When you own a small business, sometimes there is much focus on the day-to-day operations

and running the company that financial documentation falls to the wayside. Keeping accurate

financial records is imperative to give you a snapshot of how your business is performing and

keep you covered if there is ever an audit. If your company’s finances need assistance with

documentation, here are some great ways to start.

Review current finances—Sit down and take account of all current finances. Nothing

should be excluded in this step. Loans, credit limits, accounts, contracts, credit cards,

utilities—everything should be included to provide an accurate picture of your business’

expenses and assets.

Keep accurate records—While you are busy taking account of all your business’

finances, use this step to get—and keep—your business organized. Ensure the recording

and maintenance of everything from receipts to invoices to credit card statements to bank

account statements and everything in between. This financial information is vital to

running an honest business and essential if there is ever a tax audit.

Utilize a separate business account—When personal finances intermingle with

company money it is difficult to distinguish one from another. It becomes more

complicated the more money made and the more expenses there are. If you do not have a

business account, set one up to separate finances. If you do have a business account,

utilize it, and only for business transactions.

Record every transaction—Logging all your transactions will keep your company’s

finances organized and, more importantly, benefit the handling of taxes. Knowing

precisely the amount of money made and the number of business expenses at any given

moment will enable you to have the correct amount of funds set aside to cover taxes so

there will not be a missed payment or a late fee.

Steer away from cash—When using cash, it is challenging for business owners to

maintain precise financial records. Spending cash here or there or paying bills with paper

money can lead to transactions not being recorded and can affect a company’s bottom

line. Avoid using cash so that there will be no questions of where money was spent or

how it was allocated.

Invest in tax accounting software—Attempting to document business transactions in

Excel or by hand is time-consuming and lends itself to accidental mistakes. Figure out

what you need from a business accounting software solution and then invest in one that

will meet your business’s exact financial needs.

Hire a professional—If you find you still do not have the time to properly care for your

company’s finances, or maybe you find finances frustrating, hire a professional to

manage business finances. We work with small businesses like your company to ensure

financial accuracy. Whether you need bookkeeping, accounting, or financial services, we

can help. If you are also interested in garnering more profit for your business, we can

explain our system. Whatever your financial needs are, we will help you get

where you need to be.

Katie Robinette

Co-Founder

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