When you’re an entrepreneur or small business owner, money and finances are often top of mind. Here are 5 bookkeeping rules to help keep yourself organized:
- Separate personal and business funds: We suggest opening a separate bank account for business activities. Having a separate business credit card will also help separate your finances at tax time.
- Be honest with income: If you get in the habit of paying for business expenses from your personal funds, you could be overstating your business income, and you’ll end up paying more taxes. Like #1 above, keeping personal and business finances separate can help alleviate this. If you must use personal funds, keep a clear record of the transaction so you can pay yourself back in a timely manner.
- Organize and track all transactions: Keep track every time money goes in or out of your business using spreadsheet or accounting software. Organize it logically so you can reference any transaction quickly and accurately when needed.
- Get professional finance help: As an entrepreneur, you specialize in your business niche, not necessarily in accounting or bookkeeping best practices. Hire a professional bookkeeper to help and you’ll save time, money, and stress at tax time.
- Checks and balances for data entry: A misplaced zero or period in your accounting can wreak havoc. Have a system in place to ensure you’re entering numbers, currencies, and transactions accurately (this is something a good bookkeeper can help with).
We know owning a small business can be a challenge, but your finances don’t need to be. The team at Dayna Holland Ltd is here to help you every step of the way. Get in touch and we’ll chat about your accounting and bookkeeping needs.