You have been in business operation for years ( or about to launch a new business) – congratulations! It takes perseverance and passion to get to the point you’re at. However, as you know, business ownership is a constant flood of satisfying milestones coupled with expanding to-do lists. With your launch, you’ll need to get on top of the accounting tasks that come along with owning a business. This list of 5 small business accounting steps will give you the confidence to know you’ve covered your bases, and are ready to move on to the next item on your business to-do list!

1. Open a Bank Account
After you’ve legally registered your business, you’ll need somewhere to stash your business income. Having a separate bank account keeps records distinct and will make life easier come tax time. Note that LLCs, partnerships, and corporations are legally required to have a separate bank account for business. Sole proprietors don’t legally need a separate account, but it’s definitely recommended.
Start by opening up a business checking account, and then any savings accounts that will help you organize funds and plan for taxes. For instance, set up a savings account and squirrel away a percentage of each payment as your self-employed tax withholding. Next you’ll want to consider a business credit card to start building business credit. Corporations and LLCs are required to use a separate credit card to avoid commingling personal and business assets.

2. Track Your Expenses
The foundation of solid business record keeping is learning to track your expenses effectively. It’s a crucial step that allows you to monitor the growth of your business, build financial statements, keep track of deductible expenses, prepare tax returns, and support what you report on your tax return.
Right from the beginning, you should establish a system for organizing receipts and other important records. This process can be simple and old school, or you can use a service like Achebe Professional Service Limited
There are five types of receipts that you should pay extra attention to:
• Meals and Entertainment
• Out of Town Business Travel
• Vehicle Related Expenses
• Receipts for Gifts
• Home Office Receipts

3. Develop a Bookkeeping System
Before we jump into establishing a bookkeeping system, it’s helpful to understand exactly what bookkeeping is, and how it differs from accounting. Bookkeeping is the day-to-day process of recording transactions, categorizing them, and reconciling bank statements.
Accounting is a high level process that looks at business progress and makes sense of the data compiled by the bookkeeper by building financial statements.
As a new business owner, you’ll need to determine which bookkeeping method to use.

4. Set up a Payroll System
As a business owner. However, maybe you’ll hire a part-time employee to help you out, or a freelancer to design your logo. Right away, you need to establish whether that individual is an employee or an independent contractor. For employees, you’ll need to decide on a payroll schedule and ensure that you’re withholding the correct taxes; Achebe professional services can help with this. For independent contractors, be sure to track how much you’re paying each person.

5. Investigate Import Tax
Depending on your business model, you may be planning to purchase and import goods from other countries to sell in your business. When importing products, you’ll likely be subject to taxes and duties. These are fees that your country imposes on incoming goods. Take the time to learn about importing goods into your country, and the associated taxes, so that you know the rules from the get-go.

Conclusion
Running a business can be an overwhelming process, but if you follow this list, with professional service from Achebe.
Contact us at
07051762711
hilary@achebe.ng