Updated: May 6, 2021
Keep your business running smoothly while also planning for your future with these tips for managing your business finances.
1. Keep track of your expense, your money receiving and develop a bookkeeping system
Bookkeeping is the day-to-day process of recording transactions, categorizing them, and reconciling bank statements
The foundation of solid business bookkeeping is effective and accurate expense tracking. It’s an important step that allows you to monitor the growth of your business, build financial statements, keep track of deductible expenses, prepare tax returns, and legitimize your filings. Any expense that is used partly for personal use and partly for business must reflect that mixed-use.
Using accounting software like Quickbooks to keep track of your business payments and your income. With so many options out there, you’re sure to find a bookkeeping solution that will suit your needs.
2. Setting Payroll system
For employees, you’ll have to set up a payroll schedule and ensure you’re withholding the correct taxes.
Choose your payroll service like ADP, Paychex, Pay entry to support your business
3. Sale Tax Procedures
The world of eCommerce has made it easier than ever to sell to customers outside of your state and even your county. This is a great opportunity for growth sales, in contrast, it also introduces confusing sales tax regulations. Depend on which state, the city that customers purchase products, they have to pay tax on that state.
And for Tax obligations, it’s vary depending on the legal structure of the business. If you’re self-employed (sole proprietorship, LLC, partnership), you’ll claim business income on your personal tax return. Corporations, on the other hand, are separate tax entities and are taxed independently from owners. Your income from the corporation is taxed as an employee.
4. Improve inventory accuracy
Inventory accuracy is essential during uncertain times. Some types of businesses are overwhelmed with excess inventory, while others are trying to keep up with customer demand. This can lead to low sales, affect customer experiences, and financial instability if businesses don't know what they have in stock.
Many businesses have multiple sale channels to reach more customers. The problem is inventory can’t be properly tracked with multi-channels. By using inventory management software that automatically connects your in-store and online catalogs. That can save you so much time instead of counting it manually. And you need to reconcile inventory by the end of the month with your warehouse to know inventory software is still running smoothly
If you, as a business owner, see that you cannot handle accounting on your own, consider hiring an accountancy service for contractors to help you with it.
Call Irvine Bookkeeping now for a Free Quote!