As a small business owner, it can be tough to prepare concise and accurate books while managing a business. Although, to be compliant and avoid penalties you must begin by preparing accurate books. Here are 4 tasks that will help you get your books where they need to be.
Separate your personal and business bank accounts
From a bookkeeper’s perspective, it is very important to separate your business funds from your personal funds. The last thing you want to do is make the mistake of tracking or allocating a personal expense as a business expense. If you are registered as an LLC or corporation, you are required to have a separate bank account for business finances. If the IRS audits your business and sees that your bank statements show both personal and business transactions, they may “disallow everything.” Separating your accounts makes it easier to leave a clear spending trail and avoid any trouble with the IRS.
Regular and Consistent Bookkeeping Maintenance
Regular maintenance is important. Bookkeeping should be done frequently to avoid mistakes and becoming overwhelmed with all your duties as a business owner. At minimum, bookkeeping should be done once a week. Having up to date books gives you the power to make financially smart, data driven business decisions. If your books are updated regularly, come tax time, you won’t be scrambling to prep.
Consult a bookkeeper
As a business owner, at the end of the day, your main goal is to build your business. To be able to put more of your time toward managing your business, you may want to outsource a bookkeeper. A bookkeeper can help you move beyond basic bookkeeping and allow you to get back to what you do best. If you find yourself spending too much time sorting through your finances, it may be time to consider this change. A bookkeeper will ensure you have the most up to date information, spot any mistakes, prepare accurate financial statements, and in the long run save yourself time and your business money. A bookkeeper will also be able to evaluate your business’s financial health and assist you with making smarter financial decisions.
Use Accounting Software
Accounting software is the best way to organize and track your financial data. BrightBooks recommends QuickBooks Online to organize financial data, prepare taxes, run payroll, manage invoicing, and more.
Contact Us
For questions or assistance with bookkeeping, contact the BrightBooks team at info@brightbooksusa.com or fill out our contact form.