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

8 Simple Ways To Keep Your Home Office Organized & Functional

Many small business owners look for ways and ideas to keep their home offices organized. I've created 8 basic steps to help you do just that. I encourage you to tailor these to your specific needs and you will be amazed at how functional you and your office will become. After all who doesn't get more done when working in a clean and organized environment?

1.) Invest in a label maker: they're fairly inexpensive and it's a great way to keep things uniform, neat, and easy to read when creating files and folders.

2.) Have a minimum of 2 filing systems: I recommend having one that is portable (crate/file box) and one that is stationary (file cabinet). *** Remember when choosing these, think of what and how much will be stored in them. You want to make sure they will be large enough so it eliminates having to get more and accommodating them with the previous ones.

**Portable filing system; Use this system to hold documents and information that is commonly used and filed on a regular basis. This allows you to move it around the house and accommodate you and still get your filing done. (I like to watch TV and do my filing, so this works out great.)

**Stationary filing system; Use this system to store items and documents that are less often referred back to and that don't require filing on a daily basis.

3.) Use different color hanging files: When organizing your filing system use different color hanging files for categorizing and then plain manila folders for sub-categorizing within them. (example: I use a red hanging file for business expenses and use manila folders within it to separate my different business expenses, one for each type of expense.)

4.) Sort filing systems by importance and most commonly used: Many people sort alphabetically, I like to sort by importance. My most commonly used ones first and so on. That way it's easy to find and you don't have to go through the unnecessary in order to find what you're looking for.

5.) Have a 2-3 tier filing tray on your desk: Label one; things to complete/finish and label the other; items to be filed. If you have a third tier, label that one; urgent. By sorting all your paperwork in this tray it will eliminate those stacks of documents laying around and cluttering your office. They should all fall into one of these catagories.

6.) Keep a garbage can handy: If you don't already have one, get one. If you don't use it, use it. It will help eliminate right off the bat all the extra uneaded clutter.

7.) Get a wipe off monthly calander board: Hang it on the wall in your office and use it specifically for important appointments, dates, and deadlines. Place it where you will see it.

8.) Banker Boxes: At the end of the year, transfer all the manila sub-folders out of all your filing systems into these. Label them with the year and store them away for easy reference. Keep all colored hanging files and reuse them for the next year, all you'll need to replace will be the manila sub-folders in each catagory. This will save you time and money.

Now that I've provided you with these simple steps, the rest is up to you. If you don't keep up with it on a regular basis, it will likely get out of control again. Remember; having an organized office will help you run your business more efficiently!

Kicks to a great day~

Melissa