Good bookkeeping and accounting habits make all the difference.
The end of the year is here, and many small business owners are anxiously looking toward the New Year. If you’re an entrepreneur or small business owner, you’re probably doing the same. You may be asking yourself these questions:
- What will next year’s economy be like?
- Will business be better or worse than this year?
- How much will I owe in taxes come April?
- What’s the best way to stay on top of my bookkeeping so pulling information together isn’t such a burden?
Creating a solid foundation on which to build your business is critical for long-term success. It’s not as flashy or fun as meeting people and making sales. Smart business owners understand the importance of having back-office affairs in order, but it can be a challenge to keep records organized and keep the business moving at the same time.
Tips for Future Success
If you struggle with keeping the back-end of the business organized, look at these tips from Adams Accounting Solutions. They’ll get you started on the right foot and make tax time and year-end reporting next year much less stressful.
#1. Implement a Bookkeeping System
A sound bookkeeping system is key to success for any business. You need a place to quickly and easily record expenses and income. Many entrepreneurs start this on a spreadsheet. As the business grows, however, the accounting system needs to grow as well, and many businesses outgrow spreadsheets within the first few years.
There are many free and low-cost bookkeeping systems on the market today, and most of them are quite user-friendly. QuickBooks Online is a popular system robust enough to handle a growing company’s needs but still easy to use. Another option is hiring a bookkeeper to organize and manage everything for you. Invest in a good system now so it can be implemented on January 1.
#2. Separate Work and Play
Keep personal and business records, income, and expenses separate. This creates a cleaner paper trail at tax time and makes year-end reconciliation and reporting easier. You need to know how much revenue the business brings in and how much money is going out. It’s tough to do that if everything is jumbled together.
#3. Reconcile Consistently
Hopefully, you balance your checkbook every month, so you know how much money you have in your account. You need to do the same thing with business finances. Reconcile income and expenses regularly, ensuring all receipts are recorded correctly, mileage is tracked consistently, and cash flow is being monitored. This helps prevent unpleasant surprises down the road.
Get Set Up Now for Future Success
We know it’s hard to stay organized and keep up with paperwork while running a business. Adams Accounting Solutions specializes in small business financial planning and tax preparation services. We’re licensed CPAs and are also QuickBooks-certified. We love working with clients to create solutions that are a perfect fit for their business needs.
Give us a call at 913-888-9100 or stop by our office in Overland Park. We’ll help you put a system in place that allows you to focus on driving the business next year instead of worrying about the paperwork!
