As a small business owner, you’ve got to wear a closet full of different hats, and we aren’t talking about the latest headwear fashion. You are your company’s marketing team, customer service department, ownership board, and public relations office. It’s the price you pay for calling yourself an entrepreneur. There’s also another role that you get to play: the accountant. Yes, you’ve got to pay your dues, and it isn’t just a once-a-year task.
Keeping your books straight is one of the most difficult tasks for new entrepreneurs. Here are a few basic bookkeeping tips for beginners (and even non-beginners). Want to make your deadlines and avoid penalties? Follow these closely.
Set up a business account and separate your expenses
We live in an age where Canadian startups are raising over $700 million dollars from outside investors, a boom of companies started in the proverbial basement or bedroom with little more than a week’s paycheck to get off the ground. It’s a fascinating time for business , whether you’ve started your company by bootstrapping, angel investors, or opened a traditional store by the side of the road, to open a separate business account.
This will give you a clear idea of what is coming in and out of your company bookkeeping.
Use basic software from the beginning
You might think that you can handle all of your a spreadsheet in Excel rust us when we say that you should take advantage of technology . Automating tasks will save you hours each week and help protect your from human error. Perhaps the biggest benefit to software is that you’ll be able to see everything in front of you: which invoices are due or past due, your profit to date, estimates for projects, invoice templates, and important dates.
The days of a handwritten ledger are gone but don’t underestimate the power of bookkeeping
Pro tip: software available to you ranges from expensive and comprehensive to basic and free. There are plenty of different programs available that run in the cloud. Shop around, take free trials, and see which one fits your needs best. You might not need to pay anything at all.
Set money aside each month for taxes
Businesses are the backbone of any national economy, and the Canadian Government takes pride in helping give businesses the money and incentives they need to grow. There are plenty of grant and financing options, as well as tax breaks and other great options for entrepreneurs chances are if you’re turning a profit, you will owe money to the government at the end of the year.
There are few things than cutting big check That’s why we recommend you set a little aside each month. m not actually save you any money but it saves you from the sting of paying a lump sum or, worse, not having enough money to pay your tax bill
You’ve got a lot to worry about as a business owner, but you should never forget that paying your fair share in taxes is part of your responsibilities too. Use these 3 bookkeeping tips for beginners to make sure you keep your books straight and have the money to pay when the time comes.
Want to make bookkeeping easier and save some time and money while you’re at it? Get a professional accounting firm that knows how to help small businesses and startups maximize their bottom line.