With 2018 underway and our New Year's resolutions set, bookkeeping is always a top of business owners lists. Bookkeeping can be a business owner’s nightmare and is often a task that is often pushed to the side until tax time. Bookkeeping is the foundation for your business to maintain its overall success. With a good bookkeeping system in place, you are able to make well thought out business decisions which will hopefully increase earnings. Without a good, well-kept and maintained system, things tend to slip through the cracks and end up costing you money in the long run. We have found a way to simplify the bookkeeping process through automation which will save you time and money!
5 tips for 2018:
Go Paperless by using Cloud-Based Accounting
This is our specialty. We first adopted using cloud-based accounting back when we opened our doors in late 2012. Cloud accounting allows you to streamline the process by providing basic templates for your business like invoices, deposit slips, check printing and bank connecting. The bank connecting feature enables you to hook up or link your business bank accounts and credit cards to automatically download directly into your books. You can also integrate several hundreds of apps that are compatible with QuickBooks. I have my point of sale (POS) system integrated with QuickBooks. When a client pays an invoice of mine, the payment is recorded directly in my books as income and the 2 or 3 % credit card fee is mapped to the appropriate expense account. Automation is a beautiful thing.
Find a Good Advisor
We are QuickBooks Pro-Advisor's which entails completing a 4 part examination each year through QuickBooks. When it comes to bookkeeping, we consider ourselves one of the leaders of the cloud accounting industry. We are always exploring the latest trends and utilizing technology to improve efficiency. When you outsource the bookkeeping to us, we handle everything for you and are available 24/7/365 to answer any questions that you might have.
Keep Personal and Business Finances Separate
We see this more often than you would expect and it just ends up complicating things throughout the year. Use the business account for business expenses only and the personal account for personal items. Get a business credit card and checking account used exclusively for business only.
Plan for Major Expenses
Set aside money for major expenses like inventory, furniture, repairs, and other big ticket items. How is this possible without a set of books and knowing where you are at financially? We map it all out for you and it’s as simple as giving us a quick call to ask if you should lease or buy that new car.
Set Aside Money for Taxes
If you keep track of your financial records properly you can be prepared for year-end taxes. Setting aside a little bit of cash each month towards paying taxes will help you be better prepared once April rolls around. Taxes are generally paid quarterly through estimated tax payments federally and for the state(s) in which you perform work. If you have a tough time saving money for taxes, one of my recommendations would be to set up a savings account where you transfer money for taxes on a weekly basis. If you know you have to pay $4,000 per quarter, simply divide the $4,000 by 13 (weeks) to calculate your weekly taxes. When dealing with taxes, it’s important to be ahead of the game. An accurate, well maintained set of books is the start!
Hire CBAuthentix Business Services Inc.
HA HA just kidding :)
Well, it might save you a couple of bucks to Uncle Sam. Just sayin'
Back to a serious note, please do not hesitate to contact us to see how we can improve your current bookkeeping system to let you get back to doing what you do best in running your business. We are available for complimentary consultations until February 1st for evaluations and recommendations.
Best wishes to you for a healthy and successful 2018.
Chris Boyer, EA