Accounting has a significant role to play in the success of your business. Other than ensuring you have a bird’s-eye view of your fiscal status, bookkeeping in Las Vegas can help you stay ahead of your business taxes. Just like in any other business function, committing a few mistakes is quite possible.
While some mistakes will be trivial to the welfare of your business, others could affect its long-term financial health. In fact, repeating some of these common mistakes could increase your operational costs and even threaten the viability of your business. Identifying such mistakes early is a sure way to prevent them from festering. Here are a few mistakes you should avoid when bookkeeping in Las Vegas:
Failing to Differentiate Between Contractors & Employees
Treating your contractors like your employees is a noble cause, but it doesn’t change the fact that they aren’t in-house employees. As such, you should classify them separately when doing bookkeeping in Las Vegas. Ideally, this allows you to deduct the expenses you channeled towards paying contractors from your taxes. If you classify them as employees, you will let go of significant tax savings, which could raise the amount of taxes you pay.
Failing to Maintain the Receipts for Business Purchases
The IRS will typically assess your different business expenses before rewarding you with a deduction. If you fail to hold on to receipts of business purchases, proving some transactions becomes an uphill task. This is why being consistent with your bookkeeping is essential. Sure, your business credit card does record some transactions, but the information on these statements tends to be vague in some cases.
The goal is to record business purchases and hold on to these receipts. However, you don’t need to store these receipts in drawers. Today’s tech landscape provides businesses with multiple apps for scanning and storing their business receipts. You can print out these receipts whenever you need them for bookkeeping in Las Vegas.
Not Hiring a Professional Bookkeeper
As a business owner, you could have to wear many hats, from being your business’s marketer to its bookkeeper. While it is possible to handle the bookkeeping task yourself, it isn’t a recommended choice. Keeping track of your business’s financial records can not only be time-intensive but also complicated. It is possible to make some common, unforgiving mistakes.
Hiring a CPA to help you with bookkeeping in Las Vegas can ensure that this role is in able hands as you focus on core business functions. If you feel that hiring an in-house CPA is beyond your current budget, you can always outsource the task to other businesses. Outsourcing reduces the need to look for office space and equipment, as well as set aside a salary for an in-house CPA. Outsourcing companies also offer the alternative of increasing or decreasing your accounting capabilities when the need arises.
Recording Transfers as Income
If you own multiple bank accounts, you could often transfer money from one account to another. Failing to record these transactions as transfers will imply that they are income. In the eyes of the IRS, you will have made more money than in reality. For you to avoid this issue in your bookkeeping in Las Vegas, ensure that you differentiate between bank transfers and income when recording transactions.
Your business’s finances should never be left to chance. The more control you have over your fiscal status, the easier it will be to steer the success of your business. For situations where bookkeeping seems to take too much of your time, outsourcing the role is a worthwhile alternative. Contact TheOfficeSquad to get help with bookkeeping in Las Vegas.
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