus more time on your business and allow a professional to assist you on that side of the business.