Will 2017 be the year you decide to finally follow your passion and start your own business? There’s no question that the first year and can be quite scary and incite nerves, but it can also be a lot of fun creating something out of nothing. However, the key is to help yourself when you can, so you can overcome any challenges out of your control. Randall Dang is an accountant who has consulted for Canadian businesses at all levels. As a resident of Vancouver, Randall Dang has worked with many small business owners to help them better manage their books. Here are a few tips he offers to help small business owners keep their finances in order:
Track all Expenses: It doesn’t matter how large or how small the expense is. You’d be amazed by how often small business owners miss out on tax credits and deductions because they don’t track their expenses correctly. The easiest way to track expenses is to pay for things with a business credit card or debit card. When you use cash or other methods, you’ll be left with a whole lot of receipts.
Keep Personal and Business Expenses Separate: This is the easiest way to avoid accounting errors or audit issues come tax time. It will save you or your accountant a lot of labor time later on when it comes time to add up all of your expenses for potential deductions and credits.
Make Book Keeping a Regular Things: If you wait until doing the books at the end of the month, you’re more likely to run into trouble. You’re more likely to make mistakes when you’re rushed or pressed for time. It’s much easier to block a weekly time to update your books.
Hire a Professional: Sometimes it actually saves you money to just hire a professional. You’re less likely to see accounting errors, and you can devote your time to other aspects of your business.