Free Credit Score
Loan Officer Profile
Change email address
Accounting — it’s every entrepreneur’s favorite topic. Or, it’s at least a subject that every business owner has to think about. Ideally, you have a good handle on accounting principles and the methods for staying on top of your company’s financial health.
Accounting involves recording, categorizing and analyzing a business’ financial details. It’s essentially “the language of business” because it provides essential information about the company.
Accounting is vital because it enables business owners to comply with tax and other financial requirements and enables them to make informed business decisions. Even if you have an accountant or bookkeeper dealing with your daily number-crunching tasks, you still should understand the fundamentals of your company’s finances.
Business accounting software comes with many different functions, from tracking income and spending to running payroll for employees. At the very least, you need to be able to invoice customers and receive payments, as well as have a way to track it all. You also want a method for monitoring the overall financial health of your company.
Technology is your friend in this endeavor. But with so many tech tools for business accounting on the market, it can be tricky to choose the best one. Before you begin your search, make a list of the things you want your accounting solution to do, ranked in order of importance. Consider the following:
Once you know what you want in an accounting software package, you’re ready to start your search. Here’s a handy list of some of the best small business accounting software options on the market to help you decide. Check out the features, cost, and the pros and cons of each solution to help you narrow down your search.
Keeping business and personal finances separate is the No. 1 rule for new business owners — even for a freelancer launching a side gig as a sole proprietor. Before you invoice your first client for a product or service, you should set up a separate bank account under your business name — or under your personal name if you’re a sole proprietor. Use this account for any money coming into your business or funds you spend on business needs. If you want to use any of your business money for personal affairs, transfer it into a personal account.
Maintaining this separation is essential not only because it allows you to accurately track the finances of your business, it also eases your business tax payments, enables you to track business write-offs, facilitates any audits you might undergo and discourages you from spending money you need for your business on personal whims. If you are planning to use accounting software, chances are you can link it to your bank account — a function that benefits you only if the account is dedicated to your business.
Here are some valuable tips and tricks to keep in mind when approaching your business’ books.
November 12, 2018
For the average business owner, do-it-yourself accounting can be overwhelming. There’s the jargon to decipher and the pressure to get it right. Add in any math anxieties and you might …
Read More »
October 2, 2018
Being a business owner can feel like you need to be an expert on every aspect of your company—marketing, sales, accounting, logistics, social media, law, human resources. But there are …
October 1, 2018
If the day were comprised of 25, or even 30, hours, that still wouldn’t be enough time for many small business owners to complete everything on their daily to-do lists. …
September 19, 2018
While standard accounting software works well for businesses in most industries, there are some fields where specialized software may make bookkeeping much more streamlined. The trucking industry is a good …
September 14, 2018
Running a business in itself a balancing act. But there’s one more task every small business owner should be doing that actually includes the word “balance:” Creating a balance sheet. …
September 13, 2018
Like with many jobs, bookkeepers wear many hats. Their day-to-day work can differ depending on the type of industry they are employed in. That said, there are a few general …