Business accounting can be stressful. Here are thirteen tips to help simplify your accounting needs and find some peace in the process.
1. Keep It Simple. There are apps and software options to help automate the invoicing and accounting process.
2. All in One Payment Solution. Gateway platforms (e.g., Stripe) keeps all of your payments in one place, allowing for easy bookkeeping.
3. Collect Tax. Figure out the appropriate tax percentage for your location add it to your products and services.
4. Master Invoicing. Choose an invoicing system that has the features that you need while also having the ability to scale for growth.
5. Pay Creditors & Collect Payments. If there is an incentive for paying off your balance earlier, pay early. If you have so paying clients, offer an incentive for early payment or close the time gap for payments (from 30 to 15 days)
6. Keep Contribution/Donation Receipts.
7. Maintain Current Profit/Loss Statements. Profit/Loss statements are the most important statements for business owners and should be updated at least monthly to include any changes in sales, operating expenses, gross margins, and net profit.
8. Streamline Payroll. Payroll tends to cause the most grief in business ownership. Hiring a payroll company or adding payroll software can help simplify your business accounting needs.
9. Separate Your Accounts. Keep your business accounts separate from your personal accounts and reconcile them at the end of the day.
10. Increase Your Gross Margins. Increasing your gross margins can look like discounted rates for ordering in bulk, streamlining products, or offering digitized products—anything that increases sales, while also not increasing operation costs.
11. Triple Check. Go over all of your files and documents monthly, quarterly, and before handing it over to the accounting.
12. Stay Consistent. Create a system routine and schedule for uploading receipts and maintaining your documents and stick to it.
13. Improve Cash Flow. Proper business accounting should improve and optimize cash flow by showing you areas that can be improved upon.
For further advice or help with your business accounting needs contact Northgate Capital Finance today.