Basic Bookkeeping Tips

5 Basic Bookkeeping Tips your Business Can’t Live Without

You probably aren’t interested in learning all of the ins-and-outs of bookkeeping and accounting for your business. Nor do you have the time. In order to run your business properly and grow towards earning your first million, it is essential you know how to manage those books correctly. That’s why you hire a bookkeeper, right? Well, yes. But, it’s still important to understand how your finances work so you can be confident about your money and keep things moving smoothly. That’s what being a smart and financially savvy business owner is all about. After all, if the IRS comes calling, they’ll be holding YOU accountable for your financial reports, not your bookkeeper. If you want to be organized and keep your small business finances running smoothly, we’ve got some tips that will help. Here are five simple tasks to incorporate annually for your business. Plus, receive the bonus bookkeeping checklist! The Office Squad Logo 1. Review Aged Receivables. I know, you’re probably thinking, “duh”. If you have outstanding receivables it’s time to take action for a couple of reasons.

  1. If you’re using accural accounting that income is counted and taxable to you; whether you got paid or not.
  2. Collect your money. Maybe it is time to review your contracts or send to collections?

Still not getting anywhere? The Flight Club offers additional services and discounted prices which includes a local business attorney. 2. Year-End Inventory Status Analysis. Inventory is the lifeblood of your business and a healthy inventory flow enables sale closings, customer shipments, and productive work for employees. One determining factor in the value of your company is to analyze your inventory and factor in the current market value for this product. 3. Fill Out IRS Forms. Yep, we had to go there. If your bookkeeping is in good shape and has been completed correctly then this shouldn’t be a taxing effort. 4. Review Full-Year Financial Reports. It’s is all about the basics… sales vs. expenses and if your company is growing. 5. Review Tax Returns Before Giving Them to an Accountant. Never be blind sided, it’s important to understand the ins and out of your business.