How to NOT Have to Scramble Next Tax Season
If you are like most small business owners, you waited until the last minute to start pulling everything together for your taxes. Digging for receipts, searching around to find all your tax forms, it’s a headache. Not having tax ready financials for your business when you need them can cause other headaches as well like not getting approved for that business loan you need. Instead of scrambling at the last minute to do your taxes, be proactive by planning for next tax season starting now. Here’s how to do it. Ensure your financial records are kept in financial software like QBO
Keeping your business information in accounting software like Quickbooks makes ensuring you have tax ready financial statements when you need them, easy. It’s important your financial data is regularly updated. Having an expert small business bookkeeper on your team can help ensure all your bookkeeping is kept up to date and accurate.
Ensure everything is recorded into your financial software, all expenses, all income, all large purchases
QuickBooks Online is web-based software that makes data organization convenient. This online software is advanced to the point that it even provides automatic data backups to ensure there is a digital copy of your information available at all times. Everything from receipts to invoices, expense information and the figures for your accounting/bookkeeping will be conveniently stored in one area.
So don’t bother with tangible paper copies of paperwork pertaining to your business and taxes. Opt for QuickBooks Online along with the help of our small business bookkeeping specialist and you’ll find accessing all the necessary figures for your taxes is surprisingly easy.
Ensure your accounts are all reconciled monthly
Your business’s bank account balance might not be an accurate indicator of the amount of cash available. If transactions have not settled, the figure in the account balance will be inaccurate. Be sure to reconcile your business’s accounts at least once per month to ensure balances reflect reality. Otherwise, you might end up overdrawing one or several accounts and face overdraft fees.
The aim of the reconciliation process is to pinpoint differences between bank statements and accounting records for the business. If there are discrepancies, seize the opportunity to analyze the accounting records for an explanation and adjustment. Monthly bank reconciliation also promotes a more comprehensive understanding of cash flow along with the company’s actual cash position.
Ensure you are reviewing your financial statements for your business monthly
Take a close look at your company’s monthly financial statements so you stay on top of how your small business is performing. Reviewing your financial statements at least once per month and you’ll be alerted to potential issues before they spiral out of control and become major problems that make it that much more difficult to conduct business.
The Tax Experts are at Your Service
If you have not yet filed your taxes, don’t panic. Our tax professionals are here to help you file your taxes the right way on the first try. We help business owners and everyday people file taxes. Contact Bookkeeping & CFO Solutions 5280 today to find out more about how we can help. You can reach us by phone at 720-608-6240 or by email at firstname.lastname@example.org.