Are you a small business owner? If so, you are more than likely familiar with the stress related to running a small business. You are required not only to be available to answer questions pertaining to the day-to-day activities of the business, but you are also required to keep an eye on your business’ finances and plan for the future. It’s a hard job, but somebody’s got to do it…right?
While we cannot assist with the day-to-day tasks or make the hard decisions for you, we can offer some tips designed to help improve your finances. Our Washington DC CPAs and business advisors meet with business owners like you every day to provide financial services to their companies, and we receive a countless number of tips from our time meeting with them. Keep the following finance tips in mind as you continue on in your business ventures:
- Always keep your finances in order. This may seem like a no-brainer, but you’d be surprised at the state of some companies’ finances. Make sure that you are maintaining your finances effectively and have someone who is keeping an eye on the financial status of your company. Hiring a CPA or accountant to perform crucial financial services would be a smart move if you do not have one on staff. Remember that potential investors will want to take a look at your company’s finances, so don’t let this area slide. Maintaining your finances now could make you more attractive to investors, not to mention that it will set up business up for future success.
- Minimize financial risk. Minimizing risk is essential in financial management. Make sure that your most important and valuable business items are well-insured, and evaluate all financial decisions prior to making them. Make sure that your financial records are well-maintained so you have the knowledge you need to make all financial decisions.
- Maintain separate personal and business financial accounts. Maintaining boundaries where money is involved is always a good idea. Consider separating your personal and business bank accounts. This will not only be helpful when it comes tax-time, but it will also be useful in maintaining your company’s finances.
- Record all of your transactions. This is bookkeeping 101. If you haven’t been recording all of your transactions from Day 1, it is time to start now. It is crucial to be meticulous about your financial and business records so you can answer any and all questions about your company’s finances. Maintaining good records will help you with taxes, running your business, and investing in other business ventures. Make sure you write down (or input into your accounting system) everything. Don’t leave any financial questions unanswered and don’t set yourself up for an audit by maintaining poor records.
- Remember to file your taxes quarterly. Self-employed business owners have different tax obligations. Rather than filing once a year, small business owners are required to file their federal and state taxes quarterly. Don’t make the costly mistake of filing only once a year. Figure out what you owe every quarter, and remember to put the money aside prior to its due date. Consider your tax bill as simply another bill you have to pay and – if it helps – invoice yourself regularly so you remember to put the money aside.
Stay tuned to our blog for more important small business tips from business owners just like you. If you are looking for financial services for your small business or simply need an accountant to come alongside you, contact us today. We offer many financial services to businesses just like you and would be more than happy to answer any financial questions you have regarding your business.