Get Your Startup on Track with Bookkeeping Wilmington NC
Congratulations, you’ve opened a business! Starting a small business of your own requires time, passion, and perseverance. However, business ownership is a rollercoaster with ups, downs, and a never ending to do list. Getting on top of bookkeeping tasks as soon as possible is crucial to a business running smoothly. Here are some bookeeping tips to give you confidence in your business ownership knowing all your bases are covered.
- Open a bank account solely for your business.
When you open a business, one of the very first steps should be to open a business bank account. Even if you are partially funding your business out of your own pocket, you should still open a bank account and keep records of the amount of cash you are using to fund the business. If there is not record of these expenses, you cannot deduct it from your taxes. Keeping your personal finances and business finances separate will help your bookkeeping be more precise and pain-free.
- Keep records of everything. Yes, everything.
This point cannot be overstated! Many individuals rely on the idea that you do not need to keep receipts for expenses less than $75. But why fight with the IRS? Keeping every receipt can save you time and money in the long run. It is always better to have too many receipts that can come in handy when backing up your claims, instead of not having enough and missing out on valuable deductions or making mistakes in your bookkeeping.
- Decide on a bookkeeping system.
One of the absolute biggest mistakes entrepreneurs make is ignoring their financial management from the beginning. Most individuals get overwhelmed or think their business is too small to even need bookkeeping. The sooner you are able to establish and maintain your books, the less likely you’ll receive penalties or other unnecessary expenses. If you don’t have the time, or knowledge, you can always choose to outsource to a bookkeeping service. Outsourcing to a bookkeeping service is often times the best choice. By outsourcing your bookkeeping you will be able to better manage your expenses, save money and time, and have access to an expert who will have the most recent tax knowledge and can maximize your deductions.
- Decide on a payroll system.
Setting up a payroll system supports the efficiency of your business, whether you have one employee or thirty. It gives you the ability to stay on top of legal responsibilities and can help save money by protecting you from any Internal Revenue Service penalties. However your organization chooses to manage payroll is ultimately up to your businesses accounting standards and procedures. Administering payroll requires accuracy, attention to detail, and time. Typically you have the option to manage payroll in-house, or outsource it to a professional. Regardless of what option you decide on, you are still responsible for reporting and paying all taxes. If you do choose to process payroll in-house, choose the software that will work best for your company. While some businesses choose to handle payroll internally, more small business owners are deciding to take advantage of professional payroll providers. They’ve found that outsourcing payroll enables them to focus on the issues that will directly affect the growth of their business. Payroll services offer a valuable alternative to in-house processing. By choosing the correct payroll provider, you can find a less expensive and simpler way of paying your employees.
- Learn your tax obligations.
Tax errors are a costly way to learn an important lesson – what you don’t know can hurt you and your business. Total penalties in the U.S. for payroll mistakes alone add up to billions of dollars each year. And while “I didn’t know …” may be an honest answer, it won’t protect you from a costly penalty. Chances are you will be required to pay federal business taxes, as well as state and local taxes. Your tax obligations depend on the structure of your business, where it is located, and how many employees you have. The most common tax requirements include income taxes and employment taxes. Setting up a schedule and plan to pay these taxes will be well worth it in the end.
- Re-evaluate your methods.
When you first start your business, you may have a set plan on what you want to do. But as you grow and develop a larger business, it will be important to review these plans and see what can be changed. Change may be fearful, but can be beneficial when there is proper bookkeeping data to back up your reasoning.
- Don’t be afraid to ask for help.
When you start your own small business, don’t have an “I know it all” attitude. Many successful small business owners are willing to admit an area is out of their expertise, and will solve this by outsourcing to a professional. A small business owner’s most valuable asset is their own time. Some owners will take the cost cutting approach to do it all on their own, but this can cause them to be spread thin across too many business tasks instead of focusing on the area they are best at. Trying to handle tasks that are out of their expertise often lead to mistakes, and can end up costing more money than they would have spent by going to a professional in the first place. Bookkeeping is a great example of this. Most small business owners start off doing the books themselves, then use an outsourced bookkeeping service down the road. The mistakes you can make while trying to handle your finances all on your own, can cost much more money to clean up than just getting your bookkeeping done correctly from the start.
Starting a small business can easily become overwhelming. One of the most important things to remember is to be open to advice, don’t give up, and always stay passionate about what you do.
Bookkeeping Wilmington, NC
BOSS is a growing bookkeeping Wilmington NC firm of local business advisers who are committed to providing responsive service, strategic thinking, and competitive pricing to our clients. If you’d like help or to learn more about running a small business in Wilmington, NC give us a call at (910) 338-1198, stop by our new office located at 3901 Oleander Drive, Suite G in Wilmington, or click here to fill out our online contact form. We look forward to hearing from you!