Are you in the process of starting a new business or do you currently own one and are looking to grow it? But do you know what is needed to set up your books?
Accounting is the Backbone to Any Successful Business
When you dine at a restaurant, it’s easy to be amazed at the service and the food’s presentation and taste, however, it’s what you don’t see – like the hard-working staff in the kitchen – that keeps it all moving. That’s how important accounting is as one omission or wrong entry can mean the difference between your business being widely successful, or becoming a financial nightmare.
What does accounting entail?
- Recording expenses and income
- Tracking assets and amounts owed
- Producing Financial reports that tell you a lot about your business
- Assisting you with filing your tax return and complying with federal and state regulations
Setting up Small Business Accounting
If you’re looking to get started on your business’ accounting needs, then here are the first steps that you will need to take to get the ball rolling:
- Open a business account: Set up a business account that’s separate from your personal account to track your revenue and make it easier to plan for the tax season next year.
- Record all income and expenses: Learn how to track all of your business expenditures and transactions. This includes items like invoices, sales receipts, bills, payments, etc.
- Determine how your business will get paid: You can use online tools like PayPal, Intuit Merchant Billing Services, Bill.com, etc., to make getting paid much easier.
- Establish your bookkeeping system: You can track your business financials and set up your accounting system by using software like QuickBooks. Or you can outsource your bookkeeping needs to a third-party firm or part-time bookkeeper.
- Set up a payroll system: Set up your business’ payroll system for both full-time and contract employees.
What Does An Accountant Do?
As you can see, there are many moving parts to small business accounting. It can be time-consuming. At the same time, if you have errors you could miss out on tax write-offs that you can benefit from. If you think this could be too much to handle and you would like to focus more on growing your business instead, then leave it to the experts. An accountant does a lot more than you think, and while they can easily help you handle setting up your accounts, bookkeeping, and even payroll duties, they can also assist in the following ways:
- Assist with business strategy: Accountants can give you key performance indicators (KPIs) to track your progress.
- Fix your cash flow: Accountants understand the ebb and flow of business funds and they can assist you with a financial strategy that will help you monitor your cash needs and balances
- Deal with unpaid invoices: In case any of the vendors you work with are behind on their payments, an accountant can assist with tracking any unpaid debts.
In essence, an accountant can make the life of a business owner much easier on a day-to-day basis. It’s tough enough to have to focus on the daily tasks in keeping the rest of your business running smoothly every day, but much like the busy kitchen staff in a restaurant, an accountant can make sure everything is running well behind the scenes.
Need Some Accounting Support? LTD Global Can Help!
If you just started your business, you don’t need to go it alone when it comes to taking care of your accounting needs. LTD Global has been providing small businesses and nonprofits with accounting services for years and will be glad to help get your business off the ground. Contact LTD Global today for more information!