Why is Bookkeeping Important

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Accounting Firm in Stone Mountain, GA W W W. ACCO UN T IN G A ND R EFUND S .CO M

Why Bookkeeping is Important

Bookkeeping can be tedious for any business, but if your small business doesn’t keep tight books, it can make your taxes a nightmare. However, with a clear-cut process and some simple bookkeeping tips, you can get a better grip on your financial situation and even increase your earnings. The goal is to get a simplified process created detailing your business’s finances. A method that combines your expenses, invoices, deposit records, and tax information can make a small business owner’s life ten times easier, especially as tax season rolls around. Having backup documentation of purchases for your business will help you when it comes to claiming deductions on your tax returns. Record all your deposits so that you know exactly what is going into your business account; that way, you are less likely to pay taxes on cash that is not income.

10 BOOKKEEPING TIPS THAT CAN BE USED YEAR-ROUND 1. GO PAPERLESS WITH CLOUD ACCOUNTING. Most accounting software provides all the basic features you need to do any type of accounting. Intuit’s QuickBooks is one of the most popular on the market right now. Find a package designed for small business owners because it simplifies the process by providing basic templates such as printing invoices, receipts, and business invoice checks. Access your business information from anywhere by adding a cloud-based accounting system. 2. FIND A GOOD CONSULTANT. Having a good payroll consultant who can help you at least once a month can be critical. They can teach you

how to manage books properly, answer questions, and correct mistakes. Don’t worry if you are on a tight budget, as accountants have many options. 3. SEPARATE PERSONAL AND BUSINESS FINANCES. Do not confuse the two. This complicates the accounting process. If you are dealing with only one type of account, keep it organized because it is much easier to keep accurate records. In addition, maintaining these accounts separately can save you a lot of time. 4. CREATE A BASIC EXPENSE PLAN. Set aside money for significant expenses like inventory, office supplies, and repairs and maintenance. By budgeting your small business for the next few years, you do not have to worry about overseeing these expenses in the future.

ACCOUNTINGANDREFUNDS .COM | (678) 218- 6 4 3 3 | S TONE MOUNTAIN , GA


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