Accounting is an essential function for any business, whether a large corporation or a small business. After all, it involves your company’s finances. If you have just started your own business, here are the general steps to commencing your company’s accounting function.
- Open a bank account for your small business. It is always strongly recommended for small business owners to separate their business accounts from their personal accounts. This will surely help make things easier especially when tax time comes. Make sure to open a bank account solely for your small business. You can start with a checking account which you can use for certain purchases and open a savings account next to stash funds for unexpected expenses. It will also be good to open a business credit account to build your firm’s credit history.
- Establish a bookkeeping system. Bookkeeping is different from accounting services in California in the sense that the former is done daily. With bookkeeping, you will need to record financial transactions on a daily basis. These records should be organized and kept for accounting purposes at year-end.
- Keep track of company expenses. Keeping track of your company’s expenses will help you monitor the growth of your business. It will also help you create a budget and prepare for tax returns. As much as possible, keep receipts of every expense the company has incurred. Organize and store them in a place where you can easily access them for taxation purposes.
- Develop a payroll system. Your employees need to be paid. Taxes will have to be withheld, too. That is why it is important to develop a payroll system that you can use for your small business. You can engage the services of a professional tax and accounting firm in the San Francisco Bay Area, California to help you in setting up and maintaining the right payroll system for your operations.
- Choose payment methods with which you will receive payments. There are different payment gateways you can choose from. Pick out that is convenient and good for your operations and your location.
- Know the taxes you will be paying. It is your obligation to pay taxes. Learn more about the kind of taxes your company will be paying and how much these taxes amount to. Find the right tax and accounting solutions in Fremont California for your business.
Unified Accounting & TAX helps our clients with accounting startups and other accounting and taxation services. If you have questions about our services, don’t hesitate to talk to our team at 510-299-2131.