Business bookkeeping is integral to the growth of small businesses.
It’s important to keep up with physical and virtual documents.
Business owners should also keep books that detail things such as receipts, invoices, payroll, and charitable donations.
Accurate record keeping is one of the best ways to measure gains, losses, and yearly expenses.
Both new and growing businesses will continue to benefit from detailed records that can illustrate to lenders the growth and investment potential of their business.
Without verifiable documents, it will be difficult to provide a proper valuation of a business.
The IRS lists some bookkeeping tips that business owners should keep track of such as:
- gross receipts
- purchases
- expenses
- travel
- assets
- employment taxes.
If you log any of this information into a virtual system be sure to back up your records in the event of a computer malfunction.
Also, because we live in the age of identity theft it is recommended that you have virtual security measures in place to protect all of your virtual business documents.
The IRS also recommends storing valuable records in a safe place.
It may also be worthwhile to invest in some type of safe that protects physical documents from any potentially hazardous elements like fires and flood damage.
In the event of an IRS audit it is critical that you can prove everything that you’ve reported on your tax documents to the government.
Being able to provide accurate records is vital when it comes time to file your taxes.
Organizing your files by year would also be helpful in case an audit takes place. Your accountant will need a detailed record of all your business transactions at the end of the year to assess your tax liability, or lack thereof.
Neatly organized and complete business records will help reduce stress, and increase the probability of overall company success.
Instead of worrying about all of the aforementioned processes on your own contact us for small business solutions such as accounting, administration, and payroll.
We look forward to providing you with an invaluable and professional business service that creates more time for you to focus on making your business a success.
