Decide between accrual, cash, or modified cash basis accounting based on the needs of your business. The accrual method follows the matching principle, while the modified cash basis allows you to track accounts payable and receivable, combining features of both cash and accrual systems.
Invest in accounting software like QuickBooks to streamline tracking expenses, managing invoices, and recording financial transactions. Ensure the software can scale as your business grows.
Use automated time-tracking and payroll systems to capture project-related costs and employee hours, which can be integrated with your accounting software for accurate job profitability reports.
Customize your chart of accounts to manage your customer acquisition costs, operating expenses, and product-specific costs. This allows you to better track key financial metrics, such as ROI and…