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Posted by Felecia Dixson, EA, ATA

Five Bookkeeping Secrets for Small Businesses

Five Bookkeeping Secrets for Small Businesses

One of the challenges small business owners face is maintaining their financial books. Bookkeeping demands a great level of discipline which most small business owners fail to adhere to and consequently result in losses and/or tax issues. If you own a small business and feel accounting or numbers is not your everyday cup of tea, consider seeking professional help from ASU-Account  Services Unlimited LLC in Rolla, MO. 

One common mistake small scale business owners do is to keep records in their heads. While it's understandable that some of us may have sharp memories, keeping track of a 100 suppliers to pay, which customers have been outstanding in the last month, which invoices are due, etc. It's only natural that you will lose this data as new transaction roll in. You may argue that keeping records this way saves you on data keeping software, system crash and may not need to spend hours tweaking your budget. Well, the fact is, this is a huge mistake and can land you into trouble when the tax professionals caught up with you. Solution? Get professional help from ASU-Account Services Unlimited  LLC in Rolla, MO. Not only will you achieve peace of mind regarding your bookkeeping needs, but you are sure your tax preparer needs are as well met.

When you have a bookkeeping professional handling your books of records, you are not only safe from unpleasant surprises, missing goals, forgetting important paperwork, etc. but also from facing lawsuits because of mismatch in invoices, tax evasion complaints, etc. Proper bookkeeping ensures you track your income sources, maintain a clean payroll, no late payment of bills, avoid interest payments and stay away from trouble with IRS. ASU-Account  Services Unlimited LLC in Rolla, MO are you trusted partners for your bookkeeping needs and will also help you find a tax professional.

To realize real success in your small business, you need to take action. ASU-Account  Services Unlimited LLC in Rolla, MO have compiled a list of the most important tips for small business bookkeeping. Have a look.

  • Have  a Plan for Major Expenses

Honesty is key for the success of any business. You have to be honest about your expenses, especially those major expenses coming up in the next few years. If you are panning any facility upgrades or even overhaul of equipment, have plans in order.

One thing most business owners fail to undertake and consequently cost business, is failing to have a forecast of major upgrades in the enterprise as well as seasons of high staffing costs. Putting these in order will help you manage your finances well and avoid withdrawing chunks of money from the business during good months making you fall short of funds during the months of slow business.

  • Track  Your Expenses

It's common knowledge expenses can be challenging to keep track of, and this could mean a loss of tax benefits regarding tax write-offs.

ASU-Account Services Unlimited LLC in Rolla, MO have established that employing the use of business credit cards can be handy to keep and track business expenses provided you are up to date with payments made on behalf of your company. The latest trend involving most bookkeeping providers is the classification of bills into expense types which makes work easier for the business owner.

It’s also important to be prepared all round as you never know when those tax audits are conducted. Make notes on your clients calendar every time you meet clients over lunches, events or coffee. This will go a long way in substantiating your expenses that are included in your tax records and are thus available during tax audits.

Other costs such car mileages should also be tracked and associated costs recorded. Use Google maps to log your distances covered and possible associated costs when you head out to meet clients or business meetings.

  • Record  Deposits Correctly

ASU-Account Services Unlimited LLC in Rolla, MO recommends that irrespective of the means of record keeping, always keep track of credits to your business bank account. You may use a financial software like Sage or simple tools such as a pocket notebook or an Excel spreadsheet.

Throughout the year, you are likely to make several deposits to your account. These deposits could range cash infusions from personal savings, loans to sales revenues. Not accounting for each any of these transactions could easily be confused as income and thus subjected to tax. Having an accountant to help out with tracking these payments and keeping precise records could go a long way in reducing your taxation suites.

  • Set  Aside Money for Taxes

You do not want to get into trouble if you don’t have a tax preparer. It’s pretty obvious you are going to pay taxes and thus you should have a schedule in place. ASU-Account Services Unlimited  LLC in Rolla, MO advises that you systematically set aside money that should go to taxes every time a taxed transaction is made. This way you will peace of mind from penalties and interests that IRS may impose on you due to unpaid taxes.

Besides, you won’t feel much of a pinch if you set aside money each month from each taxable transaction you do within the month.

  • Keep  an Eye on Your Invoices

You have to put in place an invoicing system that's efficient otherwise your cash flow may be interrupted whenever there are late payments and unpaid bills. Assigning someone to deal with your billing and late or unpaid bills is a great strategy. A process to reclaim unpaid bills would probably include issuing a second invoice, at times levying penalties and making direct phone calls. Develop a compensation plan for late payments, say, 30, 60 or even 90 days late.

Late payments are interest-free loans that does no good to your businesses cash flow and has to be dealt with properly.

Consider ASU-Account Services Unlimited LLC in Rolla, MO  for All Your Bookkeeping Needs

Bookkeeping is an essential and sensitive aspect of any business and having professionals handle your records gives you a great piece of mind and ensures proper flow of business. If you aren’t sure of your ability to handle numbers, seek the help of professionals. ASU-Account  Services Unlimited LLC in Rolla, MO are here to help you at all times. Get in touch today!

Felecia Dixson, EA, ATA
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