Starting a new business is exciting! You’ve brought an idea to fruition and you’re ready to start making a profit. But before you do that, you need to think about the accounting side of your business. Here are our top accounting tips for any new startup business.
- Separate Your Expenses—One of the first things you should do is open up a bank account specifically for your business. Don’t deposit funds or incur expenses using your personal checking account. Not only can this get confusing, but you could get into trouble for this come tax time.
- Create a Budget—Come up with a list of your anticipated revenue projections as well as your estimated expenditures. Using these estimations, come up with an operating budget for your business.
- Keep Accurate Records—As a small business owner, maintaining accurate, thorough accounting records is one of the most important things you can do. You may want to invest in an accounting software that allows you to easily document the time, place, and purpose of each and every transaction. Store this information electronically, so it’s easier to get the information you need to claim certain expenses as tax deductions.
- Work with an Accountant—We also recommend partnering with an accountant who can help you keep your business’ finances on track and help you run a successful business. Set up a consultation with our CPA firm today to talk about where your business stands financially.