1) Open a Tax savings account!
It is very important to have a savings account specifically for your tax savings and nothing else. The purpose of the tax savings accounts is to separate your tax savings from your business expenses, so once it comes time to pay taxes you’re all set!
2) Keep up to date on recent law changes and code accordingly.
There are constantly new law changes, so it is important to follow your local state and city department of revenue to stay well informed of any changes or updates. You can sign up for notifications of any changes to be sent directly to your email.
3) Reconcile every month!
After categorizing income and expenses, you want to reconcile all of your accounts at the end of each month. Reconciling helps you realize if you accidentally duplicated transactions or forgot to include transactions throughout the month.
4) Stay on top of Accounts Receivables!
It is important to keep track of your customers who aren’t paying their invoices on time. Are you sending reminders or statements if they haven’t paid? It’s so important to keep up with unpaid invoices because it helps your monthly cash flow. Having a ton of overdue invoices can be detrimental to your business. As business owners, this can be hard to stay on top of, so outsourcing your Accounts Receivables to a bookkeeping professional can help you stay on top well before it gets to overdue invoices.
5) Stay on top of Accounts Payables!
It is just as important to stay on top of Accounts Receivable as it is to stay on top of Accounts Payable and NOT pay your bills late. This causes late fees and can add up over time. Put a reminder in your phone or your calendar and remind yourself to pay your bills on time. QuickBooks Online has an awesome feature where you can set up recurring bill payments.
6) Keep up with receipts!
You can now download an app on your phone and upload pictures of your receipts, and then match them to the expense within a matter of minutes. It’s so easy! You can also make a folder named “Receipts” in your email for any receipts you receive through email or use a third party app like Hubdoc!
7) View your financial statements for the month!
It is always good to look at the Income Statement (Profit & Loss), Balance Sheet and Statement of Cash Flow on a monthly basis. The Income Statement will tell you exactly how much money you need to set aside for taxes.
If you have been considering hiring a bookkeeper, let Moose Creek Bookkeeping show you how our custom, outsourced bookkeeping services offer a better way. Schedule a free consultation here or check us out on Facebook!