As a small business, you need to keep track of every penny. Being a small business means working effectively with a smaller budget. If you are interested in keeping your small business running and growing, you need to keep up with all of your money. Here are some of the top missed items of small business financing that you need to keep track of.
Rounding instead of keeping track of each penny
For the sake of taxes, bookkeeping, and income, it is always best to keep track of the dollar and penny amounts of any income and any charges. Some small businesses tend to round, rather than track each dollar after invoices are created or paid, which can lead to serious bookkeeping issues. Inside of bookkeeping software or in actual written ledgers, write down exact amounts. At the end of each quarter, you will have an accurate amount of your losses and gains.
Not keeping track of tax deductible expenses
When you are performing small business accounting, being as detailed as possible is the way to keep business finances in check. Next to each tax deductible purchase or tax write off expense, make sure it is noted that the purchase can be taken off of taxes. During tax time for businesses, you may notice that your tax burden is smaller than it was in prior years due to more succinct accounting.
Check on your insurance premiums regularly
As a business, you will need certain forms of insurance without question. Liability insurance for your company will be a necessity no matter your field. For some industries and jobs, you will also need professional insurance and if you run a brick and mortar location, the storefront and the property will need to be insured. Instead of sticking with the same premiums that you have been paying in the past, check on your premiums once to twice a year. You may find that your premiums decrease due to low to no claims or due to your business stability.
Apply for grants
Grants often come up for small businesses, both through government funds and through companies that offer aid to businesses. If you want to increase your business finances without spending any money, applying for grants is a great way to bring in more money. If you do not have the ability or the time to spend on writing grants, you can hire a writer to help you prepare for the application of grants. Not looking for grants that apply to your small business is a mistake the leaves money on the table.
Small things, such as using financial software, keeping track of receipts, and going over your insurance policies each year are small but missed items of small businesses finances. Many small business owners have a lot on their plate. When you are attempting to run a small business, plus keep up with your personal life, things can get rushed. Keeping track of these small items will take only a few hours a week and will make sure you are operating at an optimal financial level.