Step-by-Step Accounting Tips for Small Businesses

July 20th, 2014

466205567Running a small business is no easy task. In addition to managing employees and providing excellent customer service, you have to stay on top of your finances to make sure your business is operating in a profitable way. Many business owners put off handling their accounting matters, hoping that they will somehow take care of themselves. However, a small business can benefit greatly from hiring an accountant at a CPA firm to handle the numbers side of the business. Keep reading for accounting tips for small businesses.

Step One
The first step in accounting for your small business is to set up your accounts. You should decide on a fiscal year start date to establish your accounting cycle, and determine which methods of accounting you’re going to use. If you have little or no experience in accounting, you may want to consult with a CPA to find out what makes the most sense for your business.

Step Two
In order to have a clear picture of your business’s financial status, you’ll need to gather all pertinent documents from all corners of your business. This includes sales receipts, invoices, refund slips, and anything else that involves money coming or going from your business. Keeping close track of your records will make accounting that much easier for you and your accountant.

Step Three
Having all of your financial documents in order is important so that you can begin to reconcile all of your accounts. Depending on the number of documents you have and the state of your business, this reconciliation can be a bit tricky. That’s why having an accountant go over your records on a regular basis is a good idea, both for the good of your business and for your own sanity.

Step Four
In addition to reconciling your finances for internal matters, you’ll also have to report your financial statements to lenders, investors, and the government. Keep your business in good standing across the board with the help of an accountant.

If you need a tax advisor or tax preparation service provider, look tothe CPA Firm of Flowers, Rieger & Associates, P.L.L.C. We have been serving the Tucson small business community for 30 years. Contact us at (520) 327-8706 to learn about our full range of accounting, tax, and consulting services. We deliver excellent, accurate work for both businesses and individuals.

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