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 although you are tremendous at your craft, your strength is not in bookkeeping. So you spend several frustrating days getting all your documents and receipts in order, vowing that next year you will do things differently.
Implementing a few simple bookkeeping tips will allow you to spend more time and energy on growing your business and less on agonizing at tax time.
- Have a storage box. Keep all your records in one place, for easy access: include bank statements, credit card statements, paid bills, even your prior year’s tax return. At the end of the year, everything is right where you need it.
- 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.
- Save all receipts. It is always a good idea to track all your expenses. By saving every receipt, you may discover items that could be written off as a business expense and save you money.
- Review your statements. Bank statements and credit card statements require thorough review. The owner of the accounts must always review monthly statements, being certain everything listed was in fact authorized and that the amounts are accurate. Reviewing these regularly will control losses brought on by unauthorized use of the accounts.
- 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.
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