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5 Accounting Tips Every Small Business Should Know

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Small business accounting is a highly specialized field. It takes a specific knowledge of the needs, pressures, and operations of small businesses to get the job done right.

Money matters, especially for a small business. When margins are small and budgets are tight, every penny means that much more.

Luckily, there are some simple tips that small business owners can use to set themselves up for financial well-being:

  • Separate business and personal expenses
  • Track every business expense
  • Properly classify your business
  • Choose an accounting software
  • Outsource to an accountant

Ultimately, though, a professional small business accountant is the best option for entrepreneurs looking to secure the financial health of their business.

Think about it: unless you’re an electrician, you wouldn’t try to re-wire your building by yourself. So why is balancing your books any different?

Tracy Jones CPA consists of experienced Houston accountants who specialize in accounting services for small businesses.

If you’re looking for bookkeeping services for your small business, give us a call at 832-698-7011 or visit today.

In the meantime, try incorporating these five essential tips into your small business’s operations and start your journey towards financial success.

1) Separate Business and Personal Expenses

Often, small business owners put extensive personal resources into their operations. This is especially true if you’re the sole employee, you operate out of your home, or you’re still working to get your business off the ground.

Your small business might feel like your life. But, financially speaking, it’s important to keep the two separate for several reasons.

First, knowing your business from your personal expenses is huge when it comes to taxes. Make sure to track EVERY expenditure you make for your business and keep it all together.

Then, when it’s time to file your taxes (or hand your financials off to your small business accountant), your job will be that much easier.

Second, you need to keep personal and business finances separate as a matter of personal protection. Often, a young business without a credit history will need personal guarantees for loans, leases, and credit lines.

However, as a small business owner you need to make sure to protect yourself from any personal financial liability as soon as possible. Meticulously separating your expenses, incorporating your business, and using credit responsibly will help you get there.

2) Track Every Business Expense

This tip is simple: you need to know how much you’re spending, when you spent it, and what you spent it on.

Tracking expenditures is important for aforementioned tax purposes. But it’s also essential for you to know how your business is performing, financially.

Fundamentally, net profits equal earnings minus costs. It’s impossible to know your profits if you don’t have an accurate picture of what your costs are.

3) Properly Classify Your Business

Incorporating your business is an essential first step to both grow your operation and protect yourself from personal financial liability.

When it comes to how you’ll classify your business, however, you have a few different options. For example, some legal classifications of businesses include C Corp, S Corp, or limited liability corporation (LLC).

Each classification indicates different corporate structures and has different benefits. Make sure to research your options thoroughly and choose the option that best suits your business and your needs.

If you’re looking to incorporate your small business, Tracy Jones CPA can help you understand your options and complete the incorporation process.

4) Choose An Accounting Software

If you have a small business, you need a software to help you keep track of your business’s finances.

Most accounting software works by syncing with your credit cards and bank accounts to automate your bookkeeping.

Despite this, you do need to make sure that you have a general understanding of accounting principles to make sure that the software correctly categorizes information and financial reports are prepared correctly.

There are many different options when it comes to accounting software. Some of the most popular options include QuickBooks, Xero, FreshBooks, and Wave.

Different software options have different strengths and weaknesses. Ultimately, which software is best for you depends on your specific needs.

If you’re ready to look into an accounting software for your business, Tracy Jones CPA offers specialized QuickBooks support to get you started.

5) Outsource to An Accountant

While the above tips are all necessary, they constitute only the very basics of accounting for your small business.

Accounting in its entirety is complex and specialized. Its arguably one of the most important tasks behind a successful business.

A good accountant can help you understand how your business is doing, where it’s come from, and how you can expect it to grow in the future.

Hiring an accountant to handle your bookkeeping is one of the best things you can do for your business’s success.

Your accountant can keep track of your expenses and earnings, prepare financial documents like profit-and-loss statements, balance sheets, and cash flow projections.

If you’re ready to take the next step in your small business’s growth, Tracy Jones CPA offers expert small business bookkeeping services.

Houston Small Business Accountant

If you’re searching for a small business accountant near me, Tracy Jones CPA can help. We offer small business accounting services, business-focused financial counseling, and more.

Our specialized small business services include:

  • Accounting
  • Bookkeeping
  • Outsourced bookkeeping
  • Tax planning and preparation
  • Business consulting services
  • Financial statement preparation
  • Cash flow management
  • Budgeting and forecasting
  • QuickBooks™ support
  • Payroll services
  • Part-time Controller services
  • New Business incorporation and advisory


Tracy Jones CPA offers accounting solutions for all your small business’s needs. We’ll help you make the best financial decisions for your business’s present, and your future.


Running a small business is a difficult, but rewarding, undertaking. We want to make sure that your passion and hard work pays off and your business thrives.


Whether you’re just starting on your small business journey, or you’ve been operating and growing for years, Tracy Jones CPA is ready to help.

We’re the best small business’s accountants in Houston. Give us a call at 832-698-7011 or visit and see for yourself today.