Tax season is behind us, but that doesn’t mean it’s time to stop thinking about business expense documentation. In fact, now is the ideal time to get organized and create record-keeping habits that make sense for your company. Nobody wants to waste time digging through receipts and records just before tax day. Document your expenses now and you’ll save yourself and your accountant a headache later on.
Working with the Motl Accounting bookkeepers affords you the opportunity to not deal with all the effort and time it takes to stay organized with your expenses. We assist many businesses with bookkeeping services in Dundee, IL and the Chicagoland area. Below we share some of the things we recommend to our clients to keep their finances organized throughout the year.
Set up a Business Bank Account
One of the biggest mistakes people make when starting a small business is not creating a bank account dedicated to business funds. If you’re using the same account for personal and business spending, it’s easy to mix these expenses up and harder to locate specific purchases. Any business-related income should be pooled into a dedicated account. Only use business checking or credit cards when making purchases. Losing track of purchases will become a thing of the past.
Save Receipts
There’s a reason you get a receipt with your purchases: to keep accurate records and back them up with physical proof. If you’re the kind of person who likes to ball up your receipts and toss them in the trash, you could end up paying for it later. Anyone who’s audited needs to show that the business purchases they made were for the company and not for personal use. If you entertain clients, write down who is present and the purpose of the meeting on the back of the receipt. Store these pieces of paper in an accordion file to keep them in the correct order.
Keep Track of Dates
You have a huge range of options when it comes to digital calendars – and each one can help you remember to pay bills and track expenses. Google calendar is a great option, because it lives in the cloud and you can access it from the office, at home or on the go with mobile. When you have a bill coming up, you can set your calendar to notify you, so you never miss an important payment. If you want to get super organized, you can even put a note on each due date, specifying who you’re paying and the purpose of each expense.
Use Helpful Software
Streamlining daily accounting tasks makes sense for any business owner, but it is especially important if you are just starting a small business or growing quickly. You can keep track of money that comes and goes by using computer programs that make the process much easier. Some programs, like Quickbooks, even allow you to link your expenses to your tax form, and separate each one by purchase type. Simplifying your tax returns takes a commitment throughout the year, but you’re sure to be glad you did once it’s time to file.
The money you spend for business serves a different purpose than the money you spend in your personal life. It’s important to make a clear distinction between the two, and get organized with your professional finances before they become a burden. Still unsure that you’ll have enough time to handle detailed expense tracking? Our professional bookkeeping services may be helpful for your business. We provide monthly income statements and balance sheets based on your company’s bank transactions. You never have to worry about day-to-day record keeping or dealing with possible tax implications. Our bookkeepers in West Dundee are on the frontlines of your expenses and we stay in constant communication with our clients to make sure expenses are appropriately made and tracked. This is so you can focus on doing what you do best, which is growing your business. This also takes away any angst you might have if your business is audited. A reliable accounting firm like Motl Accounting provides you peace of mind with managing your expenses. Unless you love plugging away at the calculator and taking on additional responsibilities, contact our Chicagoland team to make your life a little easier.