It’s time to prepare for the upcoming tax season. Many small to medium businesses will go a whole year without doing their bookkeeping.
What is the risk of not doing your bookkeeping regularly?
- Higher costs in accounting services – It’s time consuming and complex to figure out a client’s system, understand their processes and align their accounting systems to it. Once you do, then you have to either clean up the system or establish a new system.
- Over or under paying estimated taxes – How do you now exactly how much to send to Federal government for estimated payments without knowing if you made a net income for that quarter? Many selling businesses base it off of their sales reports, but you could be over paying because not all expenses are recorded in your point of sale systems. Or you maybe under paying but you wouldn’t know without pulling the proper report.
- Unsure of where your business stands financially – I think I would be paranoid if I didn’t know how much is my busines grossing and netting monthly. I need to make sales goals and financial decisions based on my monthly financial reports. I would like to know if I can take a draw or run payroll (I’m a S-corp) and still have money retained for the next month.
Knowing where my business stands financially has actually kept me self funding and in good standing even before the pandemic. I was able to financial decisions including accessing merchant fees, reducing expenses, setting budgets, and establishing sales goals. I maybe a small business , but I have a mind frame of a Fortune 500 CEO and you should too ! When you have downtime in your business, work on the back office / admin stuff, review your business model, assess your business financial health, and make sure your systems are working properly.
You don’t want this task sneaking up on you and it becomes a big task in the end. But just in case it does, we are here to help ! My firm helps get your accounting system up and running and updated. We can help you get ready for tax season no matter where in the world you are ! We have clients everywhere ! Need assistance? Contact us below !