small business accounting
Picture of Carmen Leung

Carmen Leung

Carmen is Source Online's Director of Client Services, and holds a Bachelor of Business Administration with a major in Accounting, diplomas in Finance and Accounting, and a certificate in Business Administration.

6 Small Business Accounting Tips that Save Time and Money

Owning and operating a small business in BC is demanding. It’s an enormous responsibility that requires new business owners to take on multiple roles in the workplace. This approach is a great way to save money as you nurture every aspect of a growing venture. However, when it comes to developing a robust accounting strategy, operating as a one-person show is not sustainable in the long run.

As your business emerges into a successful and fully operational small or medium-sized company, you should consider outside support. Proprietors who align with other like-minded entrepreneurs and service providers discover increases in both operational efficiency and profit. Those with a well-developed business accounting system are better able to experience seamless transition periods as they grow.

Small business accounting tips that can grow with your organization are vital. Today, we’re sharing time-honoured bookkeeping and accounting tips every small business in Canada can use to develop hassle-free accounting habits.

1. Use Professional Accounting Software

business accounting tips

Your business’ books should be as immaculate and error-free as possible, which we know is easier said than done for busy small business owners. However, using an accounting software program is a great way to keep a business’s financial information and tasks well-organized and accessible.

Some features to look for when choosing an accounting software for your Canadian small business include:

  • Ease of use
  • Ability to integrate with financial apps, such as PayPal or Shopify
  • Has scaling potential
  • Designed specifically for Canadian business owners

2. Choose Between a Paper or Cloud-Based Paperless System

Keep a close eye on all your financial documents and organize them well. Be sure your system allows you to monitor important financial information and track available cash flow. If you have a mishmash of online and paper records, choose your preferred method and then stick to it. Avoid relying on both paper and paperless files to prevent the mishandling of key financial information.

Online accounting systems help streamline businesses that rely heavily on technology for their daily operations. Small companies discover several benefits after choosing online bookkeeping systems and services, including:

  • Less space is required to store documents.
  • Protect data and sensitive information with ease.
  • Conduct point-of-sales transactions from anywhere.

3. Don’t Mix Personal and Business Expenses

When building a company from the ground up, it’s hard to draw a line between personal and professional activities. After all, most small businesses not only provide a service or product, they also represent the heart and soul of their founder.

While blurring the lines between office hours and personal time is bound to happen for a new business, there should be no mixing of the two when it comes to finances. Implementing a Canyon-sized chasm to keep your business and personal finances separated is critical for a small business to run smoothly.

4. Review Business Accounting Regularly

Accurate documentation of your business’s finances will not only keep it running smoothly, but it will also save you the headache of a troublesome tax season. 

To develop good financial tracking habits, try scheduling time each week to review, record, and resolve essential accounting duties. This is a great way to keep accounts receivable and accounts payable current and up to date. 

5. Outsource Business Accounting Tasks

Bring in outside bookkeeping professionals to help ease the burden of running your books in addition to running your business. Qualified bookkeeping professionals help small business operators save precious time by executing business accounting tasks with efficiency and expertise. A bookkeeping firm can often help companies save additional money by finding ways to improve operational efficiency and locating valuable tax credits.

6. Budget For Taxes

Filing your business tax returns is inevitable when you run a successful business. The good news about this is taxes are due at the same time each year! By knowing when that expense is due, you can prepare for the projected cost ahead of time. 

Smart Business Accounting Practices Save Time and Money

Smart accounting practices can help any small business save time and money. At Source Online Bookkeeping, we help our clients do precisely that. We provide bookkeeping services that help streamline company operations, reveal opportunities for improvement, and minimize unnecessary costs. If you’re a small business owner in Canada seeking easy ways to run your books better, contact our team.

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