What You Need to Know About Small Business Accounting

September 17, 2022
Published by Gonzales Group CPA

Even if you’re a one-person business or have a small staff, when it comes to starting a small business and handling the business accounting, it’s best to rely on a certified accountant in San Antonio TX, like the ones at Gonzales Group CPA. We take the stress and confusion out of accounting and let you focus on the business you really care about. Still, there are things you need to understand about small business accounting to help you understand your role in it all.

First off, you should always have separate business and personal banking accounts. If you’re starting small, you may be tempted to keep everything in one account, but it’s easy to lose track of what is business and what is personal. Plus, should you be audited, you will have a lot more paperwork to sort through. Having a business account will make life much easier.

It’s important to be diligent about tracking income and expenses. Not only does this determine your own income, which you receive in different ways, depending on the type of business you have, but it’s important for other reasons. When it comes to business and personal tax preparation, you’ll need to clearly demonstrate income and expenses, which include rent, payroll for other employees, and cost of goods for example. You also need to be tracking assets, liabilities, and equity. These are equally important as they provide a clearer understanding of your business’s financial health.

Speaking of taxes, it’s vital to save enough money for the taxes you’ll eventually need to pay. This is one area where it’s particularly helpful to work with a CPA so that you better understand how much you will owe, as you don’t want to have problems with the IRS. A CPA can ensure there aren’t unexpected taxes; you’ll have a clearer knowledge of how much you need to be putting aside so that you’re not suddenly short of money come tax time.

Typically, small businesses need to pay estimated taxes quarterly, which adds to the paperwork and time spent putting it together. This is another reason why having a professional handle your taxes and accounting is worth the extra cost. It frees you up to focus on your business and ensures your filings and accounts will be accurate and potentially more beneficial to you.

An experienced accountant in San Antonio TX is able to take some of the pressure off you when it comes to dealing with finances and taxes. This is an area that many small businesses have difficulty with, which is why having a professional help you makes good financial sense. Contact us today to see how we can lighten your load and help you focus on growing your business.

Categorised in: Business Tips, small businesses need a cpa, What You Need to Know About Small Business Accounting

This post was written by Gonzales Group CPA