When you’re starting a small business, it’s likely that bookkeeping and accounting are the last things on your mind. Entrepreneurs are full of dreams about the glamorous side of their new business — ribbon cuttings, grand openings, serving customers. But managing your company’s financials is vital to keeping those dreams alive.
Even though bookkeeping may seem like a tedious task, it’s important to start with a plan to make it happen, and stick with the plan. A business startup service can help you develop a plan, or you could partner with an accounting firm to do the heavy lifting for you. However that you choose to handle your financials, here are some common mistakes to avoid if you want to keep your books clean.
When you’re a busy business owner, it’s hard to find time to really take care of business — doing those back-office tasks that take you out of the field or off the sales floor. But, putting these tasks off means that they’ll pile up, leaving you with a huge workload when tax season hits. Even worse, the longer you put it off, the easier it is to lose important documentation or forget details.
Instead, set aside time each week or month to take care of your books. Create a schedule and stick with it, or partner with a professional if you need help.
2. Mixing Personal and Business Funds
Especially if you’re a sole proprietor, it can be tempting to manage your business from your personal bank account. But it really is a bad idea to mix business and personal this way. It makes business bookkeeping and taxes more complicated, and it can remove a layer of protection if your business gets audited or sued.
So, keep those funds separate. Open a business bank account and consider opening a dedicated credit card for your small business.
3. Wasting Time
If you don’t start with a strong, turnkey system for classifying expenses and income in place, your books really will turn into the time-wasting nightmare you’re afraid of. Bookkeeping is an important task, but it can be simplified with proper planning. Getting startup help from a professional and following their advice will keep your books clean and in check.
If you’re opening a business, no matter how big or how small, the Numbers House can help you get started right. Our business startup services will get your doors open with minimum hassle, and our continuing support services can get you out of the back office and doing what you do best. If you would like to learn more about what we can do for you, give us a call at (865) 294-7300 or email us at email@example.com.