If you are a business owner of a small business, a start-up company, or a big corporation, Book Keeping is an essential business task. It may seem boring and even useless because it doesn’t generate you any profit. But the reality is that if you don’t keep track of your accounts, the tax department of your government will come after your records by the end of the year, and you might lose money if you don’t do it rightly.
Good if you have a competent accountant by your office, but if you don’t have any, here are some useful small business accounting services tips you can use for your business.
1. Record Deposits Correctly
Recording deposits correctly is a must. Otherwise, you will lose money by paying the tax that wasn’t an income money. To elaborate, there are times when you deposit money in the bank without writing its tracks; this money can be from loans, personal money that is infused with the business, or revenue from sales. The trouble here is that if your bookkeeper didn’t record your deposits correctly, some of the money that isn’t income would be included as income in one year, giving you a higher price to pay for the taxes.
What you can do to avoid this problem is to record your financial activities consistently and correctly, by a notebook that you can use, or utilize Excel spreadsheets.
2. Include Tax Payment in your Budget
Setting aside money for the sole purpose of paying your taxes is the right thing to do. You have to have a systematic approach to allocating money for taxes by the end of the year and record on your calendar tax deadlines.
Some companies take a down cycle because they have used their money for other things that can wait instead of using it to pay taxes. Note that not paying your taxes on time will result in penalties and interest that will harm your finance in the long run.
3. Plan for big moves/expenses
Aside from taking care of taxes, proper book keeping can also help you expand your business. When you are planning a major upgrade in your equipment or maintenance, you need a lot of money to finance it. And a lot of money can be acquired by a careful and systematic saving that can be done through bookkeeping.
To do this, plan a year ahead, and slowly save money that you can spare from revenues. Systematically saving a lot of money can also be a safety net for your company, when down seasons come along as they do, this saved money can get you through the storm and save your company.
These ladies and gentlemen, are just some of the more basic bookkeeping practices that you can employ. Some of the older businessmen are already familiar with the ins and outs of bookkeeping, and with a certain amount of practice and experience, you can be as good as them. However, if you are new, it is best to hire someone that knows this stuff professionally, employ them to save money in the long run.