Becoming your own boss and launching a small business is an exciting undertaking that can lead to financial freedom. However, its success depends on managing your expenses and committing to a bookkeeping routine. If you’re embarking on a new business, here are a few accountant-approved tips to use. 

How to Manage Small Business Bookkeeping

1. Dedicate Time

Proper accounting requires time and focus. To avoid falling behind, carve out a block in your schedule every week specifically for bookkeeping, so managing receipts, bills, invoices, and labor costs won’t pile up. 

2. Record All Deposits & Track Invoices

When running a business, you’ll need to spend money to make money, which can come in the form of ordering essential materials or paying staff. As part of your bookkeeping routine, record every deposit in a ledger and track incoming and outgoing invoices. Don’t hesitate to follow up if vendors are late on fulfilling invoices. 

3. Separate Personal & Business Expenses

Before launching your enterprise, work with an accountant to set up individual business bank accounts and credit cards. Separating personal and business expenses will make filing taxes and determining what’s tax-deductible easier.

4. Find a Trustworthy Accountant

As a small business owner, you’ll have plenty to juggle, so certain tasks could fall through the cracks. You don’t want to let your business bookkeeping be among them. Enlist the help of an experienced accountant to handle the technical aspects of your finances, and you’ll have more time to focus on growing your business. 

When you could use bookkeeping assistance, turn to Daren Katayama, CPA in Kailua-Kona, HI. This local accountant proudly serves residents and business owners on the Big Island with everything from small business bookkeeping to tax return preparation. For more information on how this accounting firm will help you navigate your finances, visit their website. To schedule an appointment, call today at (808) 329-6635.