Starting a business is not that easy if you are on a tight budget. You need to limit your expenses as much as you can by doing as many tasks as you can yourself – at least for the first couple of months.
One of the most important tasks of your newly founded business is accounting for small business. Bookkeeping is perhaps the most important task you need to master – before outsourcing it to a small business bookkeepers company.
That’s why we decided to write down these 3 Easy to follow bookkeeping basics Tips for new Business Owners that will help you jumpstart your business endeavors.
Don’t Pay Your Business Expenses Using Cash
Paying your business expenses using cash is actually a big no-no for small business owner. Even if you are buying stationary for your office, you need to pay via your visa or via a bank transfer or any other online digital method.
The reason is simple. It is easier for you to find these expenses through your bank account and add them as expenses to your business in order to get tax cuts.
Related: 5 Best VAT Tips for Business
Keep Your Personal Expenses Separately from Your Business
You need to keep your private finances entirely independent from those of your business. Create a separate checking account for your company to avoid a ton of confusion in the long haul.
Doing this will extend your business life because you will not spend money for your personal stuff from your business cash flow.
Always Check Your Books frequently
According to several prospering entrepreneurs, reviewing your books on a weekly basis can keep you updated on the state of your business. By doing this, you will be much more ready to manage your income better, you will be much more ready to understand your weekly expenses and, much more ready to know your current paid or unpaid invoices.
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