If you’re like most entrepreneurs, you find yourself keeping a lot of the financial details in your head. While that certainly comes with its advantages, eventually you may need some additional help. That is where QB Doc comes in. We would like to help you get organized and efficiently manage your business. Entrepreneurs like yourself need to understand that there has to be a system and a certain process to create efficiency. Having a system in place will enable you to handle unpleasant surprises in the future, be on top of your paperwork and focus on your business’ objectives; not to mention you won’t have to fear the IRS when it comes to tax time.
Here are a few tips for you:
1.You don’t have to be an entrepreneur to know that it’s wise to track your expenses.
Why: You will find this helpful so you do not end up missing tax write offs and you can manage your budget to a greater extent.
What: A simple solution to this trade would be having a credit card that you use solely for your business. You might be a little concerned about using a credit card for small supplies such as pens and paper clips but trust me, they add up. Besides, doing this will help you categorize your spending. You can see which purchases relate to different business activities. If you jot down trips, business lunches, coffee dates, and other events, it will definitely help you in the long run. It will help you verify those items and activities for tax records and personal records.
2.The second tip is related to the first one. Always keep an eye on your invoices.
Why: You want to be on top of receiving payment and paying your bills, after all you don’t want to hurt your cash flow.
What: Have a plan of action about paying bills. Make sure to follow up on all invoices and making sure they get paid on time. Delegate this task to someone that is organized and persistent as they have to be completely aware of what is going on with each client.
3.Next on the list is planning your major expenses.
Why: Well, planning is always great, as you will always be on task and do everything on schedule. You are less likely to miss out on opportunities if you have your expenses planned out. You’ll be able to allocate your budget to these bigger opportunities. The key to this is prioritizing.
What: Plan it out, a year from now, five years from now, the choices are yours and only you can really determine your business plans and what direction you want to go to. It also wouldn’t hurt to save money for business purposes which includes surprising tax charges.
4.Are you recording your deposits accurately? If not, start doing it.
Why: You know where your income is coming from and you are maybe less likely to pay taxes on money that is not income.
What: Get QuickBooks 2013, make an excel sheet or even have a handy-dandy notebook; start recording your financial activities.
If you need an help with this process feel free to call QB Doc today at 775-348-9200 or check out our website at www.qbdoc.com !