Accounting Tips For Small Businesses
Starting a business is certainly an exciting and rewarding experience. But it can be daunting knowing where to begin. We’re here to take the guesswork out of the process while boosting your chances of success, thanks to this comprehensive guide on accounting tips for small businesses.
1. Come Up With a Business Concept
Your small business needs to be profitable, to be sure, but it also has to involve something you’re good at.
2. Research Competitors and Market
Most small business owners spend more time honing their products than on getting to know their competition. When applying for outside funding, your lender will want to know what sets your business idea apart.
3. Come Up With a Business Plan
This is a document that acts like a roadmap for establishing a new small business, making it easier for potential investors and financial institutions to understand.
4. Plan for Taxes
It’s important for any small business to plan for taxes, including income tax, self-employment tax, property tax and sales tax.
5. Choose a Business Structure
It’s important to properly structure your business, such as an LLC, LLP, sole proprietorship, or corporation.
6. Register Your Business
To establish your small business, you will need to choose a business name, register it, get an EIN, and obtain the right licenses and permits.
7. Straighten Out Your Finances
First, you’ll need to open a Business Bank Account, then you have to hire a bookkeeper or buy some accounting software, which will help you to manage and track inventory.
8. Fund Your Small Business
You can do this through personal savings, credit cards, funds from family and friends, small business loans or crowdfunding.
9. Get Business Insurance
The type you get will depend on your small business model and the risks your business faces. If you have employees, you will need workers’ compensation insurance.
10. Market Your Business
Make sure you have a marketing budget left over by launch time. You will have to create a website, optimize it for SEO, add relevant content, list yourself in online directories, and come up with a social media strategy.
11. Scale Your Small Business
You will have to grow your customer base and revenue through the expansion of your marketing efforts, improvement of your product or service, and collaboration with others. Choose ways to automate or outsource tasks such as bookkeeping and accounting services to make your life easier.
You can do that with Charis Commercial Capital. Get in touch with us today to learn how!