Stay Ahead This Year: How Your Bookkeeper Can Keep You on Track
What Business Owners Need to Know to Stay Ahead
Running a business is exciting, but it also comes with responsibilities you can’t ignore. Some things, if not handled on time, can cost you a lot of money or create unnecessary stress. Here are key areas to focus on to keep your business in great shape.
1. Stay on Top of Taxes
Missing tax deadlines or forgetting to pay estimated taxes can lead to hefty penalties. Make sure you:
Know when your federal, state, and local taxes are due.
Set reminders for quarterly estimated tax payments.
Keep all your receipts and records organized for deductions.
2. Keep Your Books Updated
Falling behind on bookkeeping can make tax season and business decisions harder. Regularly:
Reconcile your bank and credit card accounts.
Record all income and expenses promptly.
Categorize your expenses correctly to avoid missing deductions.
3. Prepare for Employee and Contractor Requirements
If you have a team, you need to:
Issue W-2 forms to employees by January 31.
Provide 1099 forms to contractors if you paid them $600 or more.
Ensure payroll taxes are filed on time.
4. Watch Out for Compliance Issues
Certain industries have specific rules and regulations. Failing to comply can lead to fines or even lawsuits. Examples include:
Sales tax collection (for goods and taxable services).
Business licenses and permits.
Industry-specific insurance requirements.
5. Separate Business and Personal Finances
Mixing personal and business finances is not just messy – it can lead to tax and legal problems. Always:
Use a dedicated business bank account.
Have a business credit card for company expenses.
6. Be Ready for Unexpected Expenses
Having an emergency fund for your business can save you from dipping into personal savings. Plan for:
Equipment repairs.
Sudden drops in income.
Unplanned legal or compliance fees.
7. Consult Professionals
You don’t have to do it all alone. A bookkeeper, accountant, or business advisor can:
Ensure your books are accurate.
Help you find tax-saving opportunities.
Keep you compliant with regulations.
Staying mindful of these areas can save you money and help your business thrive. Many of these tasks, like keeping your books updated and preparing for taxes, can be handed over to a professional bookkeeper. This frees up your time to focus on growing your business while having peace of mind that everything is handled correctly. If you’re feeling overwhelmed, don’t hesitate to reach out for support. Tackling these challenges early can make all the difference!
