In small businesses it is even more important for the financial aspects to be kept updated and accurate. A small business’ aim is to grow and updated and accurate records are important in this growth. In a small business a bookkeeper can be beneficial to ensure that the company is on the right track in regards to its financial transactions.
Ensure Deposits are Recorded Correctly
If the deposits that you make to your business bank account are not recorded properly then you will fall into paying tax on money that is not really income. Good bookkeepers will know how best to perform this task and will also know the importance that it serves in the business you can also read more here http://pomponio.ca/bookkeeping/ that what a bookkeeper can do for you and your business.
Make Plans for the Major Expenses
As a small business, growth is always a possibility/option as there is room for additions and upgrades in the business. As a business owner you should make realistic forecasts on what you may need to spend on your business one or five years from now. You may need to add more staff and within the accounting and bookkeeping area you may need to upgrade or introduce software into your business. A bookkeeper can with proper forecasting of your expenses based on the current status of the business and where you need it to be in a few years.
Make Plans for the Taxes
Paying taxes is mandatory for all businesses whether small or large. A good bookkeeper will know the importance of setting aside money for taxes as they can make projections for approximately how much tax will be paid and when the tax needs to be paid. It can be less stressful on a business if a portion of money is put aside for taxes each month or even when each contract is paid.
Track the Business’ Expenses& Cease Cash Use
One way to ensure that you are able to keep track of your business’ expenses is to stop using cash transactions and use a business credit card. When a business is able to track its expenses it can see where tax write-offs can be applied and any bookkeeper can help to identify the tax write-offs. There are some business credit card providers that also make the process of keeping track of the expenses even more simple as they categorize the credit card bill into types of expenses. An audit is necessary for all businesses and there are some expenses that will need explaining to the auditor. For example if you travel for long distances to a meeting or have a meeting in a coffee shop or restaurant and you cover the cost, keep records of the date, expenses and mileage on your car so that you have the information available and ready for the auditor.
When a small business adapts to good financial practices at an early stage, it can help to avoid costly errors later on. Bookkeepers should also pay attention to the invoices of the business as unpaid or late bills will no doubt cause harm to the cash flow in your business. There should be processes in place for if a bill goes unpaid or is late.