We're halfway through the year already, and that means you should already be preparing your business records for next years' tax returns.
The 6-month mark is the time to:
- review 1st and 2nd quarter financial statements
- adjust marketing budgets if necessary
- tweak 3rd and 4th quarter marketing strategies based on previous quarters' earnings results
- prepare financials for September 15 payroll tax deposit
- file annual tax return October 15 if you requested a 6-month extension
As you review your 1st and 2nd quarter financial statements, clean up your entries. Downloading financials during your online banking sessions is convenient but often results in messy entries with nonsensical vendor names.
Consider outsourcing your bookkeeping needs. A financial professional can:
- Make sure all your bank statements are reconciled as they become available
- Review and prepare payroll records and monthly tax deposits
- Record income and expenses, make bank deposits and store expense receipts for later reference
Even if you have no employees and work alone, it's critical to turn those service calls into invoices and accounts receivable into paid invoices. Consistent cash flow is crucial to keeping your business running. If your customer payments get behind, your bank register can go into the red very quickly, potentially ruining your business credit and eventually putting you out of business altogether.
All that can be avoided when you let a professional handle your bookkeeping and accounting services. They can keep track of your invoices and let you know which accounts are overdue and which clients need a follow-up phone call.
Payroll services that an accountant or bookkeeping firm can offer include administration of 941s and 940s, tracking employee vacation and sick pay according to your stipulated company policies and issuing either paper or direct deposit paychecks. At year's end, They will make sure your employees receive their W2s in a timely manner.
When you went into business for yourself, you might not have realized all the administrative details that need to be handled. You probably never intended to spend 80 hours a week holed up in an office or in front of a computer somewhere, sifting through business receipts and trying to keep track of government dictated deadlines. As an independent business owner, you should have plenty of free time to pursue your own personal interests and to be with your family.
Let a professional financial services company (such as Jeff Baker & Associates, PS) help you declare your financial independence this 4th of July.