Ignorance isn't bliss
One of the tasks that business owners seem to procrastinate the most in doing is accounting, especially, if there is no accountant or bookkeeper.
Then there is the dreaded tax season and the devil must be paid his due.
- Where the quarterlies paid?
- Was enough taken out for SSN?
- How about state, local, and fed taxes?
Become intimate with your Profit & Loss statement and your Balance Sheet. Start your day knowing your business balance and the status of each job which can be found in your “Profit & Loss”. At least weekly know your business Net worth.
If someone was to purchase your business what would you sell it for? Why?
Today’s accounting software is easy to use and can be heavily automated. The trick is to review your accounts daily or at least weekly.
Go cashless as possible
The less cash you use the easier accounting can be. By receiving payments primarily through cashless means (credit cards, checks, PayPal, ApplePay, etc) and paying for as many of your purchases through your credit card most of your accounting can be automated. You will still have to assign job numbers to your purchases, but most of the work will be automatically inputed into your accounting software.
Pay yourself as an employee
I've known many companies that pay their employees, but don't pay themselves. Bills are paid out of the till, often in differing amounts and at varying time periods. When the car payment is due it is paid. Mortgage is due, paid. These payments are often lumped together as owner reimbursement. Don't do that.
Pay yourself like you would an employee. Determine an amount like you would an employee and make it a regular cost.
There are many accounting solutions do employee payments. These programs will do all the accounting and tax calculations.