Starting off on the right foot is important in everything you do – your first day of school, a first date, and the first day your small business opens its’ doors, whether they’re brick and mortar or virtual. And while your excitement and enthusiasm may tempt you to hit the ground running, it’s important to step back, take a deep breath, and make sure you have all of your ducks in a row; especially when it comes to your small business’ accounting solutions. While your inner child may think that’s lame, the grown-up you will jump for joy come tax time. photo credit: chumpysclipart.com
Accounting solutions for small businesses include much more than solid accounting software and a CPA on speed dial. Whether you’re just starting out, or suspect it’s time to get your accounting act together, take a look at our handy checklist to see if your small business is on the right track.
1. License and registration, please.
Is your small business in compliance with all of your city and state’s licensing regulations? Sounds like a small thing, but – oh, wait. No, it actually sounds pretty important. The last you want is to be rolling along, keeping track of absolutely everything, and putting time and energy into accounting solutions that aren’t in accordance with local regulations. Since growing up means following the rules, no matter how much paperwork is involved, set aside some time to thoroughly research what’s required to get your small business on the good side of the law.
2. Open a big boy (or girl) bank account
If your small business staff is comprised of, well, you, you may be tempted to implement these accounting solutions into your personal financial practices. While it may seem easier to view all of your financial transactions in one place, it’s better to heed the sage advice of 90’s rock band, The Offspring; “You gotta keep ‘em separated.” Opening a separate business account lets you track each of the transactions related to your business, make accounting and bookkeeping a cinch, and makes for easy scanning into your online Shoeboxed account.
3. Who do you think you are?
Accounting solutions can oftentimes be a matter of common sense, but many small business owners get confused when trying to decide what type of small business they’re running. Do you work well with others? Is your small business a partnership, a corporation, or a sole proprietorship? Accurately declaring who you think you are is extremely important for tax purposes. If you’re unsure or fail to fill out the proper paperwork that defines your small business, you will automatically be considered a sole proprietorship. And if you’re, um, not, you could find yourself in a sticky situation at the end of the year.
Starting a small business, or revamping your current endeavor, is an exciting time in any business owner’s life. With all the virtual accounting solutions now available online, there’s no excuse for neglecting your bookkeeping duties. Think of it this way – if you finish all your homework and eat your vegetables, you can stay up late playing Super Mario Brothers! Get those forms filled out, bank accounts open, and accounting solutions in place. Then sit back, relax, and reap the benefits of your hard work.
Are you a small business owner that got started on the wrong foot with your accounting solutions? Tell us how you turned it around below!