7 Business Accounting Hacks
Your business cannot survive without dedicated and consistent accounting records. Business accounting may sound uninspiring, but it is crucial to the continued success of your business.
1. Keep Separate Accounts
Even if you are a sole proprietor, keeping your business account separate from your personal account can be one of the most important things you can do in your accounting process. Any expenses that may be related to your business should be purchased through your business account.
2. Open Business Credit
Obtaining a business credit card through your business account can also give financial records more clarity. It could also improve your business credit score and preserve your financial records.
3. Maintain Financial Records
You should keep dated and detailed business accounting records of all transactions and purchases. This should not only include sales transactions and supply purchases, but travel, meals, gifts, and any other receipts which have an impact or connection to your business. Categorizing each type of receipt can have further benefits if you can write them off on your taxes as business expenses.
4. Write Everything Down
Keeping track of everything else that you need to remember can release you from trying to remember it on your own. This can include verbal agreements, discussions, deadlines, training requirements, and any other information which is not a financial record. Whether you use a yellow pad, a bullet journal, a scheduling system, a chat system, or some other note-taking program, you should use a system that you are most likely to continue using.
5. Create Business Systems
Encouraging your employees in using the same accounting and recording systems can create consistent financial records. Having employees use the same collaboration or note-taking software and recording client interactions and questions can provide boundless information on how your business can improve your customer service and bottom line.
6. Track Cash Daily
Recording and reconciling your cash each day can make your accounting process much easier, particularly during tax season. Reconciling cash each day can assist you in finding basic accounting errors and route large shortfalls before they become unmanageable.
7. Implement Theme Days
Theme your weekdays around your energy levels can keep your weekly tasks organized. For example, follow up on unpaid invoices, track deadlines, or reconcile non-cash accounts only on one day a week, such as Wednesday. You can also choose days to train skills, brainstorm new ideas, plan marketing, calculate profit margins, or meet with vendors.
Consistency might be the key to financial success in all business accounting systems. Developing extensive systems of accounting may not have any benefit if they are not used daily.