FIVE BOOKKEEPING TIPS FOR SMALL BUSINESSby BT Consultantancy Business and Corporate Consultancy
Introduction: - Bookkeeping means keeping the records of all the financial transactions of a business, it may be major expenses, the salary of the labour, taxes, etc. Bookkeeping may not sound attractive to you if are not good at financial calculation. But being a business owner you cannot ignore it. It helps you to keep you updated about the path where your business is going, whether it is going in profit or loss. With the help of bookkeeping services for small business, you can manage your business easily and efficiently. So being a small business owner you must develop the habit of bookkeeping services for small business whether you like it or not.
Most of the successful business owners in the world put up part of their success to excellent record keeping. They track every expense and every deposit that the business demands and minimize unnecessary costs hence lower the cost of running the business. On the other hand, having good financial records will help you in a tax deduction, so paying the lower taxes helps in increasing the income.
Here are five bookkeeping tips that you can follow:
1. Maintain business and personal finance separately: The most common mistake in small business bookkeeping services for small business is the mixing of expenses and personal income together, which will cause a huge headache in long run. It will not only separate your personal and business account but also enhance the credit rating of your business.
2. Keep records of business expenses: It is hard to track all the expenses together, which means you might miss the tax deduction that will consider a loss from a business point of view. The best solution to this problem is using a business credit card for all the expenses, and the statement of your credit card will be helpful to keep all your financial expenses together. But keep yourself updated with the payment date, and make your payment regularly on time. As if you pay interest on that expanse it will further consider as a loss of income.
3. Keep the records of deposited amount: This is the most important point of bookkeeping software also payroll outsourcing services Singapore. But this needs to be taken care of efficiently, that what is being deposited in your business account on regular basis.
4. Keep the records of your invoice -Being a business owner you should be aware of the fact that late and unpaid bills will impact your cash flow, due to which your running business may get affected if you do not have enough backup cash. You can set a deadline also to their client to pay their previous orders if they fail you can charge a penalty at your convenience.
5. Keep aside money for taxes: Tax deduction will be one of the most important parameters which will decide the actual income of your business. The lower taxes you pay, the higher the income you generate. In this generated through your business, keep the money aside for the taxes as unpaid taxes will incur penalties. Discuss with your financial advisor and file your ITR on time, to avail the tax benefit on your expenses.
Conclusion: - So making a habit of bookkeeping will help you to grow your business. With the help of it, you can get a tax benefit and increase the income of your business payroll outsourcing services Singapore. It will also increase the credit rating of your business, which will help you to get a business loan easily from a bank if required. Hence if you want to a successful business owner, make a habit of bookkeeping.
Created on Apr 8th 2021 05:35. Viewed 22 times.