When starting a small business, there are a lot of details that need to be done. Bookkeeping is an essential part of small business tasks during the day. I know it’s not glamorous. It’s not even fun to do. But, to save you money and stress during tax time, getting your small business bookkeeping in order will significantly reduce both of these things. Below we are sharing seven startup bookkeeping tips every owner should know right from the beginning. Follow along and take notes.
Seven startup bookkeeping tips you need to do to get your business off on the right foot.
Keep your business account separate from your personal account. By doing this, from the beginning, you will have all your transactions separate from any business accounts. If you haven’t done this yet and started your business already, create separate account names or categories under the parent account name like “Business” in your accounting software. Then, create additional subcategories/subaccounts under the main account name.
Pick a bank you like, not just because it is close to your home. Just because it is close to your home or office doesn’t mean you need to use them. Ask about their business services and determine if what they offer will work for you. If you have a personal account at the bank, ask them about the business account and how online mobile banking works with your personal login.
Create a bookkeeping routine each week to do deposits and other bookkeeping tasks. Keeping your online bank register and accounts updated regularly will allow you to see where the money is going. Skipping a week may be an issue, especially if you have several transactions throughout the month.
Know your business expense deductions. Below is a list of home office deductions that will help you. Read more for details and learn how to make a tax return deduction organizer.
Visit the IRS’s website about Deducting Business Expenses for other deductions details about U.S. Business deductions.
Find an accountant that you trust. Visit this article I found on the New York Times online: How to Find the Best C.P.A. or Tax Accountant Near You
Find a payroll service company that is organized and responsive to your and your business. Visit our post about how to pick a payroll service for more details.
Create the right categories for your particular business. Feel free to visit the basic list of accounts (categories) you can use in your bookkeeping management app or spreadsheet by clicking on the image below.
Feel free to share this image with your other small business startups!
I hope these startup bookkeeping tips help you get your business organized and ready to serve the public.
If you want more additional information and tips, feel free to visit these posts I found online below.
Do you have any startup bookkeeping tips you want to share? Feel free to add them to the comments section below. We would love to hear from you.