Written by Bookkeeping is a must because it will help keep your accounts organized. It is essential for businesses of every size because it will help you plan your tax payments in advance and will prevent panic and trouble from tax authorities.
- Record, Record, Record.
If you own a small business, this is one aspect you need to be on top of so that your business records remain on track. In order to maintain a good record, you need to keep receipts, bank statements, invoices, payroll records, loan documents, deductions and credit histories.
Tip: Create a file folder for each month and file your receipts accordingly. Don’t forget to do the same with digital receipts.
- Be Accurate! Choose a method!
To prevent problems, you need to be accurate, and this means you need to balance and record transactions correctly on a daily basis. You need to record daily sales and cash receipts and must pay all of your bills regularly and keep a record of each. Small businesses can choose to have an in-house team of accountants or an outside professional who provides bookkeeping services. Whichever option you decide to go with, you need to oversee these activities to ensure they are being done correctly because discrepancies can lead to a number of headaches, including tax penalties, so your figures need to add up, and consistency must be maintained.
- Business and Personal are Separate!
It is also important that small businesses keep their personal and business finances separate. Personal bookkeeping and business bookkeeping are two different areas, and they must be kept separate so that you can make smart financial decisions. You need to keep track of this so that these areas are not combined, and the expenses and deposits of both your business and personal account must be isolated and recorded in batches.
Tip: Write the purpose of the purchase directly on your receipts
- Plan for the Big Ones!
Planning any major expenses is another great way of keeping your records on track, so take these into consideration when creating your business plan. This will allow you to acknowledge and record them effectively whenever the actual expense is carried out and will prevent you from spending company cash for items that are not currently a priority.
- Be in the “Know”!
Tax write-offs are available for certain situations, and in order to benefit from these, you need to track each and every expense on a daily basis so that you don’t miss out on any benefits you may be entitled to.
- Checks and Balances!
Audit your records because this will ensure that your accounting staff or your accounting service providers are following the right procedures. You can choose to do this manually or through an automatic system on a weekly, monthly or quarterly basis. Reviewing their monthly activities will help you keep a tab on these very important practices, and you will be able to detect any discrepancies if any are present.
Bookkeeping can be tricky, but the experts at Oasis LLP can help. Our accountants and bookkeeping services will help you and your business stay on the right track, so if you are looking for a tax accountant near me in the Richmond Hill, Markham, or Vaughan areas, contact us today!
