Intro to Accounting for Business
- Milton Hernandez
- Feb 6, 2023
- 2 min read
Accounting can be a very fun and helpful way to keep tabs on your business cash flow. It is very important to attract investors and be able to produce your taxes. You need to keep track of all the money going in and out, but most importantly you need to be organized. Maintaining an accounting system requires consistency. Please see (GAAP) Generally Accepted Accounting Principles.
Here are a few tips to help you get started:
Separate business and personal accounts: Think of your business finances like a different person that has to handle their own money. Keep the money you earn and spend for your business separate and pay yourself as a business would pay an employee. Pay distributions accordingly as the business profits.
Keep track of income and expenses: You want to keep track of your cash flow, most business owners agree that cash is king, so all the money that comes in and all the money that goes out of your business needs to be closely watched.
Use software or hire an accountant: Just like we use a mowing tool to cut the grass or hire a landscaper, you can use accounting software or hire an accountant to help you keep track of your business finances.
Know your tax obligations: Your business has tax obligations are one of the most important parts of staying in business. You can have equipment, income, and personal belongings embargoed if you don't pay your taxes correctly. Make sure you understand what taxes you need to pay and when you need to pay them.
Remember, accounting may seem like a chore, but it's a critical part of managing your business and keeping track of your cash flow! A healthy business will look into having all three financial statements incorporated into the daily decisions of its managers. Please find the business plan and its financial statements in the link below.
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