5 Bookkeeping Tips for Small Business Owners

Keep your personal and business finances separate.

Many small business owners struggle to keep their business and personal funds separate. In truth, most people mix up their accounts, especially when they’re first starting out.

It’s crucial to remember that combining your personal and business activities is a formula for failure. To keep your business finances distinct, you should open separate credit cards and checking accounts with a bookkeeping system.

You won’t get a clear picture of your business’s fiscal health if you don’t segregate your funds. Furthermore, you may find yourself squandering time during tax season looking through bank records to determine deductible expenses.

Monitor all transactions

Tracking your money is essential for determining your financial situation. Many small firms use a straightforward cash method of bookkeeping. All transactions should be documented diligently.

This means you should keep track of every time money enters or exits your company. Consider setting aside time each week to organize and review your company’s finances.

Don’t forget to include this step in your bookkeeping. This will make reconciling your books at the end of the year much easier.

Utilize a bookkeeping app for small businesses

You can effortlessly track your business’s transactions with a bookkeeping tool like WhyQ KiraKira. An application is preferred because it is easier, faster, and more exact than paper and pen.

Rather than having your records spread throughout the company, the application keeps them all in one spot. Some businesses will deposit and file your taxes for you, reducing the chances of accounting mistakes in your books. WhyQ KiraKira is undoubtedly your first pick of a bookkeeping app because it is user-friendly and provides exceptional customer service.

Get a Professional Accountant

A skilled professional can assist you in discovering strategies to maximize your return by utilizing business deductions and other methods.

An accountant can also assist you in calculating estimated and self-employment taxes, which are both required for small enterprises. If you’re ever audited, a professional accountant should stand by their work and offer support. You’ll find that outsourcing the task allows you to focus on more vital activities.

Accounts receivable should be closely monitored

When consumers fail to pay on time, hence your company’s cash flow might quickly dry up.  WhyQ KiraKira allows you to send receivables reminders to customers via WhatsApp which you can record receivable transactions regularly and set billing reminders and due dates then send receivables payment reminders to customers or suppliers via WhatsApp & SMS.

Need more ideas & insights to grow your business, read WhyQ blog now.