Bookkeeping and Your Small Business: Critical Links and Resources

Written by Jim McKinley – moneywithjim.org

Bookkeeping: If you’re a small business owner, the very term may cause you anxiety. Or maybe you’re just not interested in bookkeeping? Either way, you should know that bookkeeping is absolutely critical to both the short- and long-term success of any business. So if you haven’t given much thought to this important business topic, now is the time to start doing so. These bookkeeping resources from Majarrez & Associates will help you out.

Business Entities and Bookkeeping

You need to be savvy about accounting from the start. This includes picking the right entity for your business and tracking your financial paperwork accordingly.

  • In terms of bookkeeping and accounting, there are three major business entities.  
  • For many small businesses, forming an LLC is the best move for their finances.
  • You can use a formation service to set up an LLC in most states, including California.
  • Some new small business owners may benefit from having legal advice.

Everyday Bookkeeping for Small Business

Once you have your business set up, the accounting work isn’t over. In fact, it’s only just begun and you will need to take great care when tracking and recording your financial information.

  • Financial paperwork may seem daunting, but there are important documents you need to keep.
  • For example, your balance sheet is a document that needs to be consistently updated.
  • Your balance sheet will likely need to be updated on a quarterly and/or annual basis.
  • Top-rated accounting software can make keeping track of financial records easier.

Bookkeeping Tips for Small Business Taxes

Getting your taxes right is one of the most important reasons for keeping detailed financial records. This is also why bookkeeping is so critical for the success of your business.

  • Make no mistake about it — poor planning can end up costing your business big time.
  • At the very least, you could miss out on huge tax credits for your small business.
  • Or, you could end up facing an IRS audit that will cause you more stress and headache.
  • Bottom line: Get help with your taxes. Failing to do so could put your business at risk.
  • Better yet, think about hiring a CPA who can simplify and streamline your bookkeeping.

Bookkeeping may be boring, but it’s a necessary evil in the business world. Whether your business is large or small, you have to keep good books in order to help it thrive. Your financial records can also protect you in the long run. Whether you DIY, use software, or hire a pro, make bookkeeping a priority. Contact Majarrez & Associates for your accounting and bookkeeping needs today.

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