Start your business accounting like an expert
When starting your own business, you will face many challenges while taking care of many tasks, from administrative activities to the dreaded accounting, but rest assured, in My Accounting Now we understand what you are going through. We are a company specialized in accounting, widely experienced performing this process. Here we have for you 6 tips that will help you start the accounting of your business, and even more importantly, keep it up to date and organized.
The key to have an efficient accounting in small business, is to keep it up to date. It is a necessary task that will help you manage and track money movements. In our blog “Why to keep your bookkeeping up to date” we mention reasons why recording each accounting movement is very important. Without further ado, I will give you 6 tips that for My Accounting Now are essential when starting the accounting of your new business.
Open a business bank account: Once the company is registered, it is important to separate personal and commercial finances. I will avoid future confusion, when tax season arrives, making it easier to file the income tax return with the IRS.
Choose an accounting software: Nowadays, it is obsolete to keep the accounting on paper, currently in the market there are several options that facilitate the digitization of the finances of your company.
Organize the chart of accounts: Defining the chart of accounts that will be used to record each movement will allow you to be better organized. The accounts needed will depend directly on your main economic activity, since a company providing services does not use the same ones as the one that sells or manufactures products.
Record every accounting move: This step is one of the most important. As an owner, you have the option of keeping records yourself or hiring an independent company or accountant. Whichever option you choose, it is of the utmost importance that your ledgers are always up-to-date.
Know your tax obligations: All companies must be up-to-date with their tax obligations before the IRS and the department of Revenue. The type of taxes to pay will depend directly on the structure and services provided by the company. It is advisable to always have the assistance of an accountant, you will eliminate errors when filing your return.
Evaluate the growth of your business over time: Growth is the goal of every business, and growth means change. You must analyze the financial reports periodically, knowing this information allows you to redirect strategies and activities if necessary.
We know that the first years in business are unpredictable and sometimes overwhelming. Having the support of professionals who guide your accounting processes will enhance your growth and reduce your workload, allowing you as an owner to focus on areas directly related to your main activity.