Hi, I’m Jacob Zhang with Ivy Accounting Tax
& Advisory. We all know very well all that running a small
business is hard work. As your business grows, managing your finances
properly becomes extremely important. Today, I’m going to share with you 5 tips
to help your business succeed when it comes to accounting.
#1. Keep your business and personal expenses separate.
While it’s possible to pay back your company for business expenditures, keeping separate
bank and credit card accounts will save you hours of work and help you keep track of all
your tax deductible expenses in one place. #2 Do not make the mistake of doing your own
taxes. Small business owners frequently save money by relying on computer software to take
care of their taxes. While this might seem cost effective in the short term, not hiring
a professional can cost the business owner down the road due to unclaimed deductions
or underpayment which can lead to audits or penalty.
#3. Expect the unexpected when it comes to expenses. When starting a business, it can
be difficult to predict future expenses such as equipment repairs or software upgrades.
In any business, try to leave a solid buffer for expenses in the long term.
#4. Do not underestimate employee costs. Employees are very likely to be one of your biggest
assets as well as expenses. When hiring, remember to consider the costs of payroll taxes as
well as insurance and health coverage. And finally, don’t forget to get paid! This
may seem obvious, but you will be surprised at how many small business owners don’t properly
track invoices and customer payments. If you’re not keeping records, it could be months before
you realize you have outstanding invoices. I hope you have found these tips to be helpful.
If you have any questions or feel the need to get some professional advice, give us a
call. Thank you for watching. For more great tips,
visit us online at Ivy-cpa.com.