How To Manage Small Business Finances – No Hassle Accounting
As an entrepreneur or small business owner, keeping track of finances is key to running any successful business. Not only is this a powerful performance measure but can help you keep track of your day to day finances. Moreover submitting your taxes is mandatory and something a vast majority of small businesses struggle with – nobody wants the tax man knocking on their doors now do they? Hopefully after exploring these top steps below, you will find the managing finance process a breeze.
1.Get Your Business Registered
The first steps to take once you launch your business is registering that business for tax purposes. You can register either as a sole trader(for one man businesses), a partnership (if you are two people going into that business together) or a Ltd Company (Private or Public Ltd Company). Registering as a sole trader is the easiest option as you don’t have to deal with a lot of complicated paperwork upfront and you only have to worry about submitting your self assessment taxes once every year.
2. Open A Business Account
Now your business is registered, its time to register for a business bank account. Having a business account will separate your personal and business transaction and make managing finances a breeze. The last thing you need is confusion on what was spent on what and where your business cash ended up. You don’t need to specifically open a business account. You can actually open another separate personal account, then use it for business. The idea here is to separate business from personal!
3. File Your Paperwork
If you work from home like most entrepreneurs do, then finding that extra space to file your paperwork could seem rather complex than normal. But it really shouldn’t be! Now we all have an empty shoebox lying somewhere around our homes. Guess what you could use this as your cabinet to file your invoices, receipts and paperwork. Remember to organise your paperwork together to avoid any misplacement of important files. So what exactly do you do with this paperwork?
4. Get A Bookkeeping Software
Once your paperwork if filed, its time to start Record Keeping all your transactions. Record keeping or Bookkeeping involves putting together your paperwork into a system or software that can automatically prepare your profit and loss account as well as your year end tax return. To do this, you will need a bookkeeping or accounting software. I strongly recommend you check out the No Hassle Accounting Bookkeeping Spreadsheet system which is a simple, free from fluff and non nonsense bookkeeping spreadsheet that can help you keep track of your finances. You can find our more about the No Hassle Accounting software by CLICKING HERE.
To Your Business Success