Keep Your Business Profitable: A Guide to Small Business Accounting
Your business’s financials are the key component of your success. Being aware of your income and expenses and understanding how they impact your business is important. However, for someone without a strong background in accounting or bookkeeping, the process of understanding financials can be difficult.
Small business accounting is the practice of tracking and assessing the financial performance of your small business to understand your profitability and business success. By having a strong understanding of your finances, you can make decisions that ensure long-term success and profitability for your business. If small business accounting is outside your comfort zone, you can partner with a bookkeeping and accounting firm to meet your needs.
What is Small Business Accounting?
Like any form of accounting, small business accounting helps you understand what money is coming into and going out of your business, which can help you better understand your business needs and what actions to take to meet your goals.
Compared to traditional accounting, small business accounting is specialized for the unique needs of a small business. A specific small business accounting partner like KeyLin Advisors can offer you more personalized attention, answer your questions, and collaborate with you on your accounting needs.
We understand the pressures of running a small business, and we strive to reduce the stress of unclear, disorganized, or unreliable accounting by providing detailed, up-to-date, and jargon-free financial updates.
Top 7 Steps for Small Business Accounting
Small business accounting is an important part of your business’s financial health, but it isn’t the only part. Whether your business is a brand-new idea or you’re ready to take the next step into growing and organizing your business, here are seven steps you can take to make your small business accounting journey easier.
Collaborate with a Professional — The best step to take for your business’s financial health is to work with a professional. They will understand best practices, laws, and regulations, and be able to help you establish systems and procedures for long-term financial stability. As an added bonus, the team at KeyLin Advisors is eager to share what we know with you, so you better understand your finances, too.
Open a Bank Account — Your business will rely heavily on accurate financial information, and that starts with having a bank account. Having a distinct bank account for your business will allow you to track income and expenses, and will make your taxes easier when the time comes. Plus, depending on the type of business you have, this is legally required.
Track Everything — From income to expenses, every cent that comes into and out of your bank account is important. Having this information will allow you to grow your business, do your taxes, file for loans if needed, and more.
Find an Accounting Partner — For all the ins and outs of your business’s finances, a qualified accounting partner like KeyLin Advisors will be an invaluable resource. Whether you want to calculate your gross margin or need to prepare for an audit, our team has ample qualifications and experience that we’re happy to share with you.
Set Up Your Bookkeeping — Formalize your tracking systems as soon as you can by establishing bookkeeping. This keeps your financial records accurate and organized, so you can access updated information whenever you need it.
Get Ready for Payroll — Even if you don’t have any employees now, collaborating with a payroll service can ensure that you will be prepared for them when your business grows.
Prepare for Tax Season — As many small business owners can tell you, the best way to prepare for tax season is to prepare all year.
Prepare for Tax Season — As many small business owners can tell you, the best way to prepare for tax season is to prepare all year.
Where Do I Start?
If you’ve decided an accounting partner is right for your business needs, start by researching accounting partners that specialize in small business.
At KeyLin Advisors, we understand small business owners’ unique needs. Our qualified team has ample experience across the industry, so we can answer almost any question you have about your accounting or bookkeeping, from legal requirements to best practices. We’re also eager to share our knowledge we know with you, without using jargon, so you feel confident you understand your business’s finances.
Our collaborative approach ensures that you understand your business’s finances, so you can make the decisions that work best for you. You’ll be able to access your books any time you want, from anywhere you are, using our online bookkeeping and accounting platforms. With reliable, on-time updates to your financial statements, you’ll always be prepared for whatever comes next for your business, whether you want to take out a loan or hire a new employee.
If you’re still not certain that outsourcing your accounting and bookkeeping services is the right choice for your business, take a look at this article about outsourcing for our perspective on how outsourcing can help simplify your finances and drive business success.
Your Small Business Accounting Partner
Partner with KeyLin on your small business accounting to be sure that you’re working with an accountant who can address your unique needs as a business owner and collaborate with you on establishing the systems and processes you need for long-term success.
Your first consultation is always free. Schedule now to get started.
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