Source: Salesforce | Repost QBScott 8/18/2022 –
Small business owners thrive when they have the time to focus on the core aspects of their business. This includes customer service, product innovation, and sales. Administrative tasks such as accounting are necessary, but often have to be prioritized after other duties.
However, it’s important that entrepreneurs learn the basics of accounting for small business. This ensures that they can effectively manage cash flow, minimize their tax liability, and avoid costly penalties for accounting errors or oversights.
Consider this a resource that helps explain important or potentially confusing aspects of accounting that affect small businesses.
Accounting Basics for Small Business Owners
Some individuals only think about accounting matters once a year — before the April 15 tax return deadline. Small business owners, on the other hand, need to address their taxes quarterly and annually. This means they calculate and estimate the taxes they may owe the state and federal governments and remit payment four times a year before filing their annual returns.
On the bright side, small business owners are eligible for more tax credits and deductions than most individuals, which can lower their state and federal taxes. Some expenses, such as advertising, business meals, commercial rent and utilities, insurance, salaries, supplies, and vehicles used for company purposes, can potentially reduce your company’s taxable income.
Author: Scott Meister, CPA
I help small businesses, accountants, bookkeepers, office managers, and business owners with their accounting needs. I’ve used QuickBooks since 2002 and train folks on how to use it efficiently. I create high-quality video training tutorials for QuickBooks and post them on QBScott.com.
Certifications include: Certified Public Accountant (CPA) | Certified Bookkeeper (CB) | Advanced Certified ProAdvisor for QuickBooks Desktop | Advanced Certified ProAdvisor for QuickBooks Online | Certified ProAdvisor for QuickBooks Enterprise | Certified ProAdvisor for QuickBooks Point Of Sale