Accounting for your own business is oftentimes the biggest stress factor for small business owners. Without the proper preparation and tracking, not having the right cash flow understanding can be the difference between toy being a thriving business and one that has to shut its doors. Without small business accounting, Weeki wachee businesses are expected to fail, with half of them closing their doors within the first year, while a staggering ninety-five percent of all businesses will close before they hit five years of service and operation. These statistics are the reasons why you need to be thinking about the back end of your business from day one.

Knowing the Type Of Company You Operate

Before you can begin to start tracking your income and seeing profits, you need to have a clear understanding as to which type of company you are running. We have all heard the terms LLC, INC, and sole proprietor but do you what the difference is and why it is so important? Well with small business accounting, Weeki Wachee business owners need to know this information because each type has a different approach to taxes, pay structure, or even an acceptable way to reimburse yourself. It is strongly recommended that you understand the differences and benefits of each type of business in order to pick a direction that will best suit you and your business.

Tracking and Collecting Payments Are Important

Not only is it important for a business to have a sales process for making money, but a collection process is also important. Having all your contracts, invoicing and late fees in one place can make such a big difference on your company’s books. Having all your agreements and due dates in one space is important because it helps you stay organized and makes it easier for you to perform your small business accounting. Weeki Wachee Business owners who are not that well versed in all things accounting and bookkeeping will find it much easier to figure out when everything is organized and easy to locate.

*Disclaimer: The views expressed here are those of the authors and do not necessarily represent or reflect the views of Suncoast CPA Group*