Small Business Accounting

Never underestimate the requirement for accurate financial statements! 

An example of these are monthly income statements, balance sheets, and cash-flow statements which are all needed when filing your taxes.  These statements will also help you to assess the financial health of your company and to see where you can create improvements. 

A great investment to help you in this area is to purchase accounting software and of course, hiring the skills of a professional bookkeeper!  There’s no point having software to record your transactions if you’re not sure which side of the equation refers to debits or credits!!

How to record your business expenses

You can generally deduct business expenses if you incur them for the sole purpose of producing income. If you claim expenses, you have to be able to back up your claim. You do this by keeping all your business related vouchers and receipts, and recording all your expenses in a journal, a computerized file, or a software accounting program.
The simplest method of recording these expenses is a basic sheet with columns that list the common categories of expenses. At the end of each month, total each column, and then start a new sheet for the next month.