How To Track Finances For Small Businesses (Tools and Tricks!)

Need to know how to track your finances for small businesses (like yours)? Read on! 

Are you a part of the popular tax scramble? This is where you scramble at the end of the year to find, gather, manually add up and compile your bookkeeping information at the end of the year in order to file your taxes. Sure it’s nice NOT to worry about your accounting for 364 days out of the year- but boy is that 365th day one STRESSFUL day!

I am going to share with you simple tools to help you track your finances for small businesses that will make a huge difference (especially at tax time)!

Most of your bookkeeping can be done 100% Virtually with the right programs and Assistance (QuickBooks Online is great for that!) . I firmly believe that tracking your bookkeeping is the #1 tool to growing your business. If you have little information or incorrect financial data you are making incorrect business decisions. Having clear, precise monthly financials is imperative to reaching your business goals.

Launching and improving your existing Accounting Procedures by including these 6 steps.

A lot of my clients know that it’s important to have a system in place but honestly they have no idea where to start! So I have compiled 6 very simple steps to get you a starting place and 5 solid steps toward your peace of financial mind.

1. Use a good accounting system.

One of the most popular systems is QuickBooks due to its initiative nature. If you’re just starting out and want to track your income and expenses you can also utilize a simple Excel Worksheet. 

2. You have to keep ‘em Separated (your business and personal income, that is!) 

Keep your Personal and Business charges separate. This means internally and externally. If you’re into paper, then keep a folder marked PERSONAL and TO BOOKKEEPER. Each week sort out your files into those two categories. By the end of the month you can send over all the documents to your bookkeeper.

3. Save EVERY Receipt

Yes, that’s right. If you are ever faced with an audit, the IRS has a very short sense of humor about your wild stories on how your receipts got lost.

4. Keep your paperwork (digital or actual paper) organized

Keep files labeled near your desk or on your desktop for each month and have a running checklist posted to ensure you send everything to your bookkeeper or for internal tracking. 

5. KNOW what you CAN and CANNOT write off.

Let’s say that you paid the neighbor girl to babysit while you went to a networking meeting and gave her $40. Can you write that off as a business expense? No, you can’t write that off. But, suppose you have a home office and run your business from there. In this case, you can deduct a portion of your security system bill, your water bill, your gas bill and your internet fees as business expenses. Be aware of what counts as a business expense and what doesn’t. Ask your accountant or CPA for the most up-to-date information! 

6. Have an accounting system set up for your small business (even if it’s simple!)

Be sure to include internal controls to safeguard resources against loss due to waste, abuse, mismanagement, errors and fraud. It happens more often than you think!

So now you know a bit more about how to track finances for small businesses! What questions do you have about this? Lave me a comment and let me know! 

Love, light, and MONEY, honey…

Kaylee

P.S. Interested in learning more about how Coaching With Kaylee can support you with QuickBooks Online? Click here!