It’s tax season. That means all of you are dealing with business finances. Some of you (like myself) are calm because you have everything under control. Others of you, are in a bit of a panic as you try to figure out what happened in your business financially these past twelve months.
My job is to help you avoid the latter. The best way to do that is to keep your business finances organized year-round. Here are some tips to help you do that.
Hire an accountant/bookkeeper.
I firmly believe that unless you have a background as an accountant, then you should probably outsource accounting. Quite frankly, as a business owner, you don’t have the time to be dealing with the minutiae of accounting all day. Nor do you have the time to keep up with tax changes.
It’s also easier to know that someone else is handling your taxes and they just tell you what to do. It’s also easier to hire someone to do the tedious task of reconciling bank statements. That way all you have to do is log into your invoicing software to find the information you need.
Note, this does not mean that you check out of the business finances. You still need to have conversations with your accountant, log into your accounting software and run reports.
Also, note that not all bookkeepers are also accountants. Some people just organize the books whereas an accountant helps with tax planning.
Another easy way to keep your business finances organized is to go digital. This means stop messing around with paper statements and bills. And for the love of all things good and holy – unless you cannot avoid it – stop accepting paper checks.
The ability to go digital gets you paid faster and keeps you better organized by syncing with your accounts. This is far more efficient than having a shoebox of receipts or piles of paper everywhere.
Sometimes our lack of organization with business finances is simply a result of not paying attention. I personally noticed that I was dropping the ball with my business finances when I was traveling frequently in 2017. Fortunately, I had the aforementioned support in place so not all was lost.
That being said, we do need to be more mindful of our business finances. We need to actually take a look at what’s going on. For example, I know 2018 is going to be a year of restructuring so I can reduce expenses. I already started this process and am seeing an increase in overall profit.
The only reason I even know this is because I pay attention. I pay attention to what I’m spending, I look for ROI and I pay attention to what can be improved.
Keeping your business finances organized all year isn’t hard, it just requires support and your attention. Make 2018 the last time you’re frazzled for tax season by implementing the organizational strategies you need.