Let’s say you’re a small business owner and you have a regular job as well, how much time do you dedicate to balance your books at the end of each month and exactly know how much you made in profits?
If your answer is about 2-3 hours a week, then most likely you have a good handle on your business finances. But if you’re the kind that guesstimates your monthly sales and gets overwhelmed on different sales categories to enter your transaction. Most of the time you are growing your business and the daily task of bookkeeping could be handled by a pro.
Do all Businesses have a bookkeeping person?
Nearly 45% of small businesses don’t have an accountant or bookkeeper. Even using the most popular accounting software, Quickbooks, the task of entry and learning the process takes away the attention of your customers and more importantly grow your business.
Local Tax understands small businesses, since we we’re once a small business too. What we saw in years of our practice is the stress of business owners struggling to understand what all the numbers mean and entering the various transactions in each category.
Specially in the helm of taxes. There are hundreds of credits and deductions that a small business can take advantage of but misses the opportunity come tax season.
We break down the following for our clients:
- What you Earn?
- What you spend?
- What you owe?
- What you own?
Bookkeeping is the pillar of your business
Tracking sales, assets and liabilities gives you a better perspective. For example, if you drive for Uber or Lyft as a side hustle, you are considered as a business by the IRS and you’ll have some tax obligations that you need to pay come tax time.
Plus, not having the breakdown of your bookkeeping, you could miss the important credits and deductions and lower your tax liabilities in the long run.
Investing in bookkeeping services
If your side hustle is almost overtaking your main source of income. It may be the perfect time to invest and have a professional handle your bookkeeping duties. You’ll have your main focus in growing your services or improve your branding and serve your client more.
You’ll be able to monitor the day-to-day flow of your business and maybe start considering to hire your first employee.
Accounting and Bookkeeping Services
Most of the small businesses are not aware that they have room for even a basic online bookkeeping service.
Take a moment and make a budget for an online bookkeeping service and if you prefer a more personalized approach, ask around your neighborhood small businesses with services that can be tiered to your needs.
If you are organized and tech-savvy and log all your invoices each time you spend using your business accounts, get an online bookkeeping service that can take a picture of your receipt and store it come tax time.
Familiarizing yourself with Bookkeeping
Familiarizing yourself with the flow of your finances gives you a perspective on what areas of your business grow and capitalize on it.
If you have any questions about bookkeeping services or need assistance with your taxes, let us know. Consultations are free with our certified tax professionals.
Es un compañia de servicios de preparacion de impuestos que puede ayudar en Español.
llámenos hoy 562.925.2003!
