Hey there, small business owners, it’s time to learn about accounting basics! As we all know, accounting can be an overwhelming and oftentimes a boring task. However, it’s definitely not something that can be ignored if you want your business to be successful. We’ve narrowed down five basic principles that all business owners should follow.
Your accountant may be a superhero, but they can’t work magic, so try to keep your personal funds out of your business transactions. This one might seem like a no-brainer, but when it comes to accounting, cash is the worst kind of payment method since there’s no proper record of the transaction.
There’s nothing worse than having a business expense and not being able to prove it. This means lost money and frustration for both yourself and your accountant. If you have digital receipts, create a folder for all of the pdfs so they don’t get lost in your hard drive, and remember to always save those pesky pieces of paper.
Doing this is like getting a stylish new pair of glasses – it makes your vision clearer..legally-speaking. Incorporating your business helps to clarify your business vision, goals, and legal obligations in a formal way. This way, you can focus more on the growth of the business rather than worrying about legalities.
#4: Learn to read your financial statements
This means you need to be able to glance at a
balance sheet, income statement, or
cash flow
statement in order to make informed choices. This ability also allows you to understand your
hiring, cash flow around large business purchases, and the need to downsize or grow. Don’t be afraid to use your resources or ask for help if you need it!
Here's What We Can Do For You
Business Accounting Services
Your books are the foundation of your financial value stream. Make certain that they are clean, clear, and complete.
Partnering With You To Help You Through Your Toughest Challenges.
CFO strategy provides the seeds to fuel growth and the underlying pressure to drive consistent execution.
Plan, Execute, Measure, Adjust & Repeat.
Financial Planning & Analysis starts with business strategy, robust accounting, and cadence in reporting.
Ensuring Efficiency, Compliance, and Growth With Your Tax Plan.
Tax strategy brings the planning pieces together in a way that keeps you in compliance and maximizes tax savings.
AppStream Powered by GrowthLab
We work with customers and accounting firms to improve access to data, increase efficiencies, streamline processes, and ultimately move them toward their vision of where they want to be.
This way, you won’t be left wondering if your clients owe you money or not. Collecting past dues from clients is a struggle all business owners face, and there’s no secret to getting them to pay up. However, maintaining good communication and reminders can make all the difference.
There ya have it -
five accounting basics
for all you small business owners out there. Remember, don’t let accounting be a bore -
embrace it
and your business will thank you!
GrowthLab is your Finance-as-a-Service partner
that serves Founders and Management Teams with