Small business accounting, like any office skill, takes some time and training to get used to. It might be an even steeper learning curve if you are accustomed to a larger team or haven’t had the opportunity to set up a DIY framework. The good news is that the digital age has made this endeavour a manageable task, and one that can be set up accurately and effectively from the comfort of your desk in the office or at home. Now let’s get into this DIY guide to small business accounting.
Few modern tools require manual or double handling anymore, which is a great thing if you don’t have too many hands on deck in the small business that can be allocated to the finances. Most reputable accounting software will allow you to pay employees, pay supplier invoices, track hours, and keep you on top of your reporting. These platforms are designed to be used by financial professionals right through to line managers, so you can expect a clean presentation that is easily understood by all business stakeholders. We recommend solutions like QuickBooks Online for more advanced businesses or MYOB for those looking for a greater amount of automation with their small business accounting software.
When it comes to accounting, compliance is not an option but a legal obligation. Small business accounting software makes these government-mandated reports easy to get through, and many of the steps are actually automated and calculating in the background as you work through other tasks. Depending on the tax commitments in your country, you may also need to have a modern computer to actually run this software to get an accurate result, so be sure to upgrade your technology if required in favour or a more compliant result. Modern technology will always save you time, and the speed and new capability might even shave some hours off your day.
Your DIY solution to small business accounting might actually be to outsource the work to a professional, or even work together with this professional on your accounting responsibility. Whether this is a stop-gap solution when you enter your busy periods, or if you want someone on the team checking your work and looking out for any issues in the future – it is always a worthy investment to work with freelancers. Reach out to some of your local outsourced options and understand what sort of offering it is available.
Security is always a key priority when it comes to managing your accounting, whether you are manual or online you want to minimise any chance of a security breach. You can do so by password protecting your computer, spreadsheets, accounting software and even telephone accounting prompt. Don’t let your small business be an easy target for wrong-doers and get on top of your accounting security so that your revenue, employees and business future remain in safe hands.
Other business stakeholders
You might be taking on the small business accounting DIY, but you need significant support from the other members of your business to ensure success in this area. Are they submitting their financial documents to you in time, are they late to confirm the hours worked by their team, and do you feel happy with the level of transparency shown? Expect better buy-in from your team, tell them that when you succeed in the role the whole business succeeds, and insist they sharpen up the operation.
There has never been a better time to set up a small business accounting framework as there are so many digital tools that make this task possible. Don’t rush any of the stages and be sure to signal if you need support from other employees in the business.