In my practice, and every other public accounting firm where I’ve worked, the biggest cost driver of professional fees for our small business clients has been a lack of organization in their financial systems. No one likes being disorganized, and no one likes the consequences of being disorganized. However, with the multitude of demands on the time of a small business owner, it can be very difficult to stay up-to-date on the accounting. Here are a few ideas to help to minimize the chaos.
Stay current. Procrastination is a painful spiral. Trying to take on a year’s worth of bookkeeping at once feels like an impossible task. While you don’t have to work on the books every day or every week, setting aside a time every month to work on the accounting for your business will keep you on track. This will also give you continual, current financial information, which is critical to making smart business decisions.
Have a process. It’s easier to get going when you know what steps you’re going to take to get your accounting work done. A good place to start is entering all of your cash transactions and reconciling your bank statement balance. Once you know that your books accurately reflect your cash, you can move on to making other adjustments as needed. If you follow the same steps every month, it will help you not to be overwhelmed thinking about the books; plus, you’ll work more quickly.
Get help. Here at Kirkpatrick CPA, we’re glad to answer any specific questions you have about transactions and about having a good bookkeeping process.
Having well organized, timely, completed books will help make your tax compliance cheaper and get your return to you earlier, while also enabling us to focus on ways to minimize your tax burden and make your business more effective. If you’re worried about your books, get organized; you’ll find some relief!