SMALL BUSINESS BOOKKEEPING ADVICE

If you are just getting started with a small company, the chances are you are feeling overwhelmed by all of the many things that have to be taken care of which don’t relate directly to the product or service which you offer. Among all of the small business issues which might present the biggest challenge during the first year of operation, small business bookkeeping is probably the single most difficult situation to get under control, at least if it isn’t approached correctly. Here we are going to present our readers with some tips towards better small business bookkeeping.

Getting professional help from a business bookkeeping agency is always a smart move. Agencies such as, www.mmillercpa.com, have been helping small businesses get their bookkeeping in order for years. Using a professional service to help get bookkeeping methods set up that will work well with a specific business model is essential to success. People should keep in mind that creating a bookkeeping model is not just a short-term solution to a serious issue, it is a long-term way to eliminate the risk of error with areas such as payroll and easy to understand accounting methods. All small businesses that are operating without a solid bookkeeping method in play should seek out the assistance of a professional bookkeeping tea as soon as possible.

Another tip for better small business bookkeeping is to create a filing system which allows for records to be quickly and easily accessed when they are needed. Among the most crucial aspects of bookkeeping is preparation of records which may be used for tax purposes. Anyone out there who has never gone through an audit, either independently or  for a small company, has no idea just how crucial it will be to be able to be able to find any tax records which the state may request of them if the situation should arise. When files and records are not kept under an organized system, essential documents may be difficult or impossible to find when needed, and a company might end up suffering serious setbacks from tax penalties.

Finally, small businesses should always keep their records for at least three years. There are a few good reasons why it is recommendable for small companies to keep their paper and electronic records for at least three years, beginning with taxes. While the IRS could ask for records showing income for as many years as they see fit, in general if the IRS does an audit they will request the records of income for the last three years. Apart from backup for tax purposes, keeping at least three years of all company records will help a small business if they should need to obtain a loan. Banks are much more likely to provide a loan to a company if the company can establish their operations clearly for at least a few of the previous years. Even in instances when the company has not had a ton of income pouring in, the bank loan officer will be more inclined to lend a hand to businesses with better kept records for previous years of operation.