You own a small business, and everything is moving forward just as you outlined in your original business plan. You couldn’t be happier with the progress.
Then, tax time arrives and you realize that bookkeeping is not one of your many strengths. These 5 bookkeeping tips to implement this year will allow you to spend more time and energy on growing your business
1. Have a storage box
Keep all your records in one place for easy access. These include bank statements, credit card statements, paid bills, and even your prior year’s tax return. At the end of the year, everything is right where you need it.
2. Keep personal and business accounts separate
This is imperative for good record keeping. Business owners need to have bank accounts and credit cards independent from their personal accounts. This separation will ensure there are no conflicts and make tax time much simpler.
3. Save all receipts
It is always a good idea to track all of your expenses. By saving every receipt, you may discover items that could be written off as a business expense and save you money. Using a program like Receipt Bank can help you organize your receipts and make saving them a breeze.
4. Review your statements
Bank statements and credit card statements require a thorough review. The owner of the accounts must always review monthly statements. It will help the accuracy of listed items and cut down on potential fraud.
5. Enlist the services of a bookkeeping and accounting service
Outsourcing is a cost-effective way to safeguard your business from errors. And it frees up a valuable resource – your time. If you’re having a hard time fitting it all in, consider outsourcing your bookkeeping duties.