Year End Bookkeeping Tips for Small Business Owners & Entrepreneurs
The Christmas season is about spending time with loved ones, baking cookies, and holiday parties. However, for many small business owners it is the end of their fiscal year, and it is time to get the books together in time for tax season in order to avoid filing an extension-once again.
Here are some bookkeeping tips to keep you organized and focused these holidays:
-Be aware of your tax liability- By running a profit and loss statement, you can see if your income is higher than you planned. If so, you maybe able to see if you can squeeze in a few extra purchases so your tax liability isn’t as high.
-Schedule payments-Take a few minutes to schedule payroll and payroll taxes for your employees so you can take the time off and not have to worry if it is another item to check off your list. Do the same for your personal bills, utilities etc., and then take the time to relax this Christmas.
-Create invoices-Send out and schedule any invoices so they don’t remain unpaid by clients. This keeps your cash flow running smoothly. Also, pay any outstanding invoices owed to your vendors and any late payments from customers.
-Organize receipts-Some people still have a shoebox full of receipts. To save time when it comes to entering your expenses; take a photo of them and upload to a cloud file like google drive, dropbox, or even create a folder in your email.
-Cancel any recurring subscriptions you haven’t used lately or do not plan to use in the new year. Go through your bank statements for 2-3 months, and see if you have any duplicate amounts. Call the company or logon to your account to cancel your billing.
These Christmas bookkeeping tips are important, but above all make your enjoy every moment spent with your family and friends and eat plenty of food and cookies!
From Magnolia Virtual Solutions, we wish you Happy Holidays and all the best in the New Year!