With all the things you’ll need to do in the new year, it can be easy to overlook some of the accounting tasks that go along with owning and running a business. To stay on top of them, resolve right now to keep up this year by getting into a routine and making time for mission-critical accounting tasks.
Here’s a list of small but vital activities you can start now to stay organized this year and make your life easier. Keeping up with all this throughout the year will make next year’s tax preparation much quicker and easier — not to mention providing insight into where your business is going!
Set Up a System
Now is the time to establish a system for tracking all your business-related transactions. It’s critical that you choose a system that makes sense to you and is easy to use. If you’re constantly frustrated every time you try to make an entry, you’ll give up before mid-year.
Accounting software can help you get organized and stay organized throughout the year. Adams Accounting Solutions recommends QuickBooks, but there are several other good products out there too. Give us a call if you have questions about accounting software or need help choosing the right one for your business needs.
Review Financial Statements Regularly
Another good way to ensure there are no surprises at tax time is to review your financial statements often. We recommend going over them at least quarterly, but business owners often feel better doing it monthly. Reviewing financial statements regularly helps you track revenue and profitability and gives you a view into whether you’re meeting your goals or not. Knowing where you stand at all times helps you make better business decisions along the way too.
Keep Track of Receipts
It’s critical that you keep track of receipts for all business expenses throughout the year. These are often needed at tax time. Items like business travel (hotels, airfare, and rental cars), meals, and mileage are all tax-deductible business expenses. You’ll need receipts to back up your business-related deductions at tax time, so file them as they come in. Letting them pile up on a desk or in your purse or wallet is asking for trouble!
Hire Someone to Help
If administrative tasks aren’t your forte, you might consider hiring people to help. A good bookkeeper can help you enter receipts into your accounting software, track payroll, and generate financial statements for review.
A licensed CPA is good to have on the team too. They can advise you throughout the year on which expenses are deductible and which aren’t. They’ll also offer advice when making business decisions to ensure you don’t do anything that may hurt you at tax time.
The Key to Running a Successful Business
Accounting practices are a key component of financial management and essential to creating a successful business. A sound accounting system helps you keep track of your expenses and revenues, plan for future growth, manage cash flow, prepare tax returns, and much more.
At Adams Accounting Solutions, we know that keeping your financial records organized is a lot of work, but it’s also an essential part of running a successful business. It may be overwhelming at first, but once you get in the habit of organizing receipts, tracking expenses, and reviewing financials regularly, it’ll get easier. You may even find you enjoy it because it gives you more insight into where your money goes throughout the year.
If you need help getting organized for the New Year, give Adams Accounting Solutions a call. We’re happy to help you set up the processes and systems you need to keep up with accounting tasks this year!
