Accounting Tips to Non Accountants
The word “accounting” turns our hair white and makes us want to cringe. A lot of numbers, percentages and rules to follow don’t sound like a fun activity for you and the whole family. Needless to say, many entrepreneurs who are just starting out are really struggling with this aspect of their business. Getting on the right track with your accounting affairs means future project success and no hidden financial surprises, which you were unaware of. Here are a few tips Accounting Tips for Non Accountants to help you in your auditing tasks and avoid issues with the IRS.
1. Get into the habit. Accounting is not a one off thing that you have to do every April on your kitchen table, with loads of receipts, soaking up several cups of coffee while you bang away nervously on an unfriendly calculator. You should do your accounting every morning or else every week. Make it a point to set up reminders to yourself that that time allotted is for bookkeeping revision. To keep your records constantly up to date you must at least do them
2. Financial Slang. Understanding accountancy means speaking like an accountant. I know financial slang isn’t really hip, but it will save you a lot of frustration trying to make out the difference between debits vs credits, accruals vs expenses and what the general ledger is all about. Take a look at the US Small Business Administration’s Small Business Development Centers as well as the accountancy groups American Institute of CPA’s and the Association of Chartered Certified Accountants to help you understand the basics. There are several in the Las Vegas and Henderson Nevada area.
3. Use Software that you are comfortable with. Software was not made for everyone in mind. Therefore, do not feel pressure to use a specific type of software just because that is what your friend “John” uses. If you can always be found at your desk, then QuickBooks Desktop would be your best option. However, if you are always on the run, opt for something more mobile like Xero. Nowadays, with the introduction to tablets and cloud computing, cloud base accounting software such as Easy Books and Kashoo have apps, which let you operate your business from the comfort of your iPad no matter where you are.
4. Accept any welcoming advice. Some might say that the time used to figure out accounting could have been used to run the business. This is nothing but true, since taxes must be filed not only quarterly, but also annually. Looking for help and advice in focus groups is not a bad idea. Check out your local community for any talks and classes that are being held. Also, ask around, especially your previous bosses and other entrepreneurs to see which accounting firms they use. You could find a great accountant or bookkeeper who specializes in small businesses and won’t break the bank when it comes to their fees.
You never know, you might want one on hand to ease you down from the ledge just in case the IRS sends you a startling email. Accounting is your friend not your foe. If you know how to start and keep up with it consistently,the cash flow and success will be as regular as the IRS sending you your tax form returns.
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