If you’ve recently started or are about to start your own small business, then congrats are in order! It undoubtedly takes an amazing amount of perseverance and passion just to get to this point. You probably already know this but we’re going to say it again. Being a small business owner means dealing with not just that rush of very satisfying milestones of success but also an ever-expanding (and often daunting) to-do list.
Start Off Right
To start your small business off right, getting on top of all of the major accounting tasks that are inherent in owning your own business is crucial. To that end, following is a list of steps that can give you plenty of confidence, knowing that you’ve covered all of your bases. Then you’ll be ready to move on to the next task on your small business to-do list.
Initial Small Business Accounting Steps
1. Open Your Business Bank Account
Once your business is legally registered, you’ll need a business account for depositing your income. A separate bank account is crucial for keeping your business funds separate and making everything much simpler at tax time. It’s also important to note that corporations, LLCs, and partnerships are required by law to maintain a separate business bank account. A sole proprietor doesn’t legally have to maintain a separate business bank account, however, it’s most assuredly recommended.
2. Start Tracking Your Business Expenses
The basic foundation of all solid record keeping for small businesses is learning the ins and outs of effectively tracking your expenses. It’s a very important step that gives you the ability to build your financial statements, and monitor your small business’ growth, while also keeping track of your tax-deductible expenses, preparing tax returns, and supporting what’s included on them.
3. Developing Your Bookkeeping System
What exactly is business bookkeeping and how is it different from accounting? This is a question that many new business owners often ask. Simply put, bookkeeping is your day-to-day process for categorizing and recording all of your business transactions as well as the basic reconciliation of your business bank statements. Accounting is a higher level process that looks into the progress of a business while also making sense of all the data that the bookkeeper has been compiling.
Too Busy?
If like many new business owners, you’re way too busy to deal with all of these steps, we can help. At DeepSky Accounting, we perform both bookkeeping and accounting services and have been doing so for years now. Rather than letting your bookkeeping and accounting needs get out of control from lack of attention, outsource them to us for a more efficient accounting program. On the other hand, if you’ve been in business for a while now but haven’t had the time or the resources to set up a proper in-house accounting department, it’s still not too late to get back on the right foot financially.
Get a Free Small Business Accounting Quote
Simplifying your accounting processes and helping you find the freedom for growing your small business is right in our wheelhouse. Outsourcing your accounting to DeepSky could be your best solution, so contact us at (949) 200-6829 for your free quote.
