These little business accounting steps will give you the confidence to help you cover your bases;
Get a Bank Account, First
Once you have registered your business, have a separate bank account to keep records distinct. Having said that, LLCs, corporations, and partnerships are legally required to have a bank account separately for business. However, sole proprietors don’t need a separate account legally, but then it is recommended.
Begin by opening a business checking account. Once you have done that then a savings account may be great to help you organize the funds and further plan for taxes. Before starting the process, look around for business accounts and compare the fee structures. The majority of business checking accounts have fees that are higher than personal banking, so watch out.
Keep a Track of the Expenses
Meals and entertainment, out of town business travel, receipts for gifts, and vehicle-related expenses, all should be taken care of. However, keeping your business low-key by starting it at home can be a great way to maintain a low overhead. Also, you will qualify for some tax breaks.
Develop a Bookkeeping System
For that, you can go with a DIY route while using various software available. However, it is suggested to outsource it as that way you can ensure accuracy plus you will get some professional advice on managing it further.
Develop a Payroll System
You will need to decide on a proper payroll schedule for your employees and ensure that you are withholding the right taxes. For independent contractors track the amount you will be paying each if any.
Know about Import Tax
Based on your business model you should be planning to buy and import goods from other countries in order to sell in your store. However, when importing products, you are likely being subject to taxes and duties. Well, these are fees that your country usually imposes on incoming goods.
Decide How You would be Paid
As soon as sales start rolling, you should decide how you would accept the payments. For example; should it be through credit card, internet banking, or wallet. And for that, a merchant account should be opened to allow your business to accept online payments from customers. In case you use a third party payment processor, then there would be extra charges.
