As a small business owner or entrepreneur, you know that there are many responsibilities you must undertake to run a legally, financially, and operationally sound business. You may be an expert in one or more of these areas, but you also may need some guidance to understand what’s required of you. Austin SCORE’s volunteer mentors are a team of experienced entrepreneurs, corporate managers, and executives with diverse backgrounds in several industries and specialties. We work hard to build mentoring relationships with new businesses and can assist you with accounting for small business.

The Basics of Accounting for Small Business

Accounting basics for small business cover many areas. From creating a budget to managing your payroll, you need to accurately keep track of your financial records. After you have registered your small business with your state’s comptroller, you’ll need to get busy with setting up the financial side of things. Here are a few good places to start:

  • Develop a relationship with your bank – Financial institutions offer commercial banking services with customizable plans. Find one that fits your needs.
  • Track your spending – Expenses like flights, car rentals, meals during business meetings, supplies, etc., all need to be recorded, posted, and reconciled.
  • Know your tax requirements – It is important to understand the tax requirements at the federal level and for the state you conduct business in. Seek an expert’s advice in this area, if needed.
  • Create an accounting system – Invest in software that enables you to keep track of all things financial. And don’t forget about payroll. You’ll want to keep your employees happy and paid on-time.
  • Figure out your revenues – Knowing your income and calculating your costs will help you forecast sales and enable you to create a budget. You’ll also be better able to predict your future business activity and account for it.

Is It Time to Hire an Accountant for My Small Business?

When do you know it’s time to hire a professional accountant for your small business? CPAs, or certified public accountants, are required to pass a certification exam and gain experience in Accounting that qualifies them for public accounting work. If you are a one-person shop, you may keep a spreadsheet of your business expenses and other bookkeeping records, but we hope there will come a time when your business grows, and your accounting needs will grow as well. You should consider hiring a CPA for your small business for as simple a reason as when the time required is beyond your means. In addition, the need to hire a CPA could come when your business expands its market reach and you need someone with knowledge of overseas accounting requirements. If your time commitment or knowledge deficits are hindering your effort to keep accurate books, it’s time to hire a certified public accountant. And keep in mind - a CPA can be in-house or remote.

Thanks for reading our article about accounting for small business! Austin SCORE is a team of volunteer mentors who help guide small businesses and entrepreneurs to achieve success. We offer one-on-one mentoring, workshops and events, and templates and tools to help you accomplish your business goals. Read about other business insights in the Austin SCORE blog!

Simplifying QuickBooks

Location: theworkplace in Dripping Springs
100 Commons Road, Suite 11
Dripping Springs, TX, 78620

Date & Time: Wednesday, March 20, 2019, 10:00 am - 12:00 pm CDT

Are you joining the many small businesses that use QuickBooks for accounting? With a focus on the online version, we offer a basic introduction to using QuickBooks. For experienced users, we recommend using SCORE's free one-on-one mentoring.

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Accounting for small business