Accounting isn’t the most exciting topic in the business world, but it’s one of the most important. Starting a new business is a huge and often difficult task. If you’re having trouble staying on top of your company finances, these four tips will help you keep everything in order.
1. Keep your business and personal expenses separate.
You never know when you’ll need a business bank card. You might run into a potential client and offer to buy them lunch, or you might spot a great desk chair on sale while out shopping. However, don’t ever pay for personal expenses on your business bank card, even if you’ll pay it off immediately. Things will get very messy very fast. Your life will be a lot easier come tax time if you have all your deductible expenses in one place.
2. Hire an accountant.
Accountants can be expensive, but they can save you a headache and a huge hassle. While it can be tempting to save money and do your own accounting, you’ll have to spend a significant amount of time learning about tax laws and filing paperwork. Wouldn’t you rather spend that time building your business instead?
3. Take a bookkeeping or accounting class.
If you feel totally lost but have made up your mind to handle your own finances, enroll in a bookkeeping or basic accounting course. By learning how to balance your books professionally, you’ll be on the road to managing your own money in no time.
4. Keep track of everything you spend.
Carry around a pen and notebook at all times. When you make a purchase, write it down. At the end of the week, calculate how much you’ve spent. This will give you an accurate idea of where you stand with your finances, and it will also reduce stress.
