Tips to Properly Manage the Accounting of your Small Business Enterprise

To do business for a long time, you have to be in your business. This is why careful management of the accounts of your SME is a key element that will contribute to the success of your entrepreneurial project. If you are just getting started, follow these tips to get on well.

1. Obey the law It is not enough to do your bookkeeping to be in good standing.

Above all, you need to adopt good online accounting services, because it is mandatory to file a tax return in Canada. This declaration will depend on the legal form of business you have created. "When the business is incorporated, it is a legal person, so the company is considered a person within the meaning of the law and it requires to have its own tax return," says Simon Lapointe. If it is a sole proprietorship or registered business, the owner adds the income and expenses related to the business to their personal income tax return because they vouch for everything the company does.

2. Consider taking accounting training

You can also take accounting training or a small business accounting course. "It's good to do this and some bookkeeping software offers fairly straightforward online training," says Simon Lapointe. Online learning platforms will also help you improve your knowledge.

3. Be organized and keep track of your expenses

To be able to do the accounting of a small business, it is necessary to note, itemize and classify accounts receivable and payable, expense receipts and purchase orders. “The famous shoebox where the entrepreneur deposits his invoices and gives them to his accountant is not effective for anyone. It is now possible to scan invoices and documents or take pictures of them to keep them in the archives, ”emphasizes Simon Lapointe. Why put off filing your paperwork until tomorrow when you can do it day to day?

4. Perform rigorous bookkeeping

Bookkeeping encompasses the entire day-to-day process of writing down transactions, categorizing them, and reconciling your accounts. “Typically, the bookkeeper records transactions and it costs less than an accountant who finalizes financial statements and tax returns. The Operio cloud platform also offers a turnkey service including bookkeeping and financial statements, ”adds Simon Lapointe.

Finally, according to Simon Lapointe, other accounting advice such as opening a business bank account, to "separate business money from your personal money and facilitate the accounting that comes next", and " putting a budget in place, to compare actual sales and expenses with those planned ”, will allow you to be fully equipped to do the accounting of your small business and see it grow.