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Managing your finances without a full time accountant

Doing their own accounting is something that many small business owners contemplate when they first step into business.The thought usually is gone before they get very far, thinking that is sounds too hard.But don't dismiss the thought too quickly, there really are simple ways to do your own accounting without going crazy.

It is all a matter of keeping accurate records and knowing your finances.You should start by picking an accounting method, pick one that you can stick with because it can be costly to try and switch.Take a good look at all of your options before settling on one.


Next pick an accounting system.The two basic systems are single and double entry.Single entry is easier for new business owners than the double entry, but maybe you are up for a challenge.

Next there is the choice in accounting periods.This is the choice between a calendar year and a fiscal year.There are some tax laws that come in to play here, so look into both carefully to see which one will be most effective for your business.

Once you are ready to start it is time to get all of your accounts set up.Don't forget about income, expense, asset and liability accounts.Break down each category into smaller accounts that are more manageable.

Don't forget about the bank accounts, and those dreaded check registers.They are the key to keeping you in focus.It is also recommended to have a locked cash box for the petty cash that your business will use.Keep a register of this money too.

Inventory is another aspect of accounting.You will need to know what you have on hand, what you have on order, what you have recently sold as well as fixed assets.All of these need to be constantly updated and watched.This will help with theft and losses.

There are also the business debts.These need to be followed closely and paid off in a timely manner.The payments need to be made on time, and if you can make the payment twice during the month you will save yourself a lot on interest.You don't have to make two full payments each month, just pay half each time.This will help you pay off your loan quicker.

And the one you wanted to forget about is payroll, but don't worry there are many ways to make payroll less worrisome.There are great payroll software programs available to do the hard work for you.Payroll software can be a great investment for your business.

Then everyone's favorite time of year, tax time shows up.Be sure you have the right forms for your business structure.This includes the forms for your personal taxes because of your personal income.

With taxes, there are also great software programs to help.Many tax preparation software programs have the ability to help you with deductions and write-offs.They can also double check calculations for mistakes in numbers.

With the computers in this day and age accounting can be so easy without an accountant.Another great resource for accounting information if you feel a little bit old fashion is your local library or book store.They will have great books with tips and charts to help you get your finances just right.Small business owners can handle their own finances and save money by not needing to pay an accountant!

So don't be scared of the word accounting, there are easy ways to learn accounting without getting a degree!

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