Whether you’re a freelancer or a small business owner, accounting is a crucial part of measuring your success. Before your operation grows too much, it’s essential to create a solid framework for managing your finances. Doing so will enable you to scale your business with greater flexibility since you’ll be able to clearly see how much you owe, how much money your company has earned, and track incoming payments from clients with ease.
If your accounting habits are a little haphazard, you’re not alone. It’s not uncommon for busy entrepreneurs to put off the boring and time-consuming tasks associated with accounting and bookkeeping. However, there are some small changes you can make to start streamlining your accounting system this year. Here are our top recommendations:
- Make sure to keep your personal finances separate. Your personal bank account and personal financial information should be kept completely separate from your business accounts. This will greatly simplify things when tax season rolls around, and it will help you get clearer insights about the state of your company.
- Send client invoices promptly. If your job involves working with lots of clients one-on-one, make sure to send them invoices for the services you provided within a day or two. You definitely don’t want to forget to bill a customer for a job you completed!
- Consider hiring a bookkeeper or an accountant. If your bookkeeping system is non-existent or in complete disarray, a bookkeeper or accountant can be a lifesaver when it comes to recording and organizing your day-to-day business transactions.
Reach out to our team to connect with a certified public accountant today!