Small Business Accounting
Schultz & Associates, CPA Small Business Accounting and Tax Firm
If you can name it our accounting firm has worked with it before. Need help with a veterinary practice, we can help. Tier 2 supplier? Engineering, construction, medical, dental, or robotics. Need help with a cleaning agency, we can help. Need help with a sandwich shop, we can help. And as you grow we will be there to help as issues become more complicated.
We find that Quickbooks works well for most small business owners. That is why our staff is trained to work with and assist clients with Quickbooks, whether it be a visit to your office or a quick question over the phone.
Accounting to Meet your Banking Requirements
Often when a bank provides a loan to a business it is with the stipulation that financial statements are provided on an annual basis. Often times the bank with require a compiled financial statement. Our firm can put this information for you. We can create all the necessary note disclosures and provide the bank with a balance sheet, income statement, and cash flow statement. We will also included our Compilation Report. it is a complete and professional looking package. Often the bank will require a personal financial statement for all those who have guaranteed the loan. Our firm can also help with the preparation of this personal financial statement.
Five Tips to Help with Your Small Business Accounting
- Plan for Capital Purchases – Planning for growth is difficult. Knowing when it is time for a new server or copy machine is a bit more predictable. Budget how much you will need to spend on capital equipment over the next five years. Once you know the amount needed transfer 1/60th of that amount on the same day of every month to the company saving or money market account.
- Pay Yourself Consistently – Many people, articles and blogs tell business owners to “pay themselves first”. This seems to be a confusing concept. Does that mean that if there isn’t enough cash then the small business owner should pay themselves rather than the electric bill. How does the business move forward? In the dark perhaps. Instead pay yourselves a consistent wage, draw, distribution or whatever you call it. make it the same every time. Do not use the business as your personal bank. If there are excess profits schedule these consistently as well. Quarterly profit distributions are reasonable.
- Track Expenses – This seems obvious. But more specifically track expenses using categories that make sense and are useful to you. Design a chart of accounts that provides the level of detail you need and helps you to easily track the most important expense lines in your business.
- Record Deposits Correctly – Most small business owners use an outside accountant to prepare there tax return. So be sure that deposits that are received from loans are properly detailed and reported on the books. A miss posted shareholder loan could end us causing the business to pay tax on income that was not earned. It would also result in an overstatement of revenue.
- Don’t Forget about Taxes – Small business owners pay their taxes differently. Business owner’s may pay them weekly, monthly or quarterly or annually. Often those who pay weekly are in good shape. Business owners who pay quarterly often can underestimate how much tax they will owe. A general rule that will keep those quarterly payer’s out of trouble would be to put $40 of every $100 you draw into a savings accounting. Often this will be too much. But you will not be short.
Give us a call if you have any concerns about your small business needs.