There are plenty of different things you have to have mastered when you run a small business, but most people (and understandably so) spend the overwhelming majority of their time focused on the “fun” parts of owning a business – the marketing in the advertising, the product creation, networking, etc. – compared to the not so fun parts like accounting.
However, unless you have a complete and total grasp of your accounting and what you have going on as far as money coming into, going out of, owed to, and owed from your business you won’t be in business very long!
Here are five accounting tips that every small business can take advantage of!
Don’t ever “wing it”
The very last thing you can afford to do as a small business owner is to just kind of “wing it” when it comes to understanding your books and your accounting. If there’s any area of your business that you want to hire top-tier professionals for, it has to be in the accounting department – especially if you are outsourcing this work to a firm or agency.
Get as early a jump on your taxes as you can
There’s nothing worse than feeling the tax crunch right before your taxes are due in April, so make sure that you have your accounting department taking care of your taxes on a rolling and regular basis all year round. Get as much of a head start on your taxes as you can and you won’t feel like you are under the gun when the tax man comes calling.
Have your numbers and your information as accessible as possible
The only things that get improved are the things that get measured on a regular basis, but you’ll never be able to measure your cash flow unless you have access to real-time information on demand – and that means investing in top-tier technology, cloud-based software, and experts that can provide you with regular reports at any one particular point in time.
When your numbers are accessible and your information is easy to get your hands on (for authorized individuals, anyway) you’ll have a much clearer picture of your business. And that can make all the difference!
Do your best to defer your income
You will only ever be taxed for the income that you have earned in a particular year, and there can be some pretty significant advantages for “earning” that income – actually receiving payment for your services or products – in a future year, if only to help you when it comes time to pay the tax man.
This is something you’re definitely going to want to talk to your accountant about ASAP!
Focus on your Profit and Loss workbooks
You absolutely need to take complete and total control over all of your tax liabilities. This information is going to be immediately available to you when you read your Profit and Loss workbooks, and you may find that a couple of strategic purchases towards the end of the year can help you to lower your “profit” on the books and reduce your overall tax burden.
About the Author
Morris Edwards is a content writer at CompanyRegistrationinSingapore.com.sg, he writes different topics like Discover Some Beneficial Accounting Options for Growing Startupsand all topics related to Business and Economy, if you are interested about Singapore Company Registration Services visit our website.
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