5 Accounting Tips for Small Businesses

Running a small business is hard. It takes time and dedication to bring your vision to life. Here at SDA, CPA Group, we know what that’s like because we’re a small business just like you. As such, we know how overwhelming it can be to manage your accounting needs while also trying to grow your business. So I thought I’d share some tips for managing your finances.

1) Dedicate time to updating records.

Keeping accurate records takes time. If you rush, you can make mistakes that will cost you money. So take the time to keep your records up to date and accurate.

2) Track business expenses.

Keep those receipts! Expenses can often be used to reduce taxable income, so be sure to track them. Expenses that are commonly used to reduce taxable income include startup costs, wages and payroll taxes, retirement plan contributions, and health insurance, to name a few. These kinds of “write-offs” help small businesses that may not make a lot of profit, especially in their first few years of business. Take advantage of them when you can.

3) Keep personal and business expenses separate.

When running a small business, it can be difficult to separate personal and professional expenses, especially when it’s just you! Keeping the two separated will help you stay on top of your business and may help you avoid underpaying your taxes.

4) Use accounting software (like QuickBooks Online).

Using accounting software, especially a cloud-based one, will help you stay organized and on top of your finances. We use QBO at our firm and for our clients, and it makes everything so much easier to maintain! It’s worth the investment (and the expense is one that can be used to reduce your taxes!). Read more about cloud-based accounting software here.

5) Hire a professional accountant to help.

I’m not just saying this because I am a CPA. I’m saying this as a small business owner, who knows how much time it takes to properly manage my business’s accounting. All the time it takes to manage your finances could be spent doing what’s important: running your business.

Did you find these tips helpful? Call us today to see how we can help you!

-Stanley & Kelly