Save money with these small business accounting tricks
For most small business owners, the word ‘accounting’ makes them nervous. But ignoring the numbers side of a small business is the No. 1 cause of business failure. I know this to be true as I have owned a bookkeeping firm for over 22 years.
All of this can be avoided by simply creating positive accounting habits to conquer the fear. It doesn’t have to be difficult, even if math is not your strong suit.
6 easy small business accounting tips
Here are six tips and tricks that I share with my clients so that they can save money and succeed in their businesses.
- Track all your business expenses.
- Keep copies of your receipts.
- Create a budget for your business.
- Look ahead.
- Pay credit cards in full every month.
- Take your profit first.
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1. Track all your business expenses
In order to write off business expenses, a small business owner must track all their spending. You can do this by using accounting software, an Excel workbook or even by hand using manual ledger books.
The more business expenses you record, the less money you will pay in taxes.
As you track your expenditures, you will begin to see where you may be overspending in your business. The simple act of watching your spending will help you be smarter about how you use your money.