As a small business owner, it doesn’t matter what decade it is. Keeping your working capital where you need it to be takes hard work. Are you new to the adventure of being your own boss? RMG Accountants and Consultants is here to provide you with six tried and true bookkeeping, accounting, and tax tips to keep your business afloat and help it thrive over time, so keep reading to learn more!
Separate Business and Personal Finances
One of the most important things a new business owner can do is proactively separate business from personal finances. Upon opening your new business, you should be sure that it has its own bank account and credit card so that it can begin to build credit independently. Additionally, your future self will be thankful that you won’t need to sift through and separate personal and business expenses come tax time.
Track Performance Against Plans
One overlooked aspect of bookkeeping is considering not only the performance of the new business but the relationship to projected goals. Tracking your financial forecast or budget against performance can be a great way to predict where your business is headed next. This information can then be used to improve future performance and guide your goals moving forward.
Use a Professional Payroll Service
To avoid mistakes and penalties from the IRS, it is best to hire a payroll service to take care of the often-complicated procedure of processing payroll. The use of a professional service can help ensure that you meet compliance guidelines and avoid any significant issues with your payroll. At RMG, we work to support the financial health of businesses of all sizes through our accounting and auditing services.
Keep Track of Hours Works and Employee Status
It is a no-brainer that employees play a vital role in the performance of any type of business. Out of fairness not just to them but to your business itself, be sure to always accurately record hours worked. The use of time-tracking software can help you stay organized and ensure that all time is logged and recorded accurately. With software, details such as overtime, paid time off, and vacation time can be automatically accounted for. In addition, be sure that you are complying with federal and state tax laws by ensuring that your employees are properly classified (ex. full-time, part-time, contract).
Be Fastidious with Tax Preparation
Few things in life are certain, but taxes are one of those certainties. Plan for quarterly or yearly tax deadlines. Set aside money regularly so that taxes can be paid-in-full and on-time when these inevitable dates approach.
Ask a Professional for Small Business Bookkeeping Tips
With starting a new business, it can be difficult for even the most organized of sole proprietors to be aware of every financial obligation they are now facing as a new business owner. Asking for help can be one of the best decisions you make as a business owner. The professionals at RMG can help enlighten you to your new duties and get all your “ducks in a row” from bookkeeping to tax planning.
Let Your Small Business in NJ Thrive With RMG Accounting
At RMG, our executive accounting team takes all inquiries seriously, with a keen knowledge of several industries, including automotive, construction, manufacturing and distribution, insurance, law firms, and more. Keep your business finances secure with accounting tips, advice on the right business credit card, balancing your income and expenses, learning what’s fully deductible, and more. If you’re ready for peace of mind for you, your family, and your employees, contact us today by calling (973) 712-5000. We look forward to hearing from you!