Bookkeeping Basics Every Small Business Owner Should Know

Running a business is rewarding, but keeping your books in order? Not always easy. Poor bookkeeping can lead to cash flow problems, missed tax deadlines, and even audits. Here’s what every small business owner should know to keep finances on track. 1. Separate Business and Personal Finances Always use separate bank accounts and credit cards for business. It’s not just cleaner, it’s critical for accurate reporting and legal protection. 2. Track Every Expense From office supplies to software subscriptions, every dollar spent should be recorded. Use tools like QuickBooks or even Excel, but make sure you're consistent. 3. Stay on Top of Invoicing Late payments hurt your cash flow. Automate invoicing where possible and follow up regularly to make sure you’re getting paid on time. 4. Reconcile Monthly Match your internal records with your bank statements each month. This helps catch errors early and avoids year-end surprises. 5. Hire a Professional Bookkeeper Even if you’re just starting out, a bookkeeper can save you hours of frustration and ensure you're compliant with taxes and reporting.