As a small business owner, you usually end up wearing a lot of hats. One day you might be the CFO and another day you might be an HR recruiter. While this can be stressful and time consuming, it’s also important to keep up with your bookkeeping tasks properly and accurately as the year goes by. Let’s dive into some bookkeeping tips for those small business owners who need a hand:
Record all business expenses
With tax codes always changing every year, it’s important to have a record of all of your business expenses so you know what you can deduct when tax season approaches. A simple way to make this easier is to always use a dedicated business credit card for all of these purchases. This will ensure you can easily go back and look at all of your purchases without having to dig through several credit card statements or other paperwork. What counts as a business expense? Anything that is necessary to keeping your business in operation. This could be office computers, company vehicles, or even maintenance repairs.
Have financial checkups
This might sound like a no-brainer but it is one thing small business owners often overlook. It’s easy to fall behind on your bookkeeping for a couple of months and before you know it, you’re spending days putting together old paperwork that you don’t remember much about anymore.
The best way to avoid this is to have weekly or even monthly check-ins with you and your financial team. This is the perfect time to check over any business expenses, tax information, or employee timesheets and make sure everything is up to date and correct. Having these financial checkups is also a great way to see how your company is doing financially – are you up this quarter? Lower than usual? This is the perfect time to assess your overall financial health as well.
Hire a small business virtual CFO
Every business needs a Chief Financial Officer, but have you ever considered hiring a small business virtual CFO to help you and your business when you need them? Not only is this a great way to save money, but can help your small business complete finance infrastructure management, provide business advisory services alongside strategic planning, work on tax planning/compliance, track expenses, and more. The peace of mind that comes with having a Chief Financial Officer is something you and your leadership team will be thankful for when tax season rolls around every year.
Pay attention to tax deadlines
Tax deadlines tend to change and sneak up on you as you prepare to submit all of your necessary paperwork. For example: this year the tax deadline got pushed to mid May due to an overwhelming backlog from the COVID-19 pandemic. The best way to stay on the good side of the IRS is to be on top of all of your required payments and forms. Set reminders in your calendar for when you should have your taxes filed and if you need to speak with financial advisors or accountants regarding any last minute items.
Use time tracking software
One of the biggest components to bookkeeping is having proper time-keeping records for all of your employees. Find a software that not only makes your life easier but is easily accessible for your employees as well. If it’s easy for them to track their time, it’ll be even easier for you to record work hours, PTO, overtime, etc.
While bookkeeping can be overwhelming, with the right amount of organization and knowledge you too can stay on top of the financial items that are important to you and your small business. For more information about the small business virtual CFO or remote CFO services we offer, please visit our website here: https://emeraldfinancialpartners.com/remote-cfo-services/.