5 Things Every Small Business Owner Should Do Regarding Taxes and Accounting Part 1
Taxes can be complex and confusing for a business owner. But don’t be intimidated by your taxes, accounting or bookkeeping. All of these aspects are vital to your business’ success. So here are five things that every business owner should be doing regarding their taxes and accounting.
Tax Tip #1: Use a business bank account
This involves opening a business checking account and open a business credit card. You can also open a couple of check accounts if you want to track certain results in the different accounts. But maybe most importantly, you will not want to use a personal account to run your business. All of your business finances need to be tracked and recorded in your business’s bank account. That one thing will make filing your taxes so much easier.
Tax Tip #2: Take advantage of all the software available to you
There are many different software available to help you with your accounting, tax purposes, mileage, accounts payable and booking. There are both free and paid options. Free options will give you a base service, but if you pay for software, then you can get some advanced services. There are two pieces of software called Xero and QuickBooks Online that can save you hours of time if you are doing your bookkeeping yourself. If you don’t understand how to use QuickBooks, you can hire a QuickBooks expert for an hour of their time, and they can teach you everything you need to know about how to use this amazing software. QuickBooks can also talk to your business banking account and pulls all the transactions into the software so that all of your business interactions are accounted for. If you have kept up with your QuickBooks, you can give you information to an accountant, and they can give you a tax projection of what this year will look like for you, easily do your taxes for you and help you with any of your accounting needs.
Look for our next blog to finish up the five things every business owner should be doing regarding their taxes and accounting.