Small Business Accounting Hawaii
When you hear the word "accounting", what comes to mind?
Well, if you're not an accountant like us, you probably aren't that excited to hear that word.
Because of that, accounting can be a blind spot and even become a liability to your small business. With that said, accounting deserves your attention and doing so is essential to you and your business's success.
WHAT IS ACCOUNTING?
Accounting in its simplest essence is: recording and reporting of financial data.
There are two areas that makes use of this recording and reporting of financial data.
- Taxes. Financial reporting to the government is important to determine how much, if any, taxes are owe.
- Strategy. Most often overlooked, the use of financial reports can be used for strategy to benefit a small business. Essentially, you are reporting to yourself to make sense of your business finances, cash flow, profit and loss statements, break-even analysis, balance sheets, etc. This can all be used to create ideas, plan, and take action in your business.
For whatever use your financial data is being used for, whether it's for reporting or strategy, it is very important to keep accurate and up-to-date financial data of your business.
There are 4 things that you can do to stay on top of your accounting:
- Choose an accounting software program. We use and recommend Quickbooks. It's very simple to use, easy, user friendly, and a very powerful accounting software program. It will also allow us to sync your financial data seamlessly for tax reporting time!
- Track all income and expenses. Track all monies coming in and going out and put it into your accounting software program.
- File your tax returns. How often you should file for your business? The general recommendation is by business size. The more larger your business is, the more often you should file.
- Generate financial reports. There are two essential reports you should concern yourself with (at minimum): (1) Profit And Loss Statements (P&L Statements) also called Income Statements, (2) Balance Sheets which is an account of your business's assets and liabilities.
To most small business owners, this is the least attractive part of running a business. But it is one of the most essential things that needs to be acknowledged in order for you to strategize and report. In all, it's essential for businesses to succeed.
Since this area is the least attractive part of a small business it should be the very thing to outsource and delegate out. That's where we, at Personal Accountant Inc., come in!
Call us today at (808) 674-0700 to set up your small business accounting and/or for a free quote!
Just fill in the form below for your instant quote!