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Employing some simple strategies can make managing your small business finances a lot easier.
Managing personal finances can be a chore, so managing business finances is often even more of a hassle. Whether you enjoy bookkeeping, or loathe it entirely, it’s the core component of ensuring your business finances are where they need to be. When you’re just starting out, it can be easy to fall into bad habits. Get your small business started on the right foot and use these tips to preserve your sanity when it’s time to do your bookkeeping.
Have a Business Credit Card
Your business is your baby, so it might seem like it’s not a big deal to put expenses on your personal credit card. The problem with this is you’ll have to sort through all the charges when it comes time for bookkeeping. This could lead to errors which may cause all sorts of problems. It might misrepresent your expenses, causing a flaw in your cash flow chart or making it difficult to file your taxes properly. The best solution is to have a separate credit card that is reserved for business expenses, simplifying the process and ensuring accurate records.
Manage Your Receivables
Receivables, assets and services not yet paid for, need to be constantly managed. While you may be quick to send an invoice, you might settle an account a lot more slowly. Avoid having to match dozens of invoices later on by managing your receivables regularly. This will help you keep a pulse on your receivables cash flow and save you from a headache later on. You might think that there won’t be that many to go through because you’re a small business, but they will pile up quickly.
Utilize Your Accountant
One of the best ways to get your small business started on the right foot is to properly utilize your accountant. Don’t treat your accountant like a hired mercenary. Developing a relationship with your accountant and making sure they have an in-depth understanding of your business will go a long way, especially when you need help. Your accountant is an expert, so don’t underestimate the knowledge they can bring to the table to help your business flourish.
Trust the Professionals at the Harding Group
Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for consultations and strive for open communication with our clients.
Are you interested in business advising, tax preparation, bookkeeping and accounting, payroll services, training + support for QuickBooks, or retirement planning? We have the necessary expertise and years of proven results to help.
We gladly serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of tax time, contact us online or give us a call at (410) 573-9991 for a free consultation. Follow us on Facebook, Twitter, YouTube, and LinkedIn for more tax tips.