Bookkeeping, Yes or No?

There are many small businesses and home based businesses that don't have or don't implement their own bookkeeping practices. If you're someone that just keeps all your business related receipts together and at the end of the year hand them over to a tax professional, I have some ideas and strategies that will allow you to keep track of and document all the critical information about your business' financial transactions. You and your business will reap the rewards of having a functional and active bookkeeping system in place. You and your business will be more organized, you will be able to see exactly where your business is making money and where it isn't, you will be able to better predict the future of your business, you will be able to see how your business is doing financially at any point in time, and no more unwanted surprises at the end of the year when filing taxes!

** First of all, the most important thing I have to say about documenting financial information about your business is; If you don't have a separate business bank account, get one. It's really important to keep your business and personal accounts separate. This allows you to keep better records and also makes it easier when tax time rolls around. (Any fees or monthly service charges that are associated with a business account is tax deductible also.)

** One question you might be asking when it comes to bookkeeping is: Should I get an accounting software program? Well, it is an extremely useful tool, but you should ask yourself some questions first:

• Am I knowledgeable enough myself to navigate my way around the program?

Yes, they come with books to help with it, but if you have absolutely no clue when it comes to accounting, it may be more difficult and time consuming than it's worth.

• What specific information and data about my business will I be using the software for and will it do what I need and want?

Don't just think of the present time either, be expansive and think about where your business might be in the future and how your needs might change. This will allow your business to grow without having to purchase new software to accommodate it.

• Can I integrate the accounting software with other programs on my computer that I currently use with my business?

Now I'm going to give some tips on tracking and documenting financial information about your business without having to get an accounting software program and it can be just as effective.

If you have Microsoft Office on your computer and you know your way around Microsoft Excel, this is an extremely great program that allows you to create spreadsheets to document lots of information. When using Excel you are able to set up functions that can calculate numerical information. It can multiply, divide, add, subtract, and calculate percentages on groups of numbers that you specify. It's just like a calculator but you don't have to punch in each number, it will automatically do it for you once it is set up. It's fast and efficient.
I've created numerous spreadsheets in Excel to document such things as, income/sales, expenses, mileage, customer contacts, sales tax payable, and even payroll.
You can take the information in these spreadsheets and import graphs so you then will also have a visual aide when it comes to viewing the information.

If this sounds like way to much and you don't know your way around Excel, you can do the same thing manually using a general ledger book that you can buy at any Wal-Mart. Another option is to hire someone, like myself, to do your bookkeeping for you, which is fairly inexpensive and can provide you and your business with such information that is specifically tailored to your business.

Any which way you decide to go, it is imperative that you know how crucial it is to keep good and accurate records when it comes to your business. **Just remember, the IRS can audit anyone, all the way back to 7 years.

If you're looking to get in touch with me about the services I provide to small business and what I can possibly do for you, please email me at: melissahilmerson@clearwire.net