There’s a lot to consider when it comes to managing a business.
For most business owners, money is top of mind. Whether it’s payroll, upping the inventory, monthly bills, or new equipment; keeping track of how much they have and where it’s going is constant.
Despite its importance, many owners struggle when it comes to balancing books by falling into bad habits and poor practices. Not only can this cause a disruption in operations but it impacts the trajectory of the business. That’s because not knowing where finances stand can give owners a false look into how their company is doing. In turn, making decisions with wrong projections leads to poor financial decisions.
Given how critical accountant practices are for online business owners, we’ve decided to outline some of our best tricks below.
1. Have a Tax-Saving Strategy
It should come as no surprise that there are many tax-saving opportunities available to business owners. Some tax breaks they could be eligible for include things like business startup costs, supplies, travel, rent, use-of-home expenses, etc.
However, these breaks can change based on the type of business and the current situation (such as location). That’s why it’s important to look into the breaks that are right for your particular industry. Of course, this is best to be handled by a financial professional who will be able to review the current situation to suggest breaks that might benefit your specific situation.
2. Implement Software
As an online business owner, you should be no stranger to tech. So, why stop digitizing when it comes to accounting practices? Not only can an integrated program with a business website keep track of costs, but it can even save tons of time and money in the long run.
That’s because integrated software prevents owners from having to manually track and log every transaction or business deal. It can even organize, prompt, and process the data. Meaning, that at any given hour, owners and employees can easily see where the company stands and compare it against data from other months.
This makes it much easier for owners to track income and expenses to know exactly where they are without wasting time.
3. Back Up the Data
In addition to having integrated accounting software, it is also a good idea for business owners to back up their data in a safe place. For example, having it be centrally stored in the cloud. Having a data backup of all the company details prevents owners from panicking if their original source gets hacked or goes down. Plus, it also allows owners to access the data easily, and from any time and anyplace without having to worry it isn’t accurate.
4. Reconcile Regularly
Being a small busies owner causes some to lose track of their inventory and services. Although this is common (and nothing to be too concerned about), it can give owners false information about where their company’s financials are.
Certain things like bank transactions, withdrawals, or purchases could all have been missed when tracking or gathering data. Further, there could be bank errors, over-charges, or even double-charges if a transaction went through twice in error.
Given these common mistakes, it’s best to reconcile your books regularly to spot the inconsistencies and correct them. Ideally, this should be done monthly by reviewing all of your accounts and attempting to balance the books. From here, you can get a clear picture if there are any issues or transactions that were missed.
For even better results, we recommend using a professional, like us at A.P Accounting and Tax Services. We can be there for owners who struggle to manage their books but who want a clearer picture of where they stand financially.
So, if you’d be interested in learning more, or knowing what services would help you this tax season, give us a call at 407-328-5001.
Image: Unsplash
