How to Catch up on your Bookkeeping
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Small business owners find it difficult to have time to run their businesses and keep up with bookkeeping. As a result, they find themselves cramming the work in to get it done before tax time.
This can be stressful and challenging, but I’m here to show you five ways to catch up on your bookkeeping.
1. Organize Accounts Receivable
Gather all receipts from accounts that owe you or have already paid you. You’ll need them when accounting for your income. Also, be sure to include any payments you’re owed and didn’t receive, as you may write them off as a bad expense.
2. Organize Accounts Payable
Just as important as your receipts for money you earned are receipts for money you paid out. Organize all payments made to vendors, lenders, and other service providers. Then, you may be able to write some of the expenses off on your taxes.
3. Reconcile your Bank Statements
Your bank statements and personal records may not match. Therefore, reviewing each line is important to determine where the error occurred. After discovering the error, make the appropriate corrections, so your records are accurate for tax time.
4. Keep Personal and Business Records Separate
If you mix your personal and business records, now is the time to separate them. Without separation, your personal assets could be at risk for business liabilities, which isn’t what you intended. If you run an LLC, this is essential, but any business entity should keep personal and business records separate.
5. Outsource your Bookkeeping Needs
Bookkeeping is complex, and if it’s not your area of expertise, it can take away from the time you have to run your business. You might even make bad business decisions if the bookkeeping isn’t handled correctly.
Rather than risking your bookkeeping and business, consider outsourcing it to a reputable bookkeeping firm that can keep you on track, help you make suitable business decisions, and help your business grow!
Never overlook the importance of bookkeeping for your business. If you DIY it, make time weekly to get it done, and play catch-up as quickly as possible if you don’t. However, if it’s too much and you want the pressure taken off your shoulders, contact me today to see how I can help!