If you’re like most small business owners, it’s likely that you didn’t start a business because you enjoy crunching numbers. In fact, it’s possible that you can’t stand this part of owning a business. For better or worse, though, accounting operations are a crucial aspect of running a successful business. To help make it a little easier on yourself, it’s important to simplify these operations as much as you can.
Use Digital Invoices
When you have to charge someone for a product or service, it’s important to start with an invoice. Rather than simply receiving money from the customer, an invoice documents the process so that there aren’t any discrepancies down the road. Plus, when you use digital invoices, you can easily organize them and import them into your accounting software to make reconciling your bank statements far easier.
Integrate Your Business’s Moving Parts
One of the major challenges of effective accounting is that it involves synthesizing data from multiple sources. If you have a tool to integrate those different sources, though, your accounting duties will be greatly simplified. That’s why software like Oracle NetSuite Cloud ERP is so helpful because it offers solutions to track your income and expenses and then gives you the tools to bring those datasets together to create a meaningful financial record.
Utilize A Payroll Service
Although it can be tempting to try and take on payroll by yourself, the number of regulations surrounding this aspect of the business makes this approach challenging, to say the least. Rather than risk a major error that could land you in hot water with the Federal Government, you can utilize a payroll service to take care of everything for you, including year-end tax statements, withholding, and paystubs.
Consult Directly With Local and State Governments
Tax law can be tricky for large businesses with dedicated tax lawyers to navigate, much less small businesses with only a few employees. Therefore, in order to avoid breaking tax laws, it’s important to consult directly with representatives from your local governing authorities to get a definitive answer on the types of tax liabilities that your business will face. While generalities are helpful as you get off the ground, receiving answers directly related to your business will ensure you’re always right with the law.
The best favor you can do for yourself when it comes to business accounting is to stay up-to-date. In addition to staying on top of the latest finance-related laws, it’s also a good idea to stay in-the-know about new tools to help you simplify your accounting procedures. This will ensure you’re always making the best use of your time and doing the most to support your business’s bottom line.