Accounting For Small Business

Understanding The Financial Process

When doing your accounting for small business, how well do you understand the terminology and processes involved in maintaining your business financials?

Accounting For Small BusinessAccounting For Small Business

As a small business owner, it is very important to understand how accounting & bookkeeping tie into your everyday operations.

Keeping track of your profits and deductible expenses will indicate how well your business is doing and what you need to do to improve.

Even if you are able to hire a bookkeeper or accountant to handle your finances, it’s good to have a handle on the basics of small business finances.

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Accounting For Small Business: Know The Processes And Terminologies Involved In Maintaining Your Company Financials

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Accounting For Small Business: Know The Processes And Terminologies Involved In Maintaining Your Company Financials

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Accounting For Small Business

When thinking about your small business accounting, there are many factors to consider. Like, what kind of business structure do you have?

This will make a difference on the different types of business bookkeeping principals your will be using as well as the different types of business skills and bookkeeping services you may need.

This will also be important with regards to setting up a business plan how you will go about handling your business taxes. 

Business Structure

Choosing the right business structure can be a difficult task when doing accounting for small business. To assist taxpayers who are starting their own business, the Treasury Department releases a fact sheet that lists the differences between the most common forms of business entities.

They advise that each business structure should be evaluated from a tax, liability and record keeping perspective.

The fact sheet summarizes some of the important traits of the four most commonly utilized business entities operating in the U.S. today:

  1. Sole proprietorships
  2. Partnerships
  3. Corporations, including Subchapter S corporations (S-corps)
  4. Limited liability companies (LLCs)

Read More On How To Choose The Right Business Structure

Business Bookkeeping Principals

As a small business owner, it is very important to understand how accounting & bookkeeping principals tie into your everyday accounting for small business operations.

Keeping track of your profits and deductible expenses will indicate how well your business is doing and what you need to do to improve.

Even if you are able to hire a bookkeeper or accountant to handle your finances, it’s good to have a handle on the basics of small business finances.

Learn More About Business Bookkeeping Principals

Business Skills & Bookkeeping Services

If you are asking what business skills and bookkeeping services have to do with each other, then you are asking a great question that I would love to answer.

Many years ago during an intense conversation with one of my mentors she advised me to always remember that there is only one constant; and that constant is that everything around us are changing.  

That is so true. You just have to think of all the changes to the tax code every year to realize why I, as an Enrolled Agent and bookkeeper, regard continuous learning as one of the most critical business skills and bookkeeping services for business owners and business professionals. 

Read More About Business Skills & Bookkeeping Services

Business Plan Advice

Accountants are forced to handle a growing number of accounts, but few of them are looking for ways to improve efficiency. 

Ken Brown, the executive director of the IFO, said that their unwillingness to adapt is creating a massive backlog for accounts payable professionals. He said that even though many invoices are prepared electronically, the majority of bookkeeping and accounts payable professionals enter the data manually.

A surprising number of businesses still receive paper invoices. Brown said that thre27% of businesses receive 90% or more of their invoices on paper, while only 9% receive an equivalent number of electronic invoices.

Here are some business plan & bookkeeping tips every bookkeeping and accounts payable professional should consider.

Get Valuable Business Plan Advice

Small Business Tax Services

The Sonoma County Economic Development Board is trying to expand the tax credits available to local businesses.

They have introduced some new tax credits that were made available under the California Competes bill, which was passed by Governor Brown.

Under the new program, business owners would be eligible for up to $31 million in tax credits. However, many companies may need the assistance of local tax experts to navigate the new systems.

Learn About Small Business Tax Services

Business Planner

There are many independent business contractors who use planners to keep track of important dates and client information to have within arm’s reach to reference back to.

So to all of you business owners or employees who only rely solely on your brain, or the calendar in your cell phone; it’s time to stop!

If your cell phone dies, or the awful chance that you misplace it without backing it up to the iCloud, you will lose all of that valuable information in the blink of an eye!

Save yourself the hassle, and invest in a hard-copy planner that organizes all of the new incoming information. It can easily be edited and updated, and in the long run, save you extraordinary amounts of precious time.

Get Your Own Organizational Business Planner

Online Business Bank Account

Opening an online business bank account that is separate from your personal financial assets is one of the first steps you should take when starting a new business.

It is very important that you maintain separate personal & company assets and stay away from what is known as co-mingling as a business owner when doing your accounting for small business banking. 

This is to ensure that you will not have any problems and will be more audit proof when it comes to doing your taxes.

Read More About Opening An Online Business Bank Account

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