Let's say you've just launched your new business and you are excited to start taking in some money. But before you actually open your doors, you should make sure you have a system in place to properly track all money that comes in or goes out of your business. Every small business owner needs to have a least some know-how when it comes to bookkeeping if they want to keep their balance sheet looking good. Here are some tips to keep in mind to get your bookkeeping and your business off on the right foot.
Never Mix Personal and Business Funds
It's true that you might have launched your business with some of your personal savings, but once you actually start ordering inventory and taking sales, it's time to keep your business life and your personal life separated. You need to have a separate business account for your company. If you are going to use some personal funds to get the company off the ground, make sure you are writing a check from your personal account to the name of your business and then depositing the check in a separate account. You also need to put yourself on the payroll and pay yourself every two weeks using the same methods you would use to pay one of your employees.
Cash Payments Need to Be Put on the Books Before You Turn Around and Spend Them
If your store or service accepts cash, you need to make sure that all incoming cash in accounted for before it goes back out to pay your bills. Set up a petty cash fund if needed, and make sure you are documenting all sales that come in through this method. It's all too easy to receive some cash from a customer and then turn around and use that same cash at the supply store down the street. You should never be putting customer cash into your personal wallet or purse as a business owner. Pay it into the petty cash fund, document it, and then you can use it for business use if needed, being sure to document it again as it goes back out.
You Might Want Professional Help
For the best results as a new business owner, it might be a good idea to remove yourself from bookkeeping entirely. You do this by hiring an outside firm or accountant who offers bookkeeping services. This will allow someone else to go over the numbers and take a bird's eye view of your finances. A bookkeeper might be able to notice something that you are too close to the action to see.
To learn more about bookkeeping, contact a company in your area like Tax Specialists Of Northern Colorado LLC.
Share2 March 2020
When you run a business, you need to see the marketplace as a war zone. You need to identify what your competitors are doing, and then work to do it better. You also need to plan ahead, hire good people, and put a lot of resources into good marketing. Of course, this all sounds good ― but actually implementing these practices can be a bit harder. The best thing you can therefore do as business owner is always strive to do better. Learn a little more every day, and then apply what you learn. We want this website to serve as one source of information as you go about your learning.
