Small Business Bookkeeping and Accounting Tips

1
5 Tips To Business Accounting Bookkeeping
2
Know The Basic Bookkeeping And Accounting Lingo
There are some important small business
bookkeeping services terms you must know about. A
sale is a transaction you receive cash for, it is
the money in. Expense is the money out, it is
something you pay for, like rent or supplies. A
liability is something you owe money on, such as
a small business loan. Asset is the item your
business own, like a printer. Revenue is the
income your company makes on a sale. To determine
your profit, subtract the expense from the
revenue. Accounts receivable refer to the money
your customers owe when you send them an invoice.
These are the important accounting lingo you
should know about.
3
Save Important Bookkeeping Records
It is smart to keep the types of documents such
as payroll and inventory management for tax and
other business purposes. A good rule of thumb to
help you avoid getting caught without important
document is, if you are in doubt, just scan and
save it. You may never know when you need in
small business accounting services to show the
document. Now, some of these important documents
include bank statements. Credit card statements,
cancelled checks, receipts, bills, customer
invoices, customer payments, sales receipts, etc.
Making digital copies of bookkeeping records and
storing them in designated, protected files make
these accessible.
4
Separate Business And Personal Expenses
One of the most important and often most
difficult rules to follow when running a small
business is keeping the business and personal
expenses separate. That line is blurry when you
first start out, so set up a separate bank
account for business right off the bat. If you
keep both the accounts separate this would only
help you manage the finances and keep you sorted.
All business owners prefer and need to maintain
two separate accounts for personal and business
expenses.
5
Track Every Business Expense
Since you will have a separate business account,
use it to track every expense with receipts and a
dedicated business debit card. This many seem
simple, but it is important to keep up with
activity for tax purposes and profit monitoring.
It is better not to combine personal and
businesses expenses at all. Having separate small
business accounting services helps you in several
ways.
6
Keep Accounting Statements Up-to-date
Sending an invoice is not the same thing as money
in your hand. That is why accurate cash flow
statements are important. Depending on the
customers, products, payment system, you may be
waiting on accounts receivable longer than you
would like. Without the payment from the
customer, you may not have the cash you need to
cover bills and other expenses. Keep an eye on
payments coming in and check the invoice that
have not been paid. You need to send out past due
notices. Avail small business bookkeeping
services can surely help in this matter.
7
Need More Bookkeeping And Accounting Help?
Contact Today!
www.jarrarcpa.com