Almost half of all small businesses handle bookkeeping on their own for different valid reasons. Some small business owners don’t have the budget to bring in outside expertise. Others may have the knowledge and know-how to take it on themself. Regardless, accounting can sometimes get intimidating – especially when it’s time to file taxes.
Here are three simple steps to make business bookkeeping easier from a certified bookkeeper and small business finance coach:
1) Pick a day and time to work on your accounting books so it becomes part of your routine.
There is power to a daily routine. If you maintain the same food routine, for example, you’re less likely to experience stomach aches. If you maintain the same exercise routine, you’re less likely to experience an injury. The same goes for business bookkeeping. If you maintain the same accounting routine (say, every Monday at 8 am), you’ll be less likely to experience any hiccups.
2) Use the services of a professional to set up your accounting file.
Some small business owners find themselves overwhelmed by the initial setup of their accounting file. Even if you want to take the reins, having a professional handle these first steps will make everything smooth from there on out.
3) Keep your personal and business transactions separate.
Nearly 30% of small business owners use the same checking account for personal and business finances. Regardless of how your business is classified, you should have a dedicated business account for business transactions. This will make it easier for you to record transactions and you will also ensure compliance and legal protection if you’re an LLC or corporation.
Click here to see how RESA® Partner, SMG can support your home staging business as a tax professional.
Silvia holds a degree in accounting, an Enrolled Agent designation from the Federal Government and is a Mastery level Profit First Professional Certification.
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