As a small business owner, I found a lot of small business advice which is important when setting up a small business or even considering turning your hobby or business into something more.
The first thing I did was research and found some really helpful advice for anyone looking to start up a small business.
Small Business Advice
With regards to finances, I do highly recommend to have a separate business banking account so your money and the business money are separated.
Any outgoings for the business, pay for this through your business account to keep a track of your expenses.
Also make sure you have spreadsheets or books to track all payments, whether they are incoming or outgoing. This will ensure your taxes are correct.
Another way to keep track of expenses is to consider investing in a fuel card. Fuel cards are a useful way for businesses to streamline expenses and keep track of spending without having to collect lots of paper receipts.
Hire an accountant
Hiring an accountant will help you with taxes and ensure that you are keeping track of your incomings and outgoings.
They are very useful, even for advice on what is considered as an expense.
You can check this useful page for further information.
Ensure all payments both incoming and outgoing are up to date.
If you have any owed payments, take a look into adding late payment fee’s if they are late with payments owed to you.
Also ensure your payments are up to date to avoid any late payment fee’s.
Look into what can be considered an expense and how you can calculate this with your taxes. For example if you purchase something expensive, check if you can deduct as a one off payment. Otherwise it may be an idea to split the cost over a period of years.
If you have regular expenses, keep a track of what you are spending weekly or monthly and give yourself a realistic budget.
Keep a calculated monthly profit and check if you are exceeding or falling behind.
If you are exceeding, take note of what changes you made to exceed your profits.
Like wise, if you are falling behind, see if you can find out why. Push your business a little more to exceed your profits.
There is many ways to keep track of your small business but the above are vital to ensure you are keeping in line with tax reasons.
*This is a collaboration post