BlodgettVentures.com

Keep your small business accounting system simple.

 I have seen quite a few companies struggle through the process of setting up and maintaining the financial side of their business. They usually overspend on this because they are worried about messing things up.

Here are some basics:

1) Keep things simple. If you are starting or already operating a small business, get a simple accounting package such as QuickBooks or Quicken. While you are small, keep your system simple, and try to do the work yourself or with a part-time helper who knows how to set up and maintain a simple bookkeeping system. You don't need a high-powered controller, chief financial officer or accountant in the early stages. You can always hire one by the hour to help you at month-end and year-end closings.Your CPA may be able to recommend someone.

2) Use a payroll service. If you have payroll, use a payroll service like ADP or Paychex. They do it inexpensively and will be able to expand with you as your business expands.

3) Get a good CPA. If you haven't already done so, find a good CPA to handle your business tax matters and counsel you on issues related to maintaining your financial systems.