Table of contents
Spring has sprung, and with it, a great opportunity to dust off your business finances. Where to start? We tapped our App Marketplace partners Xero, Intuit QuickBooks Online, Kashoo Cloud Accounting, and Commerce Sync to get their top tips for cleaning up your books.
To make your business finances and accounting even more of a breeze, you can hook up your Square account to these tools in Square App Marketplace.
1. Step back and do a financial inventory
It’s a great time to see where your business stands, what’s coming in, what’s going out — generally taking a financial inventory. A sharp eye on your finances goes a long way toward growing your business. Take a moment to review the following:
- Expenses and bills: Pay them quickly to maintain goodwill
- Invoices: Track down all late payers
- Payroll: Keep all staff records up to date
- Taxes: File your returns and pay on time
—Xero
2. Set the year’s goals
Setting goals at the beginning of your fiscal year is worthwhile, but you may find yourself guessing here and there. But with a few months under your belt, you have some historical data to help inform 2016 goals. Look at your profit and loss, cash flow statements, and balance sheets from January, February, and March to get a sense of how your business is trending. With these insights, you can better project growth over the next nine months and define or change the actionable tactics to get you there. —Kashoo Cloud Accounting
3. Manage employee expenses
Make sure you have procedures in place so employees get timesheets and reimbursable expenses in on time. You can use apps to help keep track of these expenses and reduce data entry time. —Intuit QuickBooks Online
4. Get ahead with technology
A small investment in accounting software — complemented by valuable time-saving apps — gives small business owners tremendous power to keep track of their finances. By taking the time to learn the full power of these solutions, you get a much better handle on your business, which can quickly translate into increased profitability. —Commerce Sync
5. Treat each month like a mini year-end
Small business owners are busy and typically put off bank reconciliation until the end of the quarter or year. If you approach each month-end like a mini year-end, one daunting, gigantic task turns into 12 small, digestible tasks. It takes discipline but is well worth it. Doing mini-reconciliations every month saves you time and stress come year-end. —Kashoo Cloud Accounting
6. Make a date with yourself
Schedule time every week to make sure your accounting is up to date. This gives you great visibility into your finances and prevents year-end headaches. —Intuit QuickBooks Online
7. Separate business from personal
If you’ve been in business for a while, you know the importance of keeping your personal and business finances separate. But for the new small business owner, it’s easy (and even sometimes necessary) to commingle funds. If you fall into the latter camp, now is a great time to drive a wedge between your business and personal finances. Get a checkbook or credit card for your business bank account so you can cover business expenses in a more streamlined manner. And if you have to cover a business expense with personal funds, record it and pay yourself back. Over time, small nickel and dime expenses like that can really add up. —Kashoo Cloud Accounting
8. Organize your receipts
Set aside 15 minutes each week to organize your receipts and answer the questions “when, where, what, and why.” When it comes time for taxes, you’ll thank yourself for not having to recall all the specific details. Tracking expenses on a regular basis — and this goes for nearly all aspects of accounting — gives you a firm grasp of your cash flow and a much calmer state of mind. —Commerce Sync
9. Make an appointment with a tax professional
Make an appointment to meet with your tax professional after tax time to see what you can do better next year. Perhaps you’re not maximizing deductions or accounting for inventory in the best way possible. —Intuit QuickBooks Online
