The time of year is upon us.
The time of year where every penny spent counts.
The time of year when everything you’ve bought begins to matter.
Wait, no, I’m not talking about Christmas. I’m talking about small business accounting. Because, of course, I am.
The year is almost over, and for many small businesses, that means a greater focus on accounting. It could mean increased business expenditures, but it most certainly means that a year’s worth of accounting is nearly in the books. And that means taxes.
Unfortunately, many businesses tend to start considering accounting this time of year (second only to considering accounting in Spring).
Instead of going furiously into December with accounting passions, why not start 2019 with a more level energy that keeps your accounting department roaring all year long?
I can’t tell you how many clients utilize our check writing services that come to us this time of year feeling overly stressed.
Here are some simple tricks of the trade. These small business accounting tips should help you feel a bit less stressed this time of year next year.
Stay On Track
If you do your best to stay consistent with accounting expenditures throughout the year, you’ll have much less to worry about in December.
Keeping consistent, accurate accounting records makes everything easier on your accounting department.
For example, you can more quickly determine how much you need to spend in December on small business needs, such as computers, smartphones, and printers.
Without solid record keeping, you’re left rummaging through unorganized receipts and taking a guess at where you stand.
About Those Receipts…
Yeah, you need to keep those receipts.
Remember your first business job? The company’s accountant constantly nagged you over keeping those business travel receipts?
Well, it was not just company policy, it was good advice to boot.
Being able to prove corporate expenditures goes a long, long way during tax season. Keep your receipts organized throughout the year and you’ll have little trouble at the end of the year.
Keep What’s Business, Business
If you are mixing too much business and personal, the IRS may get personal with you.
And that’s not a good thing. Not at all.
Make sure you have a business bank account and a business credit card. These two items will go along ways in separating your business and personal, which in turns sees to it that the IRS doesn’t get confused.
Invoice, Invoice, Invoice…
I see it all the time. Companies fail to create accurate invoices or even any invoices at all.
Invoices are essential to small business accounting.
By invoicing, you create accurate accounting records. Additionally, you encourage vendors to pay you.
Invoices track the status of payments. If you never got paid by a vendor, do you really want to add that to your earned income at the end of the year? This happens all the time.
Your Philanthropy Matters (More Than Just Morally)
All those wonderful donations you did throughout the year are tax exempt.
But often, small businesses forget to track them.
Make sure to keep a current ledger of all charitable donations.
Why have a mad and confusing accounting run at the end of the year? Just stay consistent throughout the fiscal year and you won’t have any stress at the end of it.
Keep receipts, track charitable donations, and make sure you properly invoice vendors. And then watch the accounting magic happen.
Waiting until the end of the year causes stress and confusion. It means your small business has no idea where it stands, which means it doesn’t know what it can spend on company needs.