As a trades business owner, you have a lot on your plate. You are responsible for managing projects, coordinating with clients and subcontractors, and ensuring that your team is working efficiently. In the midst of all this, it can be easy to overlook the importance of accounting. However, accurate accounting is critical to the success of your business. It helps you track your expenses, manage your cash flow, and make informed decisions about your finances. Here are some tips on how to simplify your accounting as a trades business owner.
Use Cloud-based Accounting Software
The first step to simplifying your accounting is to use cloud-based accounting software. There are many options available on the market, including QuickBooks Online. These programs allow you to track your income and expenses, generate invoices, and reconcile your bank accounts. They also offer a range of reporting options, so you can get a clear view of your business’s financial health.
Keep Track of Your Receipts
One of the biggest challenges of accounting for trades businesses is keeping track of receipts. You may have expenses spread across multiple projects, and it can be difficult to keep everything organized. To simplify this process, consider using a receipt tracking app like Dext. This will allow you to take a picture of your receipts and automatically categorize them in addition to integrating with Quickbooks Online. This saves you time and ensures that you don’t miss any deductible expenses.
Separate Your Business and Personal Expenses
It’s important to keep your business and personal expenses separate. This not only makes accounting easier, but it also protects you in case of an audit. To do this, open a separate bank account and credit card for your business. Use these accounts exclusively for business expenses, and make sure to record all transactions in your accounting software.
Hire an Accountant
If accounting is not your strong suit, consider hiring an accountant. KWB can help you set up your accounting systems and workflows, reconcile your accounts, and prepare your taxes. We can also offer valuable advice on financial and business planning and help you make informed decisions about your business. Hiring an accountant can save you time and money in the long run.
Simplifying your accounting as a trades business owner is critical to the success of your business. By using cloud-based accounting software, keeping track of your receipts, separating your business and personal expenses, setting aside time for accounting, and hiring an accountant, you can stay on top of your finances and make informed decisions about your business.
Become a KWB Client
We can help you simplify your accounting, improve your profit, and achieve your goals. Book an introductory meeting to discuss your unique needs and goals!