If you own a small business, then you know how stressful it can be to keep your books in order. However, keeping your books up to date is key to the financial success of your company. In this article, we offer 5 essential tips for keeping detailed control of your finances and avoiding tax problems.

  1. Keep a detailed record of your income and expenses

Keeping a detailed record of your income and expenses is key to the financial success of your business. You must keep strict control of everything that comes in and out of your accounts to make smart decisions about your finances. 

An easy way to do this is by using digital tools such as accounting apps or spreadsheets. Additionally, make sure to categorize your expenses and income correctly so that you can identify areas where you can save or where you need to invest more.

 

2. Separate your personal finances from your business finances

It is important to separate your personal finances from your business finances to have a clear view of the profits and losses of your company. An effective way to do this is to open an exclusive bank account for your business. 

You can also use digital tools, such as Excel or Google Sheets, to keep a detailed record of your business transactions. This will allow you to make more informed financial decisions and avoid mixing personal expenses with those of your business.

 

3. Control your stock

Keeping a detailed record of your available products and their value is crucial for inventory control. Summing up the total will give you an overall value of your entire inventory. 

Additionally, recording information about your suppliers and customers will allow you to have all their data at hand and speed up processes with your frequent contacts. The use of POS systems can help you automate accounting processes and easily track the state of your business.

 

4. Know your tax liabilities

Get informed about the taxes that your business must pay and make sure to comply with the established deadlines. If you have doubts, seek the advice of an expert in the field. 

Knowledge about your tax obligations will help you save money by avoiding unexpected expenses and maintain a good reputation in the market. Keep your business in order and avoid problems with the tax authorities.

 

5. Set up a database with your customers and suppliers

Organize your frequent contacts in a database. Record information about your customers and suppliers detailing their data and transactions. Not only will you know how much money you owe your suppliers or how much your customers owe you, but you will also have a clearer view of possible business partnership and networking strategies.  

Again, digital charting tools such as Excel or Google Sheets will help you to make the management of this information more efficient. It is vital that you keep this database up to date, and make sure you have the necessary details for each contact.

Keep your company tax compliant and avoid unnecessary fines! At Voraus we are here to help you better understand the tax requirements that affect your business. Don't hesitate to contact us to ensure your company's financial success - don't wait any longer to protect your finance