Key Accounting Tips for Small Businesses

Running a small business comes with its own set of challenges, especially when it comes to managing finances. Here are a few tips to help you stay on top of your accounting and bookkeeping:

Review Financial Statements Regularly

It’s essential to review your financial statements at least quarterly, but this largely depends on your company’s leadership. Familiarizing yourself with monthly or quarterly financials not only keeps you informed but also allows you to answer questions like, “How much did we spend on advertising last quarter?” with confidence.

Understand Transactions

When recording transactions, remember that every transaction has two parts. For example, if a company owner uses a debit card to purchase office supplies, the expense account (Office Supplies) is debited (increased), and the bank account is credited (decreased).

Clarify Accounting Terms

Accounting terms can be confusing. For instance, in bookkeeping, a “credit” to your bank account decreases its balance, while a “debit” increases it. This is the opposite of how personal bank accounts work, so keeping this distinction in mind is crucial.

By staying attentive to your records and maintaining up-to-date financials, you’ll have confidence and clarity to make informed business decisions.

Contact Zenture Accounting today to simplify your bookkeeping!