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Small Business Accounting

Planning for the Fall: Small Business Accounting Practices to Keep You Ahead of the Game

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Summer is half over. The days are getting shorter.

Parents are preparing to send their children back to school next month.

This season, as we know it, is coming to a close. Pretty soon, we are all back from vacation, kids have returned to school, Labor Day is over and the next holiday is Thanksgiving, months from now.

The end of summer can be a drag. two men sitting across from one another working on laptops

However, as a business owner, you can do some things now during these low-key summer days, that will benefit you, your employees, your clients and other stakeholders (i.e. The IRS). So, take some time now and do these small business accounting practices that will keep you ahead of the game before the cooler days of fall hit:

  1. Business and Personal bank accounts need to be separated: Much of the confusion and stress business owners have in accounting has to do with bank accounts. If you are using your business account also as your personal bank account, you will run into some serious tax issues that could take many hours and days to untangle when tax time comes around. So, create separate bank accounts for each and save yourself lots of confusion and billable hours with your accountant (or worse, an IRS auditor).

  2. Record bank deposits accurately: Make sure all loans, sales, refunds and other receipts are recorded accurately. You may have to set up a meeting with the small business account specialist at your bank to make sure you are doing it correctly. They can go through each monthly statement with you. Your accountant can also advise you on the best accounting program to use.

  3. Record all business expenses: During a typical business year, your company could be spending thousands (or more) in expenses. From inventory to travel to fuel to rent, there are many business expenses that need to be recorded accurately and backed up with receipts. Make sure you and your administrator(s) are tracking all expenses. Many business expenses are tax-deductible, so failing to record them could be costly.

  4. Bring in an outside accounting expert: Accounting and bookkeeping can be agonizing and time-consuming. So, perhaps, once a month or once a quarter, hire an accountant to take a few hours and review the books. They can make recommendations and corrections, keeping your company on track.

  5. Set aside time for accounting: It all will pile up very quickly and become a monster if you don’t watch out. So, set a day and time each week or month to record and file receipts or visit the bank.

  6. Labor expense tracking: This is the largest expense for most companies. Keep track of hours paid, overtime, bonuses and other expenses to make sure you are paying your employees accurately.

  7. Inventory control: You may have a warehouse full of inventory. If so, take  time to record all of the items in your inventory, including items that are being returned to the manufacturer/supplier.

  8. Meet with your administrator monthly: If your company has a staff member dedicated to accounting, meet with them monthly or regularly to review statements. It may be quite boring to do, but it keeps you and your admin on top of the bottom line: expenses and income. After all, that is why you are in business!

Poor accounting practices have damaged or sunk many businesses. Just doing even a few of these tasks will keep you and your business on track and successful.

A.K. Burton, PC, which serves the Washington,D.C. and Bethesda, Md area, has experienced and licensed individual financial advisers who can help you sort through your bookkeeping. Contact us at (301) 365-1974 for more information or email us at info@cpa-maryland.com.

        

Accounting, Small Business Accounting

Wake up and smell the coffee!: Small business accounting services that your accountant has-and you should be using

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“Shoot, if I had only known!”

How many times have you said that to yourself. If you had only known that your favorite restaurant had a free dessert Wednesday night or that suit you wanted was half price, yesterday, or that the radio station was giving away tickets to your favorite singer’s concert.

Oh, if only…

It’s a familiar lament but, sometimes, there are second chances to great opportunities. Those opportunities missed are aggravating because you realize that you’ve lost out on something beneficial to your life. However, there is a much more important opportunity that exceeds any dessert, suit or concert ticket. We are speaking of small business accounting, of course.

Your business pays the bills and may even be the main source of income for your employees. It is crucial to your life. Don’t take the accounting and bookkeeping services your accountant has to offer for granted.

As any accountant will tell you, you may understand a lot about bookkeeping, but no one knows everything. Leave that to the professionals.   

So, here is a list of small business accounting services your accountant has and you should be using:

  1. Quickbooks Advice: Quickbooks is always updating, changing and upping its game. It is still the premiere business accounting program. Sometimes, keeping up with those changes can be a chore, if not impossible, during your long work weeks. Your accountant must keep up with the updates as they are probably using it themselves! Utilize their knowledge and expertise on this program and all you have to do is call.
  2. Setting up an Accounting System and Structure: Starting a business is a huge challenge and getting the correct accounting system for your business can be agonizing. There are many choices and many different fees. Do you know which accounting system is best? Most business owners and managers are not accountants plus they have too much on their plate, already. So, contact your accountant. They will analyze your business according to volume of business, number of employees and other factors to help you figure out which accounting system is best for your business. Then, your accountant can help you install it and set it up.

  3. Startup/New Business Consultation: You’ve got a great idea for a new business. You’ve done the research and even chosen a storefront. But, how do you get the financing? Hire employees? Set up payroll? Purchase inventory? Those and many important questions need to be answered. Your accountant can help you make all of these crucial, business startup decisions and get the launch of your dream off right.

  4. Record-keeping techniques: It is imperative that your business keep accurate accounting records. You have to deal with suppliers, employees, vendors, landlords, travel agents, garages, the IRS. That’s no small list of people and agencies who depend on your company to pay them. So, use the best accounting record-keeping methods you can find. Your accountant can advise you on what you can use that will be efficient, affordable and can be used by everyone in your company.

  5. Assistance with registering your company with all the appropriate tax authorities: What is an LLC and should your company be one? Which tax authorities do I register with in Washington, D.C., Maryland or Virginia? Or, should I register with all three? Do I need any licenses and permits to run my business? All good questions and they need to be answered. Your accountant can help you register, apply for the correct permits and licenses.

Did you know that these are just some of the services that your local accountant can provide for you and your company, no matter what its size or if it hasn’t even opened its doors, yet?! Like most business owners, you probably didn’t know it.

Running a business is hard work. Don’t make it even harder. Contact your accountant and have them be a partner in your success.      

A.K. Burton, PC, which serves the Washington, D.C. and Bethesda, MD area, provides all these services and more. Contact us at (301) 365-1974 for more information or email us at info@cpa-maryland.com.