Last week we started sharing a series of tips to help keep your small businesses accounting under wraps. Keeping track of your financial situation is an essential part of making sure your business stays on track. Not only do you need to be sure you’re making a profit as best you can, but you need to keep track of your financial information for tax purposes. To help you build a better business, here are five more tips to help keep you going.
Plan Time To Do Accounting
One of the biggest mistakes that small business owners make is to forget that they need to budget time for their accounting. Taking care of your books takes time, and many people forget how important it is. Scheduling time to do the work will help keep you on track.
Track Labor Costs
When you need to pay yourself and employees, it can be easy to lose track of how much you’re spending each pay period. The average small business spends about 70% of its budget on staff pay. Keeping track of this data can help you avoid under-paying and help you be more prepared.
Be Prepared For Major Expenses
No matter what industry you’re in, there always comes a time when you’ll have a large, unexpected expense. Being prepared can save you from major turmoil when crises arrive. Whether you need a new computer, a piece of equipment fails, or if your company vehicle breaks down – having a savings account will help get you back up and running faster.
Maintain Your Records
Did you know that theft costs US businesses over $50 billion a year? If you keep your books will organized, you’re less likely to have issues and are more likely to be able to recognize theft. Once you are able to stay more organized, you can track patterns in theft and help avoid them.
Follow Up With Invoices
Having invoices sent and projects finished doesn’t mean you’re sure to get paid. Make sure to continue to follow up on sent invoices until payment is received. While this can be tough, it’s also critical to ensure you’re getting what you’re due!
trust the professionals at the harding group
Unlike other accounting firms, The Harding Group, located in Annapolis, MD, will never charge you for emails or phone calls and will strive for open communication with our clients. Whether you are interested in business advising, tax preparation, bookkeeping and accounting, payroll services, Training + support for QuickBooks, or retirement planning, we have the expertise and years of experience to help. We serve clients in Annapolis, Anne Arundel County, Baltimore, Severna Park, and Columbia. If you are ready to take the stress out of taxes, contact us online or give us a call at (410) 573-9991 for a free consultation. For more tax tips, follow us on Facebook, Twitter, YouTube, and LinkedIn.