Day: June 12, 2020

You might be asking why you need a bookkeeper for your small business. Professional bookkeeping services are very important for the health of your business. While there are many reasons you need a bookkeeper, these are four important reasons to consider: 1. Recordkeeping Tracking individual transactions can be stressful for business owners with multiple bank accounts, credit cards, and lines of credit. Categorizing the transactions and reconciling those accounts can be time-consuming as well. Recordkeeping is more than entering income and categorizing business expenses. Most of the time it involves receiving payments from customers through invoices, entering bills before paying the vendors, requesting W-9s from vendors, and paying off vehicles intended for business. 2. Preparing Accurate Financials Accounting needs a high-level of expertise and knowledge of financial principles. Even one or two entries that are incorrectly recorded can have a negative effect on the finances of a business. It’s important to know where, how, and when to record data. Since finalized financials are reported on either personal or business tax returns, business owners must be meticulous with how they record their transactions. Tax returns are verified and supervised by the IRS so they need to be accurate. 3. Workflow Improvement Business owners have multiple departments to handle. That’s why having an efficient workflow is crucial to their business structure. Bookkeepers can train and guide business owners on the most efficient way to facilitate the various functions of their business. 4. Increasing Productivity As entrepreneurs, time is the most valuable factor for our daily operations and activities.What is more valuable than saving time in your business? Yes, you are right! Nothing is more valuable than being time-efficient. Hiring an expert bookkeeper can cut down on tasks that waste a business owner’s time.Even though these responsibilities are being outsourced, business owners still need to understand what’s going on in their business. It’s just that the detailed accounting tasks like reconciling bank accounts or entering payables should not be the owners’ main priority.It will be more profitable and efficient for them to focus on more critical matters like creating new marketing pitches, acquiring more clients, or increasing sales.Between recordkeeping, preparing accurate financials, improving workflows and saving time, there are lots of reasons why you need a bookkeeper. How will you spend the time you gain by outsourcing your accounting tasks?

Other than healthy finances, what do business owners need to keep in mind? Deadlines! Whether you are doing your own bookkeeping or whether you have a professional bookkeeper, it is essential for your accounting documents to be filed on time so you don’t miss important accounting deadlines. Nobody wants to miss a deadline, especially when it has to do with your business. This is why business owners must take note of critical governmental agencies’ deadlines and associated penalties penalties. IRS – Important deadlines    – 01/27/2020 – Starting date for 2020 filing season   – 03/15/2020 – Last date to file for partnerships and S corporations tax returns   – 04/15/2020 – Last date to file for individual and C corporation tax returns You should always consult your tax professional for the extended details and steps to file for your tax return. Business owners should carefully consider getting their books and financials ready well before the final deadline to be set up for the tax filing. That said, there are extended filing deadlines that require specific forms to be filled out with your tax professional.    – 09/15/2020 – Last date to file for partnerships and S corporation tax returns   – 10/15/2020 – Last date to file for individual and C corporation tax returns For businesses that sell goods and charge sales tax to customers, the following deadlines are essential for the sales and use tax filing. This link https://www.cdtfa.ca.gov/taxes-and-fees/sales-use-tax-returns-filing-dates.htm can give you better guidance on when to file. CDTFA – Sales and Use Tax deadlines    – 04/30/2020 – First quarter ranging from January through March   – 07/31/2020 – Second quarter ranging from April through June   – 09/31/2020 – Third quarter ranging from July through September   – 01/31/2021 – Fourth quarter ranging from October through December. This date    is also the deadline for the 2020 yearly reporting. Recording the proper sales and use tax in your database will save you filing process time. It is crucial to have your sales tax accurately reported before the deadlines on your financials to avoid late fees and penalties.Healthy finances are vital for a successful business, but ignoring the deadlines can easily impact your finances as well. Working with a professional bookkeeper can help you stay on track so you don’t miss an important accounting deadline and so you can avoid late filing penalties. How do you keep track of all the deadlines in your business?