BLOG Demystifying Small Business Accounting: Essential Tips from Don Borgat, CPA May 03, 2025

Running a small business comes with numerous challenges, not the least of which is accounting. Fortunately, expert advice is at hand. With over two decades of experience, Don Borgat, CPA, is here to demystify small business accounting, offering essential tips that can help streamline your financial processes and improve your bottom line.

Understanding the importance of accounting for small businesses is crucial. It not only keeps track of income and expenses but also monitors overall business performance, aids in budgeting, and ensures compliance with tax obligations. As such, having a robust accounting system is imperative for any small business owner.

One of the foundational tips from Don Borgat is to separate personal and business finances. While it may seem convenient to use the same account for both, doing so can lead to confusion and complicate tax filing. Opening a dedicated business account ensures that your business transactions are transparent and traceable, paving the way for more accurate bookkeeping.

Accurate record-keeping is another essential aspect of small business accounting. Don stresses the importance of maintaining organized records of all transactions. This practice not only helps in managing cash flow but also eases the burden during tax season. Investing in reliable accounting software can significantly enhance this process. These tools automate many bookkeeping tasks, providing more time to focus on critical business activities.

Regular financial reviews are critical for making informed decisions. Don recommends conducting monthly reviews of financial statements to gain insights into your business’s financial health. Analyzing profit and loss statements, balance sheets, and cash flow statements at regular intervals will help you identify trends, measure progress against financial goals, and make strategic decisions to drive growth.

Tax compliance is a key area where small business owners need to tread carefully. Early tax preparation is vital to avoid last-minute stress and potential penalties. Keeping abreast of the latest tax regulations and deductions available to small businesses can significantly reduce your tax burden. Don Borgat advises working with a seasoned CPA who can offer guidance specific to your business needs and ensure compliance with tax laws.

Cash flow management is another major focus. Many small businesses face cash flow challenges, but effective management can alleviate these issues. Don suggests monitoring cash flow closely to address any shortfalls before they impact operations. He also advises maintaining an emergency fund to safeguard against unexpected expenses or downturns in business.

Finally, don’t overlook the value of professional advice. Engaging with a qualified accountant like Don Borgat can provide small business owners with invaluable insights into their financial operations. An experienced CPA offers more than number crunching; they bring expertise in strategic planning and financial forecasting which can be crucial for long-term success.

In conclusion, small business accounting may seem complex, but with the right tools, practices, and professional guidance, it becomes much more manageable. By implementing these essential accounting tips from Don Borgat, CPA, you can maintain the financial health of your business and set the stage for sustainable growth. Trust in knowledge and expertise can indeed transform the way you handle your business’s finances, paving the pathway to success.