Top Four Accounting Tips For SMBs

According to, over 53% of business owners misjudged their costs during their first year of business


By Derry Cosgrove

Starting a small business can be a rewarding and fulfilling experience. There’s no better feeling than opening your doors for the first time and making your first sale or taking on your first job. But as any experienced business owner will tell you, there are a few challenges and skills you’ll need to master along the way, including managing your business’s finances.

While countless business accounting tips are available online, it can take time to pinpoint which are the most essential for your business. At Marmalade, we think every small business deserves the chance for financial success. In this blog, we’ve shared our top four small business accounting tips to help keep your business’s bookkeeping in the black.

1. Separate personal and business expenses

When you’re a start-up or newly established small business, it’s not uncommon for the lines to become blurred when it comes to spending. After all, your new business is your baby, so it’s natural for you to pour yourself into it to get things up and running. But our first top accounting tip is to establish a clear boundary between your personal and business spending to prevent it from eating into your personal budget and impacting your ability to pay bills.

One of the first steps every small business owner should take is to set up a business banking account, including a transaction account, savings account and merchant services account, which allows SMBs to accept debit and credit transactions from customers. A business banking account makes it easier to track business expenses and take advantage of tax deductions.

2. Develop a budget with a realistic spending forecast

Once your accounts are set up and ready to go, the next step is to create a budget and business plan. This involves creating realistic revenue projections and a list of forecasted spending over the year. Depending on how you manage money, many SMBs may find it easier to draft a quarterly or monthly budget — this helps you avoid over or underestimating your expenses.

According to, over 53% of business owners misjudged their costs during their first year of business. An unrealistic expectation can disrupt your cash flow and drain your company’s savings.

This mistake can be avoided by jotting down your small business ideas and strategies, including your short and long-term goals. If you’re just starting out, these don’t need to be heavily detailed, but it’s important to get your thoughts on paper, so you have something to work toward.

While bookkeeping and invoicing can be one of the more lacklustre tasks, it is arguably the most important aspect of running a small business.


3. Nail your invoicing

While bookkeeping and invoicing can be one of the more lacklustre tasks, it is arguably the most important aspect of running a small business. Business invoices keep cash running through your organisation, so getting things right every time is essential. Even minor mistakes in your invoices affect the ability to get paid and can be costly to amend.

From inputting incorrect billing information to failing to chase up late payments, there are several ways an SMB can make errors during the invoicing process. There is also an invoicing best practice businesses need to follow. Xero’s accounting tip reminds SMBs that invoices must cover specific information to be processed correctly, plus be issued appropriately to give your customers ample time to receive the invoice and process the payment.

4. Invest in accounting software

In an age where just about everything can be done digitally, investing in automation can make all the difference in the time you spend on admin duties. Automating your accounts can help you save time and money — two things every small business owner wants to hear.

A massive 85% of small businesses still use manual data entry systems for invoicing and payment reconciliation — the process of verifying financial records to align with bank statements. Automation can benefit your organisation in several ways, such as:

  • Maintaining accurate records and minimising invoicing errors
  • Improving workflow and productivity among employees
  • Cost-effective, as digital invoices cost less to process
  • Maintaining positive relationships with suppliers

SMBs are often spoiled for choice when finding the right accounting software for their organisation, and it can make the search feel overwhelming. If you are looking for a solution that can streamline your bookkeeping and cash flow, look no further than Marmalade.

A massive 85% of small businesses still use manual data entry systems for invoicing and payment reconciliation.

Marmalade — your most important payment software solution

From staying on top of invoices to maintaining healthy cash flow, Marmalade is a simple and stress-free way to improve your business’s bookkeeping. Marmalade provides automatic reconciliation of invoice payments plus issues reminders to customers for outstanding invoices, removing the resourcing required to organise your business’s finance.

Marmalade is also an innovative way for small businesses to get paid. SMBs can receive early payment on invoices issued, giving them a risk-free way to grow their business and maintain healthy cash flow.

Simply connect your accounting software to the platform and select the invoices you want to get paid early. Then the funds will be in your account in less than one business day.

We understand that many small businesses may hesitate about investing in new software that manages important payments, which is why we’ve ensured our service is safe and risk-free. Marmalade is not only an interest-free service but also charges no hidden fees or requires lock-in contracts, so customers can feel confident they’re partnering with a solution that works for them.

We created Marmalade to empower small businesses to take control of their cash flow. But we’re also playing our part in ensuring SMBs have access to reliable and helpful information to help things run smoothly. Whether you’re after cash management or financial accounting tips, Marmalade is here to help. Discover how Marmalade can help transform the way you run your business by creating an account today.