Accounting Tips for New Business Owners

Starting a business can be intimidating, especially when it comes to finances. Accounting is often seen as a complex and daunting task, but it doesn’t have to be. Our team of experts have collated their top five tips that every new business owner should know when it comes to accounting.

Establish an Accounting System 

The earlier you establish an accounting system, the better. Whether that means doing your own books or hiring someone else to do them for you, setting up an accounting system from the start will make tracking income and expenses much easier later on down the road. This will also help you get a better understanding of how much money your business is bringing in each month and what kind of profit margin you are working with. 

Separate Personal and Business Finances 

It’s important that you keep your personal and business finances separate from one another. Not only does this make record keeping easier, but it also helps protect your personal assets if something goes wrong with your business venture. Setting up a separate bank account for your business is a great way to ensure that all of your income and expenses are tracked accurately and efficiently. 

Keep Detailed Records  

Keeping detailed records is essential when it comes to accounting for small businesses. This includes keying in data into software programs or using spreadsheets like Excel to track income, expenses, taxes, payroll, etc. It may be tedious work but having accurate records on hand makes filing taxes much simpler during tax season. It also allows you to spot any potential issues before they become bigger problems down the line.  

Research Tax Laws & Regulations                           

Tax laws can vary from business to business, so it’s important that you familiarise yourself with the tax laws where you live if you plan on starting a small business. Doing some research beforehand will help save time (and headaches) later on when filing taxes each year. 

Hire an Accountant       

If managing the finances of your business seems overwhelming, consider hiring an accountant who can help manage things like payroll and other financial obligations while making sure everything stays within budget and complies with local laws and regulations. Having someone knowledgeable by your side can give you peace of mind knowing that everything is being taken care of correctly and efficiently so that you can focus more on running the day-to-day operations of your company instead of getting bogged down by paperwork or taxes due at the end of the year.    

Accurate accounting practices are essential when starting a new business venture, regardless if it's online or brick-and-mortar-based store front operating in person services like restaurants or salons etc.. 

Understanding tax regulations, setting up an efficient system early on, and hiring an accountant if need be—these are just some of the tips discussed above, which all play a key role in helping set up successful financial habits when launching any kind of new enterprise no matter how big or small it may be! 

If you’re looking for guidance on accounting practices for your business, get in touch with Maher Group today!