This document provides tips for getting small business accounting on track. It recommends opening a separate bank account for business transactions, recording all deposits and expenses in detail, avoiding cash transactions when possible, setting aside money for taxes, adopting a payroll system for employees, understanding import taxes, tracking billing and dues, hiring a professional accountant, and choosing accounting software to manage the process.

1. Tips To Get Your Small Business Accounting on
Track

2. Contents
1. Introduction
2. Open A Bank Account
3. Record Deposits
4. Detail All Expenses
5. Avoid Cash Transactions
6. Keep Aside Money For Taxes
7. Adopt A Payroll System
8. Know Your Import Taxes
9. Keep a Track Of Dues
10.Hire a Professional Accountant
11.Choose the Right Tool

3. Introduction
❖Most small businesses have a tough time with their
accounting processes.
❖It involves maintaining a detailed income and
expense account, calculating taxes, salaries and a
whole lot of other tasks.
❖You can double up as a bookkeeper or hire a part
timer to help you.
❖Here we take a look at 10 tips that would help you
get your small business accounting on track.

4. Open A Bank Account
❖ Once you have registered your business you need to
open a bank account. Whether it’s a LLC or a partnership
your first transaction should start with the bank.
❖ Even if you are the sole proprietor, never mix your
personal and business transactions together.
❖ Start with a business checking account and from here you
can transfer a share of the revenue as your remuneration
to your personal account. This helps organize funds
better and prepare for taxes.

5. Record Deposits
❖ Whether its sales revenue, loans or angel investment into
your business, each and every transaction needs to be
recorded.
❖ You can make use of and accounting and billing software like
Invoicera, excel sheet or even a piece of paper, but make
sure every cent that comes in is accounted for.

6. Detail All Expenses
❖Detail even the smallest of expenses incurred for your
business. These may include shopping for stationery items
of meeting up with a client in an outdoor café.
❖This allows you to have a better idea of your finance and
the input cost that goes in your business.

7. Avoid Cash Transactions
❖Try and avoid cash transactions as much as possible as it can
be difficult to keep trail of them after a year.
❖If you do, make sure you collect a bill or receipt for every
transaction.
❖For all major expenditure use a check or a credit card as it
can immediately record your expense.

8. Keep Aside Money For Taxes
❖Irrespective of which country you are running your business
on or selling different types of products and services you
would have to pay taxes.
❖So keeping aside money for the taxes and systematically
planning for it doesn’t put your business operations into
jeopardy. Pay taxes on time as avoiding them or delaying
them can lead to penalties.

9. Adopt A Payroll System
❖As your business expands and you start hiring employees
adopting a payroll system would be a good choice.
❖This will help you calculate their wages and taxes without
any errors. All the processes in these systems are automated
and save you quality work hours.

10. Know Your Import Taxes
❖In a globalized environment you are likely to import goods
from different parts of the world. The taxes vary on the types
of good and the country of their origin.
❖Importing goods from a particular country may often lead to
additional costs and knowing the import taxes like the back
of your palm allows you to make sound business decision.

11. Keep A Track of Dues
❖Small businesses and start-ups can suffer a lot from unpaid
and late invoices. This can severely affect your cash flow and
hence you need to regularly keep track of your billing.
❖You also need to detail out a process for unpaid invoices. Call
the clients, re-send them the invoices and levy penalty for
late payment.

12. Hire A Professional Accountant
❖Last but not the least, hiring a professional accountant has
many benefits. These people bring in their expertise to the
table and help you manage your finances methodically.
❖They have sound knowledge of the various account tools and
software and this allows them to speed up accounting,
unearth key statistics all of which goes into quality decision
making.

13. Choose the Right Tool
Choose the right online tool to manage your business invoicing and payments is absolutely essential. A tool that helps
you features to to invoice on time and get paid on time. Invoicera is feature rich tool to bring your accounting
process on track. It helps with scheduling of invoices, tracking of expenses and features like adding late fee to
your invoices.

14. Get In Touch
Web: www.invoicera.com
Social:
www.facebook.com/Invoicera
www.twitter.com/invoicera
https://www.linkedin.com/company/invoicera-invoicing-simplified
E-Mail: marketing@invoicera.com
Ph (IN): +91-9350204838 (6:00 am - 12:00 midnight IST)

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