For many small business owners, managing finances is the most difficult part of running a company. Part of it stems from anxiety. Think about. How to do accounting for a small business. Open a bank account. Track your expenses. Develop a bookkeeping system. Set up a payroll systems. Investigate import tax. Determine how you'll get paid. Establish sales tax procedures. Determine your tax obligations. What Is Small Business Accounting? A Beginner's Guide · 1. Open a Separate Bank Account · 2. Record All Income and Expenses · 3. Select the Accounting. Other smaller firms may require reports only at the end of the year in preparation for doing taxes. In bookkeeping, you have to balance your books at the end of the year. Select the Accounting Method Before you establish a bookkeeping system, you need small business accounting for dummies choose a method of accounting for your business. International purchases are tax exempt for US-based businesses. This ensures that the income and expenses are matched accurately during the period represented in the financial statements.