Accounting Basics For New Businesses
Ryan Born is Founder & CEO of AudioMicro (http://www.audiomicro.com/). In this video he speaks about accounting basics for new businesses.
- Take advantage of cloud-based solutions
- Get an AMEX & use it for all expenses
- Link the AMEX to your QuickBooks online
- Open a business account at a bank that links with QuickBooks online
- Use that account for all business transactions
- Bucket expenses & apply receivables
A lot of people asked me as a business owner and a CPA, what are some things will do to get their books in order, their accounting. Well, these are the 3 things I recommend.
First is get yourself a cloud based accounting solution. I highly recommend Quikbooks online. It's affordable and it's backed up constantly for you all in the cloud.
Secondly, get yourself and American Express card and try to put as many of your expenses on that American Express card and make sure you link that American Express card into your Quickbooks online. And, the reason to do that so that everyone of your purchases automatically flows into your books. You don't even have to type the amounts. They'll all just flow right in.
Finally, get your self a business bank account at a bank that also integrates with Quickbooks online. Most major banks do so it's typically not that much of a concern but Bank of America and California certainly links their very popular bank. And, once you link that account make sure all of your business transactions go through that so all of your receivables, all of your cash receipts that are coming from your customers, you're depositing it into that account. Those are gonna flow right into your accounting system.
All of your vendors that you pay that you write checks to. Those are gonna automatically flow right into your accounting system. And, at that point all you really need to do is bucket the expenses, choose what type they are and apply the receivables meaning choose which customer they go to. Everything is flowing right into your accounting system automatically. No typing amounts, etc. So, those are the 3 tips I like to offer people when they're first getting started keeping their books.