Sunday February 23, 2014
Dear Clients and Friends,
Accounting has never been a most loved task, yet it is one of the most vital in running a successful business. While it is likely that not everyone enjoy documenting and reporting on their financials, it is wonderful news to hear that accounting has become simplified and modernized.
Technology has helped this profession a lot: most accounting solutions are now cloud-based. It is easier for both the accountant and the business owners, and those interested to know about the real-time status of their finances, to be updated. Payroll, timekeeping and other financial business systems are also streamlined and automated, and are thus easily incorporated into the accounting process, making financial reporting an easy-breezy task which is both economical and highly beneficial to both accountants and their clients.
Even with technological advances and great skills from their accountants, it is still advisable that small business's observe the strategic preparations that will help them get more out of their business systems. Entrepreneurs should get the most out of these system developments by following some of the best practice tips below. These simple, practical yet effective tips can help them with their business goals while supporting their accountants' tasks in providing sound financial advice.
Save Up to Pay Up
Setting aside funds for tax payments is wise. If you treat your expected quarterly tax payments like regular expense on a monthly basis, you can save up for the equivalent amount when it is time to settle your tax. It's not just simple, it's practical. Divide your tax payments into equal monthly payments that you set aside for tax payment day, and you will not find it too heavy on the pocket.
Vision means looking ahead, planning for the future. Prudence dictates that you look ahead at least three to five years for your business and chart the course your enterprise will take. A good entrepreneur maps out his business well into the coming years.
Manage Fund Accounts Separately
Learn to separate personal from business accounts. Remember that your business is a separate entity. To avoid confusion regarding funds, set up individual accounts for your personal finances and for the business. Should you need to augment funds for the business, loaning from your personal account to pay for expenses would be easily documented.
Scrutinize as You Supervise
Always look back regularly to monitor and measure your financial statements. These reports are useful in making projections for the future in the areas of income and expenses, as well as cash flow. As you supervise your business, use all the financial tools available. Measuring past inflow and outflow will help you in business decisions and financial management.
Get one now!
It is never too early to get an accountant! You should get one the soonest possible time. Do not wait for the last minute to hire one. As the time for tax preparations draw near, it will be harder for you to secure the services of a good accountant or bookkeeper because they would already have a long list of clients to serve. And as the season reaches high noon, they might charge you a bit more. It always pays (or pays back) to start early.
Are you or do you have a dear friend who needs an accountant this tax season? Call us! You can count on us for professional advise, accounting and bookkeeping service or tax compliance and consultancy. We are here to make sure you are prepared and ready for tax season- at all times!