Top Bookkeeping Tips for Small Businesses in Great Falls, Montana

Feb 27

Running a small business in Great Falls, Montana, comes with its own unique set of opportunities and challenges. From the stunning landscapes to the tight-knit community, Great Falls is a fantastic place to grow a business. However, managing your finances effectively is key to long-term success. Whether you’re a new entrepreneur or a seasoned business owner, staying on top of your bookkeeping is essential.

At Meadowsweet Bookkeeping LLC, we’re here to help you navigate the financial side of your business with ease. In this blog post, we’ll share top bookkeeping tips tailored specifically for small businesses in Great Falls, including insights into Montana’s tax laws and local resources.

1. Understand Montana’s Tax Landscape

Montana is known for its business-friendly tax environment, but it’s important to understand the specifics to stay compliant and maximize your savings. Here’s what you need to know:

No Sales Tax: Montana is one of the few states without a statewide sales tax. This is a huge advantage for businesses, but it also means you need to focus on other types of taxes, like state income tax and payroll taxes.
Corporate Income Tax: Montana has a corporate income tax rate of 6.75%. If your business is structured as a corporation, ensure you’re setting aside funds for this obligation.
Individual Income Tax: If you’re a sole proprietor, LLC, or S-corp, your business income will be taxed at Montana’s individual income tax rates, which range from 1% to 6.75%.
Property Tax: Montana has property taxes that vary by county. If you own business property in Great Falls, be sure to account for this in your budget.

Pro Tip: Work with a local bookkeeper or accountant who understands Montana’s tax laws to ensure compliance and identify potential deductions.

2. Leverage Local Resources

Great Falls offers a variety of resources to help small businesses thrive. Take advantage of these to streamline your bookkeeping and grow your business:

Great Falls Development Authority (GFDA): The GFDA provides support for local businesses, including access to grants, loans, and networking opportunities.
Great Falls Chamber of Commerce The Chamber offers business consulting, workshops, and networking resources to help you grow your business and operations.
Local Banks and Credit Unions: Many local financial institutions offer small business banking services, including business checking accounts, loans, and merchant services.

Pro Tip: Partner with a local bank that understands the needs of Great Falls businesses. They can offer personalized service and help you manage cash flow effectively.

3. Separate Business and Personal Finances

One of the most common mistakes small business owners make is mixing personal and business finances. This can lead to confusion, missed deductions, and even tax issues. To avoid this:

Open a dedicated business bank account.
Use a business credit card or debit card for all business expenses.

Pro Tip: Use accounting software like QuickBooks Online to track business transactions separately and generate accurate financial reports.

4. Track Expenses Religiously

Keeping track of every expense is crucial for managing cash flow and preparing for tax season. Here’s how to stay organized:

Save digital copies of receipts using apps like Expensify, Receipt Bank or utilize QuickBooks Online receipt management feature. The IRs requires business owners to hold onto their receipts for 7 years.
Categorize expenses accurately (e.g., office supplies, travel, utilities).
Reconcile your accounts monthly to catch errors, fraud or missing transactions.

Pro Tip: Set aside time each week to review and log expenses. Consistency is key to staying on top of your finances.

5. Plan for Seasonal Fluctuations

Great Falls’ economy can be influenced by seasonal trends, especially in industries like tourism, agriculture, and retail. To manage cash flow during slower months:

Create a budget that accounts for seasonal variations.
Build an emergency fund to cover unexpected expenses.
Offer promotions or diversify your services to generate revenue year-round.

Pro Tip: Use cash flow forecasting tools to anticipate highs and lows and plan accordingly. QuickBooks Online has the feature.

6. Stay Compliant with Payroll Taxes

If you have employees, staying compliant with payroll taxes is essential. Montana has specific requirements for withholding state income tax, unemployment insurance, and workers’ compensation.

Use payroll software like Gusto or ADP to automate calculations and filings.
Keep detailed records of wages, taxes, and benefits.
File quarterly and annual payroll tax reports on time.

Pro Tip: Consider outsourcing payroll to a professional to ensure accuracy and compliance.

7. Work with a Local Bookkeeping Professional

While DIY bookkeeping can work for some businesses, partnering with a local bookkeeping professional can save you time, reduce stress, and provide valuable insights. At Meadowsweet Bookkeeping LLC, we specialize in helping Great Falls businesses:

Set up and maintain accurate books.
Stay compliant with Montana tax laws.
Improve cash flow and profitability.

Pro Tip: Even if you handle day-to-day bookkeeping yourself, consulting a professional for quarterly book review and and financial planning can be a game-changer.

Final Thoughts

Running a small business in Great Falls, Montana, is an exciting journey, but it requires careful financial management to succeed. By understanding local tax laws, leveraging community resources, and implementing smart bookkeeping practices, you can set your business up for long-term growth.

If you need help with bookkeeping, tax compliance, or financial consulting, Meadowsweet Bookkeeping LLC is here to support you. Let’s work together to take the stress out of bookkeeping so you can focus on what you do best—growing your business in the Treasure State!

About Meadowsweet Bookkeeping LLC
Meadowsweet Bookkeeping LLC is a trusted partner for small businesses in Great Falls, Montana, offering bookkeeping, tax preparation, and financial consulting services. We’re passionate about helping local businesses thrive by simplifying their financial processes. Contact us today to learn more!