Running a small business can be stressful. Breaking off from a stable 9-to-5 position to pursue your self-starter small business dreams brings with it a lot of expense and uncertainty. From crippling overhead costs to worrying profit margins, small business ownership gives you enough to worry about even before accounting chores are considered.
Fortunately, Edison Wen CPA can help! As a premium provider of accounting and tax services in Calgary, Edison Wen CPA has years of experience helping small business owners breathe easy. Whether or not you choose to take advantage of our top-tier tax services, make sure to read the following accounting tips for small business owners in Calgary!
Weigh the comparative worth of amateur and professional accounting.
Many small business owners pride themselves on their fierce independence and ability to get things done themselves, but this can sometimes be counter-productive. There is already enough for you to worry about as a small business owner without delving into the world of accounting. The time and effort you can save by hiring on professional accounting services is typically well-worth the price of admission.
Separate your accounts receivable payments and borrowed funds.
It is crucial that you do not lose sight of what capital is yours, and what capital needs to be paid back. It is quite common for small business owners to seek out financial backing and loans to fund their initial marketing campaigns and cover start-up costs. Try to use software that make clear distinctions between your income and borrowed funds.
Outline your daily expenses to budget for the future.
Try to keep record of your everyday spending demands. These routine expenses are unavoidable, but they are traceable. Rather than relying on broader bi-weekly figures to show your expenses while calculating payroll, track these costs daily, or at least weekly. This will keep your budget in check, and help your business persist in a competitive market.
Calculate your minimum monthly profit.
Small business accounting can quickly get out of hand when you are trying to factor in every ballpoint pen and notepad that is purchased. Don’t get caught up in the minutiae; devise a system of expenses and obligations that shows you the exact minimum monthly income you need to profit. Calculating your income is relatively easy, so take advantage of that by creating a strict target figure to aim for.