It’s easy to fall behind on bookkeeping, especially if your business has been impacted by a major disruption. While it seems like something you can put off, bookkeeping is necessary work that must be done. If you’ve fallen behind and need to quickly catch up on bookkeeping, there are several things that can be done to make up for lost time. Find out what they are to put your business and your finances on a better footing going forward.
Need to get your business’s finances in order fast?
Contact Larry L. Bertsch, CPA & Associates for the bookkeeping services you need!
Distinguish Personal from Business
The first step of bookkeeping is to separate your personal finances from those of your business. For one, you open yourself personally to liabilities incurred by your business if you use the same accounts for personal and corporate expenses. Without separating both accounts, you also lose the ability to deduct business expenses as such and may incur larger tax liabilities as a result. You can also build a separate credit history for your own business if it has its own accounts, but if you use your own, your business will adopt your credit score, limiting your ability to borrow and personally liable for debts your business incurs.
Business Bank Account
As a business owner, you should have a bank account and credit card solely for your business that is separate from your personal finances. This makes all of the expenses charged to and from your business easier to track.
Business owners should use digital receipts instead of paper receipts, because they can be backed up in the cloud, making it nearly impossible to lose them. This makes them easier to store, find, and use for bookkeeping, whereas a paper copy can easily be lost or misplaced.
Use digital documents and software to save and store your files, instead of relying solely on paper. Digital copies have resiliency that paper copies lack. Accounting software makes storing and grouping information or files together a painless process, as well as eases the process of finding particular information from certain documents.
Accounting software makes it easier to stay on top of bookkeeping, making it a must for today’s businesses. Many software packages allow users to easily extract data from digital documents, drastically cutting down the time it would take to collate documents and enter the data. This also minimizes the chance for human error and makes information sharing a snap. Accounting software can also allow users to easily compare past information with current to spot trends.
Make sure you have all invoices from customers, payment info from vendors, and any other records of your transactions. You may find that some of your customers still haven’t paid or that you owe a supplier. In the case of disputes, you’ll have a record of what is owed and what’s been paid. Keep your invoices in a digital format to make them easier to find and use.
Hire A Professional Bookkeeper (Like Us!)
If you find the task too daunting to handle on your own, you can quickly catch up with bookkeeping by hiring a professional bookkeeping company. They can organize all of your records and parse through them to determine the state of your company’s finances. They can alert your company to any tax obligations it may have, as well as potential tax savings. You’ll also save yourself the hassle of sorting through your tax documents, freeing up valuable time for tasks that can better serve your business.
It’s easy to fall behind in your bookkeeping, but it’s vital to stay on top of it, as the information you obtain from well-kept records can help you better run your business. Bookkeeping is also a necessity for filing your taxes, making it sensible to keep up with it to avoid a year-end scramble. Since bookkeeping is something that has to be done eventually, it makes sense to make a regular habit of doing it or working with someone who can keep track of it for you. Larry L. Bertsch, CPA & Associates has been serving the Las Vegas area for nearly 20 years and would be happy to help your business with its bookkeeping needs.