7 small business accounting hacks to ensure your success

7 SMALL BUSINESS ACCOUNTING

HACKS TO ENSURE YOUR SUCCESS

IntroductionBecause many small businesses are usually a one-man show, where the business owner does everything, there can be some major problems with small business accounting.

Don’t worry, it doesn’t take a degree to help your small business succeed.

However, you do need to learn some accounting hacks to get the most out of your time. Today we’ll present you our 7 most prized accounting hacks to help your small business succeed.

1. Separate Accounts

You should use a separate bank account for your business to:

• keep track of your revenue and expenses• ease tax document preparation•ensureproperfinancialdiscipline• create more accurate business forecast

Without this separation, your small business will have major accounting and tax headaches.

Whenever there is a purchase, payment, or late payment, you should record it in order to:

• strategic thinking and planning• leadership• people management skills•financialliteracy

Without these, your business will suffer for a long time and then fail.

2. Keep Great Records

3. Use Good Invoicing

You need to use great invoicing, and templates just won’t do. Get online invoicing software because:

• you can create & send an invoice in under 1 minute• you can’t lose them because everything’s on the cloud• you’ll be able to avoid duplicates• you can share invoicing responsibilities

Once you’ve switched to a good online invoicing software solution, you’ll see the difference in your business.

4. Determine Your Taxes

As the owner of the business, you need to stay on top of your taxing responsibilities because:

• it will help you avoid any taxation and legal problems•youmaybeeligiblefortaxbenefits• your account will have an easier job

Lacking appropriate taxation will kill your business sooner or later. Avoid legal and tax authority problems by getting ahead of your tax responsibilities now.

5. & Know the Deadlines

Youshouldneverbelateinfilingyourtaxes,sofirstconsider:

• tax liabilities (tax returns and bills) cannot be overlooked •inordertofilereturns,youneedgoodrecordkeeping• don’t pay the annual lump sum for your taxes• instead, project future taxes and pay throughout the year

Following these steps will help you to not just have good knowledge of your tax responsibilities, but also to take care that you meet deadlines and pay fully.

6. Make P&L Statements

Profit&Loss(P&L)Statementsarethemostimportantfinancedocument your business needs to have:

•theyprovidesnapshotofcompany’sfinances• you can set it for weekly, monthly, quarterly or yearly• set them for logical periods in your business cycle•consistentlycreatethemtotrackyourbusinessfinances

Once you start seeing the snapshots by way of your P&Ls, you’llbeabletohaveabetterideaofyourfinances.

7. Calculate Your Margins

You should know your margins and should be constantly trying to improve them:

•yourmarginrequirescalculatingnetprofitmargin(NPM)•NPM=(Revenue-BusinessExpenses)/Revenue• convert the answer into a percentage

KnowingyourNPMwillhelpyouunderstandwhereyourbusinessisandgetyoutoconsiderhowtoimprovetheNPM.

The Best SME Hack

There is one accounting and general hack that all small businesses must incorporate, and you’re already doing it:

• learning

That’s right, by educating yourself on parts of your business you are not very knowledgeable about, you’re already on your way to becoming a successful business person.

Congratulations.

7 Small Business Accounting Hacks to Ensure Your Success

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