Already felt like you are nearing the end of the line? Well, you probably did, since the tax season just left you dazed and stressed. Instead of pulling your hair out at the end of the next tax season, grab the next 12 months to bond over your finances so the next end of the tax season would not be as painful as it is this year.
Here are some sure-fire ways to make it happen:
Organize Your Accounting Records Regularly
When you are running a small business, you will almost have no time to sit with numbers after the end of the day. Receipts, bank statements, Excel spreadsheets, and accounting notebooks litter your workplace and you absolutely have no idea how to start. You also wouldn’t bother to attend to them when there are other, more urgent tasks that you need to do for your business. That should completely change this year. Make it a daily, weekly, or monthly habit to keep track and organize your records. This way, you can avoid having to catch up one month before next year’s deadline and fail hard.
Trace Your Cash Flow
Ever wondered where your cash comes from? You would be surprised, but most business owners aren’t exactly sure and familiar with where their money comes from. You need to know the origin of your cash flow so you will have an idea how to improve it and keep it going. Bookkeepers will aid you and explain the flow of your money, where it came from and where it goes so aside from the added bonus of seeing opportunities for profit increase, you can also keep good track of your income records and income tax.
Take Advantage of Accounting Software
Manual record keeping is a pain in the neck. Good thing, there are various accounting software that can help you organize your taxes on the cloud. Digital, secured, and can be accessed wherever you go. By using accounting software, you can reduce errors; you’ll get a better overview, and might even be motivated to regularly update your records. It’s also easy to learn, and would be a great tool you can share with a bookkeeper for easy data sharing and updating.
Evaluate Your Returns
Keep up with the pattern of your returns every year so it would be easier to find out if you are missing out a refund or if it has increased or decreased. If you happen to notice any variations on your tax returns, then you will be able to shell out those business ideas that will surely improve the way your business is going.
Reconcile With Your Monthly Bank Records
Your bank is always punctual in sending out bank statements every month, and in turn you should also be punctual in reviewing them. Sit with your bank statements together with your bookkeeper the moment your statements arrive so you would not leave room for missing numbers in your books if you try to do it later on.
File Your Taxes Earlier
Filing your taxes earlier can pay off in many ways. By doing so, you’re giving yourself a chance to do it on a relaxed, and not rushed, manner and it will help you spot errors that you might miss when in a hurry. Additionally, it gives you enough time to make appropriate changes. Filing taxes earlier can also help you avoid identity thieves who are more likely to target those who are bombarded with paperwork and stress. Oh, did we also mention you can get your refunds earlier by doing this same tip?
Hire the Professionals
Working with numbers is real tough, especially if you do not put enough time and mind on it. Having a team of bookkeepers not only helps you get more time for yourself and your business, they also have a better understanding of the tax system and have better eyes for spotting errors, saving you tons of money and stress. Contact us today to make the next tax year, and every year, a walk in the park.
