Bright Ideas - June 2018
Updated: Oct 28, 2020
Let's clean up those books!
1. Do it now, rather than tax time:
Too many businesses push off their clean-up work until their tax deadline approaches. By doing a mid-year cleanup now, you can get on track to send your accountant a clean set of books at year end and avoid those last minute corrections.
- Make a list for your bookkeeper of postings and items to review
- Consider ways to automate your activity
- Review your billing and collections for efficiency and accuracy
- Review your payments and look for ways to save money
- Have your bookkeeper review your outstanding checks for voids
This bookkeeper review will help set up your accountant to focus on their role as tax planner and preparer.
2. Take a look at what is working, and where to improve:
You're in business to achieve success! Partner with your bookkeeper to setup a monthly or quarterly review of your cash flow. Drill deep into your records to set up parameters for your sales goals. Perhaps a specific sales component outperformed others? Are you properly budgeting for your expenses? Was your COGS appropriately proportionate to your revenue?
These mid-year strategies will help you get on task for the remainder of the year and get closer to your goals.
3. Make informed decisions:
Once you have an understanding of your financial position, you can align your business structure with your financial position.
- Create or update your business budget and reports
- Setup monthly or quarterly reports, rather than waiting for year-end
- Free up time to grow your business, knowing your books are accurate
BrightBooks is more than ready to partner with you to clean up your books. We are excited to help you organize your business or personal finances and allow you the freedom to focus on your goals!