When you first start a business, it would be fair to say that the formalities are hardly something that you pay a lot of attention to. After all, you are desperately trying to squeeze into the market and make a name for yourself.
Unfortunately, there are some things that cannot wait. Accounting is one of these and while you could, theoretically at least, leave it until the end of the financial year before calculating everything, this is going to be a lot more troublesome for you.
This is something that Barry Bulakites knows all too well. He has been involved in the accounting industry in the United States for some time, and knows exactly what new businesses should do to make their financial year a little easier. We will now mull over some of Barry’s top tips to help you get the most from your new business when it comes to accountancy practices.
Separate business and pleasure
All of us are taxpayers of the United States, but that doesn’t mean to say that you should be combining your business and personal taxes.
If you were to read any advice from Accounting Today, this would be one of the first things they honed in on. You can have the best programs in the world when it comes to organizing your tax, but it will all be for nothing if everything is funnelled through the same account. In short, organization will become impossible – and this is where mistakes are made and ultimately, time and money are spent trying to rectify them.
Keep the tax deadlines in your diary (and take action)
Whether you are adopting a DIY approach or hiring an accountant to take care of things for you, make sure that you keep tax deadlines in your diary.
The big mistake that a lot of small business owners make is keeping it in their diary, but not doing anything about it. It means, by the time the start of the month in question arrives, there is a frantic stretch to try and sort the accounts out. As a side note, if you do fall into this position, a DIY approach might be the only option you have. The deadline months are the times of the year in which accountants are at their busiest and many plainly refuse to take on new clients.
As such, get your house in order, and make sure that everything is filed in good time.
Keep a record of everything
Again, in the hustle and bustle of a new business, it can sometimes be difficult to keep a track of each and every item. However, in an effort to make your tax life a lot easier, this is something that you simply must carry out.
It doesn’t matter how small an expense is, make sure you claim a receipt. By doing this, you’ll slowly gain an idea of where your money is going, and this can also help you from a general business perspective, not just from an accounting one.