When you manage or own a business, one of the biggest challenges is keeping the finances in check. If you’re not organised it’s easy to lose track of expenses and spending, and you can find yourself struggling when tax time rolls around. Being organised and implementing a few strategies will help ensure everything runs smoothly. Here are my top 4 tips for business accounting in 2022:
1. Keep Up With Journal Entries
Keeping a journal can help ensure that all your purchases and expenses are accounted for. This is a great way to keep the flow of communication open between you and your bookkeeper. You can also keep a journal of other expenses such as staff costs, and then of course business sales too. Many companies, such as Gram Tax Accounting, offer bookkeeping services to help ensure your business is keeping on top of all their costs and expenses. Being organised with where your finances are at ensures you can pay your tax bill, take appropriate profits, and reinvest into growing your business.
2. Use an App to Document Receipts
There are so many business expenses that can be extremely varied and hard to keep a tabs on, especially when you’re out of the office such as taking a client out to a lunch or a big purchase. There are some apps you can get such as Expensify which allow you to quickly snap a photo of your receipt and to document them. This makes it easier to keep tabs on everything, to share them with your bookkeeper or accountant and to prevent yourself from losing them.
3. Compare Your Budget to Your Actual Expenses
This is a great way to comb through your business and to see if there are any loose ends that need tying up. For example, maybe you’re paying for a software you no longer use and it’s just stuck on a subscription that’s charging you each month. Maybe you spent a lot more on something than you expected, and you’re going to have to adjust other parts of your company’s spending to stay on track financially. Comparing how your spending compares to your budget is an important part of bookkeeping.
4. Outsource When You Can
Having an expert accountant or bookkeeper help you is a great way to ensure that you’re meeting all your tax and financial obligations. Experts will also know creative ways to work with tax obligations to help save money where you can. If you hire a great accountant, often what you’ll spend in their expertise, you’ll save in tax planning and have the guarantee that your filings have been handled by someone with years of experience.
Ensuring your finances are properly recorded, monitored and reported is an extremely important part of owning or running a business. It allows you to accurately see your company’s financial situation and how much money there is for growth.