Bookkeeping can be the necessary evil when owning your own business. But in order to prevent an audit be sure to give the IRS what they need. Here are some tips to get you businesses accounting in order.
Separate Business and Personal Accounts
Having a dedicated business account saves you precious man-hours when it’s time to tally up deductible expenses.
Track Every Expense
Track your cash flow or you’re bound to miss out on tax write-offs. Also when possible use a credit card for easier tracking that carrying around a bunch on receipts.
Things can lead to paying unnecessary income taxes. Be sure to record things like loans, revenue from sales and other cash infusions.
When it pays to pay
Hiring a bookkeeper or Enso Accounting for just a few hours a week or month, can make a big difference. Your record will be up-to-date as well as orderly.
Keep an Eye on Labor Costs
Paying employees, including yourself may be the largest expense. Take note to be sure you are not over or under paying.
Major Expenses Will Happen
Computer upgrades, equipment replacement and tax deadlines will always happen and shouldn’t be a surprise.
Follow Up and Be Sure You’re Paid
Just by sending an invoice doesn’t mean the job is complete and you will receive the check. Keep records and accept online payments will pay off in the end.
Lodestar Advisors is an independent firm positioned to respond to clients’ exacting expectations with clarity, transparency, and professional support. Lodestar Advisors financial data can simplify many business decisions with expert forecasting and analysis assistance. We’re here to help your business. Call us today!