Small business owners should make it a point to keep personal and business expenses completely independent of each other, recommends Forbes. Recording transactions and paying back personal expenditures complicates bookkeeping needlessly, and it can create significant amounts of extra work.Continue Reading
Although it may be tempting for small businesses to tend to bookkeeping in-house, hiring a professional accountant usually ends up saving the company money, notes Forbes. This is especially important during tax time or when a technical issue arises. Accountants also keep records clean and free of penalties and errors, which saves the business time and money in the long run.
In order to form a concise view of the company's financial situation, spend at least 15 minutes every week manually writing the books with a pen or marker, recommends Forbes.
When tracking business spending, make sure to pay close attention to wages, overtime, benefits and other labor costs that may be overlooked, notes Forbes. Monitoring labor expenditures allows the manager to offer incentives or reduce spending, depending on what is necessary.
It's important to keep track of outstanding debts and invoices, states Forbes. Once an invoice is paid, be sure to mark it as such, and take note of the timeliness of the payment.Learn more about Accounting