Getting & Staying Ahead Of The Curve When It Comes To Your Business’s Bookkeeping
In order to keep your business running like a well-oiled machine, one of the most important factors is keeping on top of your bookkeeping, remittances and business expenses. Not only can keeping an organized record help you to maintain a payment schedule and stay on budget, it can also help you to have everything in check when it comes time to file your personal and corporate income taxes. Let’s take a look at a few ways to keep on top of your bookkeeping to lower your tax season stresses.
Get Your Invoicing Down Pat
While everyone is specific to the way they organize information, the key is just that; organization! The most important factor in keeping on top of your bookkeeping is to find a way to organize that works for you personally. You should always be using a numbering, tracking and a filing system, whether digital or literal, to keep all of your records in order and in place. Not only does this mean everything will be ready to go when you need it, it can also help you keep track of your day to day business affairs, such as missed payments, payments owed, incoming cash etc.
Use Separate Business Accounts
In the fast-paced business world in which we live, it can be tempting to take the easy route and mix your personal accounts with your business accounts. This is a big no-no if you want to keep your business expense records clean and catalogued. Dividing your personal and business accounts can also prevent any confusion, especially when the risk of erroneous tax claims and their relative penalties could be on the line.
Keep Up To Date
Not only is it important to keep your bookkeeping organized, it is important to keep everything up to date. Much like you would with a cheque book, taking a small break each day to ensure all records are up to date can really help you out in the long run. Not only can it help you to stay organized, it can also give you a day-to-day briefing of your budgets, balances, revenues and payments while also keeping you on track when it comes to your business expenses.
As any accountant will tell you, whether big or small, you should be keeping a record of every expense. From gas receipts to office supplies be sure to keep an organized record of any money spent towards your business. Not only does this help you stay on budget, it can also help you have a clear and concise idea of what is a claimable business expense come tax time. Even if you keep all receipts and ask your accountant to review the receipts you have given them, to see if there is anything you might have been able to claim that you weren’t originally aware of, it’s worth it in the long run.
Follow-Up With Anything Missing
If you find you’re missing any payments, invoices or records, be sure to follow up on them immediately. So often we can add things to our “to-do” list and they end up lost in the shuffle of our busy days. Following up with a client who has missed a payment, or even looking into a record that has missing information can prevent you from roadblocks further on. While it is a good idea to have enough of a financial cushion to fill-in if you’re awaiting payment, make sure you keep record and knowledge of it, to avoid forgetfully missing out on obtaining a payment from a client due to oversight.
Connect With An Accountant
Keeping on top of bookkeeping, remittances and business expenses is rarely done without error or hiccups. This is why it is important to consult an accountant. Whether it be for tips on how to better organize your records or to review and crunch your numbers before you file your income taxes, an accountant can ensure everything is accounted for and properly filed, helping you to avoid any potential audits or additional money owed. Not to mention, an accountant can also help you discover business expenses you may not have known you could claim in addition to possible credits you could be taking advantage of.
Keeping your business’s books organized and up to date has so many benefits, and can really save you from headaches and hardships come tax time. If you have any questions about your income taxes, bookkeeping, payroll or would like to better understand your bookkeeping and business expenses in general, don’t hesitate to give us a call at 705-728-6469. At Cal Accounting, our team is dedicated to helping you better understand and plan for, your business’s financial success.