Good bookkeeping practices are essential for businesses today. For those who are unaware, this relates to the art of keeping track of all of your company’s expenditures and incomings. This may seem like an easy task, but when you consider all of the incomings and outgoings you deal with, you can see how this can easily become very time consuming, and this can result in corners being cut.
However, bookkeeping is critical for businesses today, as you can see from the infographic below. The infographic reveals five of the key reasons why bookkeeping is so important. This should help you to understand why you have to prioritize accuracy and timeliness when it comes to bookkeeping. A lot of people can neglect their bookkeeping commitments for months on end, and this can have a detrimental impact on their company as a whole.
There are many different bookkeeping practices that you can use in order to get on top of this part of your business. Starting your bookkeeping early is a good place to start. You are also advised to keep your personal accounts separate from your business accounts. Other tips include always keeping a hole of your receipts and updating your records from anywhere through the use of digital bookkeeping software. Of course, if this all seems like a big undertaking, there is the popular option of outsourcing your bookkeeping requirements instead. This will allow you to focus on the main areas of your business rather than worrying about bookkeeping.
So you’ve started a small business, and things seem to be going well! Numbers for the first year look good, and now it’s time to file those dreaded taxes…
…but there’s no need to reach for the antacids just yet. Finding the perfect accounting company for your small business doesn’t have to be an insurmountable task. With just a quick list, you can find the accountant that’s the perfect fit for you.
It seems like a no-brainer, but a lot of businesses don’t actually take this into consideration, and they should. You want an accounting firm that is likable, personable and seems to understand and like you and your business. Of course accounting is a somewhat emotionless job, but that doesn’t mean that you have to settle for an accountant who seemingly doesn’t care one way or the other about your business. Someone who is surly and dispassionate probably isn’t going to go the extra mile to try and save you money.
Picking an accounting company with a team of dedicated, friendly and helpful employees is a must.
You want to pick a firm that has a good reputation among their clients – everyone from small businesses like yourself, to larger ones and even individuals. Do they have a lot of clients? Have they gotten them great returns? Do they have a good rating? You should find the answers to these questions before making any concrete decisions.
When it comes to your business, you can’t be too careful. You want an accounting team who has many years’ experience dealing with businesses just like yours, who know the ropes, the ins and outs of budgets, payroll, taxes and everything in between. These seasoned accountants won’t miss a single opportunity for a deduction or write-off. They know the special laws and guidelines, incentives and work-arounds. The professionals who have been at it for a while are the ones you want.
Fees and Costs
You should be prepared to pay your accountant a fair rate for working on your taxes, especially if you have a lot of paperwork and documents to go over. Doing taxes isn’t a walk in the park, and the costs reflect that.
That being said, some accounting firms take advantage of their clients by charging exorbitant rates, coasting on the hope that their clients don’t know any better, or that they’re so desperate to hire an accountant that they’ll accept higher rates. Don’t fall for it. Take the time to compare various accountants in your area and find the ones that offer fair rates that aren’t overly inflated or full of extra fees and service charges.
Choosing the best accounting company for your small business need not be a hassle or a lesson in anxiety. With so many reputable companies and individuals doing taxes in your area, you’ll have a wealth (pun intended) of candidates to choose from, all offering excellent service and dedicated to getting you every penny they can on that tax return.
When it comes to business, time is money, but, then again, money is also money. If you happen to run out of cash when running a small business, you could be in a lot of trouble, and may even end up going under. Unfortunately, there are lots of hidden costs of running a small business, as well as plenty of obvious ones, so you need to make sure that you save as much money as you possibly can. Luckily, there are plenty of ways that you can do this; Here are a few popular ones for you to try out.
The most obvious way to save money is to actually put some effort into researching where you can get the best rates and deals for the things you need. Often, you can find anything from your electricity to your coffee cheaper elsewhere, so it makes sense to invest some time into getting things for cheaper. However, some things are worth the money. Your insurance is a good example; Never go for the cheapest insurance policy on offer, as this is unlikely to offer you very much protection.
Buy Used Furniture & Equipment
There are plenty of places that you can find good quality office equipment and furniture for a fraction of the price, simply because it’s been sued for a little while by someone else. eBay and Facebook marketplace are two great examples. You can also check out local auctions, car boot sales, and ads in your local newspaper. If you wanted to give back a little, charity shops also stock plenty of great finds.
Rent A Postage Meter
If you spend a large amount of money on postage each month, then you will benefit from renting a postage meter. It will print neat and professional postage for your letters and parcels, which means you can avoid wasting your precious time on trips to the post office every other day. You will likely be surprised how little the postage meter cost is to rent every month; It’s only a fraction of what you’d be paying by visiting the post office to send all of your letters.
If you’re only sending a short message to your clients or customers, such as about a meeting, a conference, appointment, or sale, then there is no point in you wasting paper and money on posting an entire letter. Instead, consider buying pre-stamped postcards from your local post office. You can then simply write or print your message onto these postcards and send them for much less than you would have had to pay to post a whole letter.
Being eco-friendly isn’t just great for the environment, it saves you cash too. It doesn’t matter if the space you use is a home office, a store, or something else, the more energy efficient you can make it, the less you’ll have to pay on energy. Therefore, it makes plenty of sense to go out and buy energy saving light bulbs, instead of keep putting it off. You should also recycle everything that you can; Some recycling centres will even pay you for this. It might also be a great idea to go paperless so that you can save money on paper, printing ink, postage, and much more. Instead, send out emails, and store any important information on your computer, instead of in a filing cabinet (Just be sure to back up your storage!).
Use Own Brand
If you frequently buy something, such as paper, or coffee, then you should look into ways of saving money on this. Shopping around is one way, but you could also try the own brand versions of the products. The box may not look as appealing, but generally, the product inside the packaging is pretty much the same. You won’t notice a massive difference to your savings straight away, but every penny adds up quickly.
Cut Back On Non-Essentials
As well as buying own brand goods, you may want to consider cutting back on a thing or two. If you know that there is something that you definitely need, then, by all means, buy it, especially if it’s necessary for your business to function properly. However, if you’re not sure whether or not to buy something, it makes more sense to leave it for now, and think it through properly before buying it. For example, the carpet in your office may not be in the best shape, but you might not necessarily need a new one, especially if you have all of your important business meetings elsewhere.
Hire Less Experience
It may seem counterproductive to hire employees that have little experience, but it does make a lot of sense. Everyone needs to start somewhere, and if no one ever gave someone that didn’t have experience a job, then no one would have ever been given a job. While someone applying to work for you may not work experience, they may have plenty of knowledge from their education, and a willingness to learn more. Even better than this is the fact that you can pay them less for having less experience, and they will understand this. However, if it makes sense to hire someone more experienced, then you should definitely do that instead.
Get An Accountant
Hiring an extra employee might not sound like the best money-saving technique on the planet, but I assure you that an accountant is absolutely essential, especially if you are looking to save money. An accountant can make your life a million times easier, especially if you don’t have much experience with finances. They can find ways to help you save some extra cash here and there, and will make sure that your taxes are done properly so that you don’t end up with a large and nasty fine.
Running your own small business isn’t easy, and it definitely isn’t cheap, but hopefully, these tips can help you out with running yours. Not everything is going to work for you, but some will work great, so try out a few different ones to see which helps you out the most.