Are You Behind on Your Bookkeeping? Here’s How To Get Ahead!

The receipts are building up, nothing has been entered into your bookkeeping system, and you can’t recall which clients have received invoices or which suppliers have been paid yet. It appears to be a mountain you don’t have the time or energy to climb, and that mountain keeps growing.

Hiring an accounting firm to get your books caught up would be the simplest solution. However, you must follow several crucial procedures if you decide to do it yourself.

Organize The Paperwork.

Get your bank statements, tax forms, invoices, and supporting documentation out. You are now prepared to handle them effectively.Digitising them is a good move because it will make them much easier to organise and locate on your computer than in a desk drawer.

Record And Pay Supplier Invoices.

Verify that you have received bills for each purchase by checking all of your vendor accounts. This is highly crucial when your company’s tax year is almost over, and the vendor can be delinquent in providing bills. Without them, you won’t be able to complete your tax return or an accurate year-end financial statement.

Update Your Customer Debts And Payments.

In your books, enter paid invoices.  Check all client accounts for past-due payments, then send reminders. Make a note to write off the obligation as a bad debt on your tax return if it is severely past due or otherwise uncollectible.

Keep Track Of Your Deductible Spending.

Gather all of your receipts from business trips, equipment purchases, and other costs that you can utilize to reduce your tax obligation.

Account Reconciliation.

This is the time to confirm that the balance shown on your bank account and in your books match. Check each transaction to see what transpired and if there is a discrepancy. In the worst-case situation, your account has been hacked. It could also be a simple data entry mistake, credit or debit you neglected to record in your chequebook register. Whatever it is, you must find out right away.

Revise Your Tax Forms.

For regular employees, you must submit an IRS Form W-2. Form W-9 and Form 1099-Misc must be submitted for independent contractors.

Send In Your Sales Tax Payments.

Every state where you do business with clients requires you to register to collect sales tax. Companies engaged in e-commerce should be aware that regulations are quickly evolving and that the traditional “nexus” of having a physical presence in the state is no longer valid.

To avoid late fees, submit the taxes you collected before the state’s deadlines.

We can Help!

You can rely on our bookkeeping services. Our staff wants to make the bookkeeping process less expensive so that you can expand your business much more effectively. Get in touch with us today!

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Focus On Growing Your Business, Leave The Accounting On Us!

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