Choosing Accounting Software for Your Small Business
In order for a small business to not only survive, but prosper, all financial records must be accurate and up to date. Proper financial recordkeeping allows for several advantages for small businesses. Accurate financial records can help you see how your business has progressed during certain time periods and identify weak spots in your business.
Good recordkeeping can also help reduce stress at tax time. If your financials are well-organized, filling out the required forms and dealing with the IRS are less time-consuming and painful. It is also important that you keep your personal finances separate from your business finances. Should one of those two entities be audited, you don't want to give the IRS a reason to audit the other.
If your business is ever audited or questioned by the IRS for any reason, there are several types of records they generally look for. When organizing business' financial records, try to keep up to date files containing the following items:
*Expenses-A simple way of tracking your expenses is to open a business checking account. This will automatically track the date and quantity of each transaction.
*Income-At the minimum, you should track the type of payments you receive, the date, and who the payment is from.
*Inventory-Always keep your inventory records accurate. As soon as an item is sold, remove it.
*Payroll-Keep up on your employee payroll records. All personal and wage information and hours worked should be updated and accurate.
Any business, regardless of its size, needs to keep accurate, organized records. A healthy business will be able to address and solve problems as they arise. If you feel that you may not be capable of properly and objectively managing your own business finances, you do have options.
If numbers are not necessarily your game, but you'd like to still oversee your company's financial recordkeeping, you may choose to hire an in-house bookkeeper. Those business owners who wish to hand over complete control of their books and finances can hire a CPA or bookkeeping firm to oversee their business recordkeeping.
Whether you choose to handle all of your finances yourself or hire a bookkeeper or CPA to take care of them for you, always be sure that the people dealing with your finances and honest and trustworthy. Always ask for references if you're hiring someone and never be afraid to ask questions if you don't understand something or would like some clarification.
Tessa Carroll
VBP OutSourcing
Good recordkeeping can also help reduce stress at tax time. If your financials are well-organized, filling out the required forms and dealing with the IRS are less time-consuming and painful. It is also important that you keep your personal finances separate from your business finances. Should one of those two entities be audited, you don't want to give the IRS a reason to audit the other.
If your business is ever audited or questioned by the IRS for any reason, there are several types of records they generally look for. When organizing business' financial records, try to keep up to date files containing the following items:
*Expenses-A simple way of tracking your expenses is to open a business checking account. This will automatically track the date and quantity of each transaction.
*Income-At the minimum, you should track the type of payments you receive, the date, and who the payment is from.
*Inventory-Always keep your inventory records accurate. As soon as an item is sold, remove it.
*Payroll-Keep up on your employee payroll records. All personal and wage information and hours worked should be updated and accurate.
Any business, regardless of its size, needs to keep accurate, organized records. A healthy business will be able to address and solve problems as they arise. If you feel that you may not be capable of properly and objectively managing your own business finances, you do have options.
If numbers are not necessarily your game, but you'd like to still oversee your company's financial recordkeeping, you may choose to hire an in-house bookkeeper. Those business owners who wish to hand over complete control of their books and finances can hire a CPA or bookkeeping firm to oversee their business recordkeeping.
Whether you choose to handle all of your finances yourself or hire a bookkeeper or CPA to take care of them for you, always be sure that the people dealing with your finances and honest and trustworthy. Always ask for references if you're hiring someone and never be afraid to ask questions if you don't understand something or would like some clarification.
Tessa Carroll
VBP OutSourcing
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