Amongst many CPA services in San Antonio, small business accounting is an important one. There are many tips that come in handy for small business owners when it’s related to accounting. In this blog, some of the most basic and imperative tips have been listed. Following these will guide all small businesses into the right accounting direction. As providers of many CPA services in San Antonio, Uhlenbrock CPA has curated this list with personal experiences.
Have a look at the following:
1.Deciding whether to hire a bookkeeper or use an accounting software
It is very common for ambitious and excited entrepreneurs to feel ready to act as the head of accounting, marketing as well as sales, just to think of cutting costs. However, what they don’t understand is that it may majorly help to hire a bookkeeper. It would make sure that you aren’t racking up all the errors. It helps when you know that there is someone with experience as well as deeper understanding who’s working on your books. For starters, you could hire a freelancer or even someone part-time. This way, you’re not paying a full time wage. As an alternative, you can use a great accounting program that will let you crunch the numbers on your own.
2. Keeping the accounts receivable payments and borrowed funds, separate
When it comes to small business owners, they need financial backing. Sometimes, they may also require loans for marketing campaigns, or the startup capital, or even other initial things. For making sure that the loans do not appear in the receivables, using software which separates the income from borrowed funds, is a great idea. One should never lose sight of what’s theirs and what’s to be paid back.
3. Clients shouldn’t get away without paying balances
When you see a huge amount in your receivables column, it’s always a good thing. However, the money doesn’t get counted until it makes its way into your bank account. Do not let clients avoid the regular payments that they should be making. Standing firm and insisting that you receive the payment for all the past orders, before giving more materials or services is a good way to go about it. The department of receivables is very crucial for keeping the company afloat. Therefore, it may make sense to think of improving your invoices or updating the billing as well as invoicing software.
These three tips are not the only ones to be followed. However, they are the very important ones. A little more research on the subject will allow you to know more.
For more tips on small business accounting, get in touch with Uhlenbrock CPA at 210-701-1040.