Unless you’re fond of working with numbers and tax regulations, accounting may not be your favorite part about running a business. However, by adopting a system, and turning it into a habit, you can make accounts and tax preparation a smoother process for your business. Also, you can avoid several costly errors!
To help you set up an effective system that enables you to manage your money better, and simplify your taxes, Peter’s Accounting & Bookkeeping has put together a list of five tips for small business bookkeeping. These tips cover the basic requirements for successful accounting and even contribute to improved cash-flow and reduced confusion.
Tip #1: Always set aside money for year-end taxes.
Make a provision for your tax payments to ensure you are never short of money when it’s time to pay your taxes. Speak to your accountant for a rough approximation of the amount you’ll owe at the end of the year.
Tip #2: Keep your information organized.
Filling your taxes and maintaining accounts requires the organization of financial documents like bills, invoices, and receipts. Maintain a file for these things and arrange them in chronological order for efficiency.
Tip #3: Record deposits correctly.
When you make a deposit, ensure that it’s been recorded correctly for future reference. Incorrect records may cause unnecessary confusion and trouble while calculating your revenue, savings, and paying your dues.
Tip #4: Track and store receipts for all your expenses.
Whenever you make a purchase or payment for your company, collect a receipt for the expense and store it securely. These receipts serve as proof of the transaction, and come in handy when filing taxes or making claims.
Tip #5: Plan for significant expenses in the future.
When you plan your significant expenses, you can strategically use your finances, without depleting your reserves. Moreover, you can make sure you’ve set aside sufficient for different costs, which must be paid every month.
To ensure your financial planning is done correctly, reach out to the experts at Peter’s Accounting & Bookkeeping. We specialize in accounting and bookkeeping services in Ancaster, Ontario, to help small businesses overcome their accounting troubles and prosper rapidly. We keep ourselves updated on the latest accounting regulations and laws, so we can efficiently take care of your bookkeeping, tax preparation, and accounting requirements.