Spring is in the air!

Welcome Spring!

Don’t forget your bookkeeping as part of your spring cleaning!  Need some help?  Schedule a free discovery call – I’ve got your back! 

The Importance of Bookkeeping for Small Businesses

Bookkeeping is a critical aspect of running a small business. It involves keeping track of your financial records, such as income, expenses, and taxes. While bookkeeping may seem like a tedious task, it is essential for making informed business decisions and ensuring financial stability. Here are some of the key benefits of bookkeeping:

  1. Financial planning: By keeping accurate records of your income and expenses, you can better plan for future financial needs. For example, you can use your financial records to create a budget, set financial goals, and determine whether you need to take out a loan or seek investors.
  2. Tax compliance: Bookkeeping is crucial for complying with tax regulations and avoiding penalties. By keeping detailed records of your expenses and income, you can easily calculate your tax liability and file your tax returns on time.
  3. Improved cash flow management: Bookkeeping allows you to monitor your cash flow, which is crucial for managing your business’s finances. By tracking your income and expenses, you can identify areas where you can reduce costs or increase revenue, and ensure that you have enough cash on hand to cover your expenses.
  4. Business analysis: By analyzing your financial records, you can gain insights into your business’s performance and identify areas where you can improve. For example, you can track your sales by product or service, monitor your expenses by category, and compare your revenue and expenses over time.
  5. Better decision-making: Bookkeeping provides the information you need to make informed decisions about your business. By understanding your financial position and performance, you can make strategic decisions about pricing, marketing, and expansion.

In summary, bookkeeping is an essential part of running a small business. By keeping accurate records of your financial transactions, you can improve your financial planning, comply with tax regulations, manage your cash flow, analyze your business’s performance, and make informed decisions about your business. While bookkeeping may seem like a daunting task, there are many tools and resources available to help you streamline the process, such as accounting software and online bookkeeping services. By prioritizing bookkeeping and staying on top of your finances, you can ensure the long-term success of your small business.


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Two Big Mistakes

Did you know?


Here are two common mistakes bookkeepers see many business owners making: 

  1.  Mixing business and personal finances.

This is commonly referred to as “comingling”.  The most obvious problem with mixing business finances with personal finances is unorganized data, which makes it difficult to quickly see how your business is doing financially.  Messy books also take longer to sort out during tax season, which ends up costing you time to locate and organize records as well as could potentially cost you more money to have your taxes prepared.  Additionally, you could potentially miss out on tax deductions that your business may be entitled to.  It can also cause legal problems if your company were to be sued or if you wanted to sell your company later on.   It also increases your risk if your business gets audited by the IRS.   It is best practice to open business accounts and only use those accounts for business transactions.  Your tax preparer will thank you!

 2.  Not keeping good financial records.

There are many reasons why it is essential to keep good financial records for your business.  You will be able to monitor the financial health of your business with accurate financial reports.  You can keep track of deductible expenses to decrease your tax liability.  When tax time rolls around, gathering information to prepare your tax return or send everything to your tax preparer will be a breeze!  No more giving up evenings and weekends in January trying to locate and organize all of your financial information! 

If this describes you, schedule a free consultation to see how I can help you rock your books and wow your tax preparer!

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What Exactly Does a Bookkeeper Do Anyway?

Did you know?

Every business, no matter how big or small, is required by the IRS to keep accurate financial records. 

Bookkeepers record your daily transactions, freeing up your time so you can focus on building your business and making the dough!  Some of the tasks a bookkeeper can do for you include:

  • Set up your books in an accounting software
  • Clean up/catch up your existing books
  • Enter and categorize receipts, invoices, and other financial transactions 
  • Reconcile bank accounts
  • Provide payroll assistance
  • Provide detailed financial reports
  • Spot areas of financial concern
  • Become your trusted advisor, and even a friend!

Many business owners hate this task… fortunately, bookkeepers love this stuff and are more than happy to assume the bookkeeping, freeing up the business owner to get back to doing what they do love!

If this describes you, schedule a free consultation to see how I can help you get back to doing you!

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