As a small business owner, you have plenty on your mind as you take on most (if not all) key roles within your organization. When it comes to bookkeeping, you may end up cobbling together a makeshift bookkeeping system or try and keep it all in your head. That may be okay when you are really small, but as your business grows, you will quickly realize just how important it is to have a dependable bookkeeping system in place.
Good bookkeeping is especially important when tax time rolls around. You want your numbers to be accurate so you can get the most out of your deductions.
Below are some helpful tips you can implement as a small business owner to help maintain a more effective bookkeeping system.
1. Track Your Expenses
This is obvious and important. Keep track of all business expenses so you will have more accurate finances to report in your taxes.
2. Track Your Income
The two most vital elements of your bookkeeping are your expenses and income. Carefully track all revenue from every source you have (checks, credit card payments, PayPal, Venmo cash, etc.).
3. Get a Business Credit/Debit Card
Along with having a bank account solely for business expenses and deposits, use a specified credit or debit card for all your business expenses. This is the easiest way to track them in one place.
4. Pay Your Bills
Make sure any operational bills or invoices from vendors are paid on time. Have a system in place for yourself or an employee designated to handle this important duty. Late bills or unpaid invoices will ultimately ruin your cash flow.
5. Set Aside Money for Taxes
Make it a habit to set aside an appropriate portion of all income and payroll for taxes. Pay your estimated quarterly taxes on time to avoid problems and late fees with the IRS.
6. Outsource Your Bookkeeping
If you don’t have the means to pay a full-time bookkeeper or accountant or want to use that money for other business needs, consider outsourcing your bookkeeping to Ferguson, Timar & Company. We can handle all your bookkeeping duties at a much lower cost than hiring a bookkeeper. Plus, everything will be taken care of accurately and efficiently.
To learn more about outsourced bookkeeping services and small business tax preparation from Ferguson, Timar & Company, contact us today.