If you're like me and have started a small business in line with your passion, accounting probably isn't your forte (or passion, for that matter!) So how can you make sure that this key financial part of your business is not only efficient but done correctly?
Minimizing the effort it takes to manage your finances - as a small business owner or as an individual - is key. Why? So that you spend time on your passion and not the logistics.
Infographic: University of Alabama Birmingham
Read on to learn about 3 ways to manage your finances in your small business
manage it yourself
If you only have a few transactions, you can use free tools like Google Sheets (or make your own form for easy entry). A good starting point as you build your business, keep in mind that you'll need to expand your capacity in the future as you handle more transactions and diversify.
All you need is a Google account, and you can access Google Drive documents (like your spreadsheets) across all of your devices, and offline, too. Make your own format or start with a budget, expense report, or invoice template.
outsource your accounting
Outsourcing is a great option to help you manage your financial situation if you need help with your taxes or are dealing with hundreds of different transactions.
If you feel like your time and skills are better spent elsewhere and your finances are taking too much of your time, then research prices of accountants or accountant outsourcing firms. You'll likely only need a few hours of their time each week.
If you're set on doing your own taxes, you'll want to learn about how the COVID-19 pandemic has affected tax filings for 2020.
The Simple Dollar provides a comprehensive guide on filing your 2020 taxes - including everything you need to know about the filing extension to July 15, 2020. Experts recommend that individuals take advantage of this additional time to better understand the tax benefits and exemptions available for their unique situation. The Simple Dollar Guide to Filing 2020 Taxes will help you navigate the deadline extension and understand the tax payment deferrals.
The experts at Creditcards.com created a guide for those who are self-employed during this unprecedented time. You'll learn about the options available and specifically tax breaks and extensions, unemployment benefits, CARES Act resources, and financial planning strategies in their in-depth guide on Financial Management for the Self-Employed during COVID-19.
using cloud-based software
Just like all-in-one CRM platforms, cloud-based accounting software has come a long way, allowing you to use one program to not only record and analyze your finances, but to send and receive invoices. Check out the infographic at the top of the blog post for an in-depth comparison of the various cloud-based accounting tools that can meld seamlessly into your business workflow.
Comment below with your small business accounting preferences.
Want more resources? Check out Crediful to learn more about everything money and visit Interest.com to know all your options for bailing out your business during COVID-19, including borrowing against your retirement account.
Check out this great summary article from Hourly to learn why accounting is so important for small businesses.
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