Best Small Business Accounting Practices

Tally Services in Fort Collins, Colorado has come alongside businesses of all sizes to improve and safeguard their accounting and bookkeeping practices. Over the years, we've recognized several best practices for accounting success in small businesses. Read these tips to ensure your business is safe and set up in a way that makes sense for your success:

Avoid Commingling

Commingling is one of the most dangerous things we see from a liability perspective. When personal and business financial accounts are mixed, the business owner puts him or herself at risk for loosing not only their business assets, but personal assets at risk in the event of a creditor, the federal government, or a suing customer. Learn more about commingling and why it should be avoided in this blog post. 

Segregation of Cash Duties

Many small businesses have the practice of putting one person in charge of all duties related to cash from the accounts payable and receivable. This puts the business at great risk because there are no checks and balances and one person has the ability to to steal from the company without anyone else knowing. Dividing the cash responsibilities and segregating the tasks, allows for a change to "cross-check the work of each function, thereby increasing the chance of detection, while reducing the chance of concealment without collusion," according to the Association of Certified Fraud Examiners. Read this Tally Services blog to learn more about how to implement a segregation cash duties plan and why it's important. 

Embezzlement Protections  

All businesses, large and small should be aware of the potential risk of embezzlement by partners, employees, and anyone handling money for the company. Be sure to segregate cash duties, review your statements closely, stay involved, and pay attention. It's easy to trust someone, but it's important to remain vigilant. Read this blog to understand ways in which you can protect your business from embezzlement.  

Stay Organized

We tend to talk about being organized a lot, but we really can't stress it's importance enough. Being organized will not only help you recognize if anything is amiss, but it will also help you stick to system and prepare for taxes. Use these tips to get and stay organized. 

Ask for Help

We recognize accounting and bookkeeping are not everyone's forte and that's okay! Tally Services in Fort Collins, Colorado is here to help you get organized, create a system, and find solutions that work for your individual needs. Furthermore, having a second set of eyes will give you the peace of mind that your business accounts are up-to-date and safe. Contact us today to learn more about how we can help you succeed!