6 Tips to Save Time and Money for Small Business Owners
Small business owners can sometimes find bookkeeping a daunting task when it comes to managing their business and feel that it takes away from their day-to-day business operations. However, successful business owners adopt certain practices and procedures to help them organize the mounting receipts, invoices, and paperwork in an effort to help them stay on top of their bookkeeping and, in doing so, help themselves save time, money, and stress.
Being that accounting can, at times, be intimidating due to the looming fear that the Internal Revenue Service might come knocking at your door, here are some time and money saving tips to better prepare yourself for organizing your finances.
1. Use Accounting Software
Accountants are usually very happy to see their clients sending over digital accounting files because it usually means that the business owner has been keeping their bookkeeping up-to-date, which makes accountants fairly confident in ensuring that their clients receive every eligible deduction on their tax returns. Accounting software has many benefits like making reconciliation simpler, data input is easy, it can formalize financial statements for you, it can help you track both your client and vendor history, and helps to audit-proof the books.
2. Use Receipt Scanning Software to Stay Organized
Scanning your receipts helps to keep your transactions organized and easy to find when needed. Today there are numerous receipt scanning software applications that one can use to keep track of their receipts, even on mobile, many of which will import directly into your accounting software like QuickBooks. The utilization of receipt scanning software or apps, like Receipts by Wave, can help to save time, money, and paper.
3. Keep Personal and Business Finances Separate
Like many entrepreneurs, when you first started your business you probably used your personal finances as startup capital or secured a loan with your personal credit score to support your business. However, as your business continues to grow you will want to make sure to create a clear separation between your business and personal finances. Be sure to save and maintain the supporting documentation proving the separation as it is pivotal staying in the good graces of the law and the IRS.
4. Abstain from Using Cash
In regards to bookkeeping, it’s good practice to use a debit or business credit card. When using cash, small business owners can lose track of potential write-offs or deductions. If you do run into a situation where cash is necessary, pull money from your ATM and be sure note on the receipt the purpose of the withdrawal. The use of your business credit card can also help to build your credit.
5. Track Your Mileage
Remembering to track your mileage and keeping written records of that mileage can be a burden. Luckily there are numerous phone apps, computer programs, and satellite-assisted services now that can help businesses keep track of their mileage automatically, saving companies both time and money.
6. Meet with your CPA Semiannually
Meeting with your CPA on a regular basis to review possible business plans, budgeting, tax deposits, payroll procedures, charitable contributions, and tax strategies is another important piece to helping you save. Tax costs are too high to leave it to chance and meeting with your CPA on a regular basis can help to save you thousands of dollars.
Do you need help managing your business finances?
At Verdeja, De Armas & Trujillo LLP, our team of Miami accountants is dedicated to providing personalized, financial guidance. We provide accurate and comprehensive financial statements as well as in-depth business analyses. Contact us today for a consultation!