Effective tax planning is something most business owners avoid primarily because they do not understand it. However, working with your bookkeeper, CPA, or tax professional could minimize the company’s tax liability. The process can help ensure you pay the lowest tax possible and ensure you have the capital to pay the taxes you owe. What
Full cycle bookkeeping goes beyond the duties of a traditional bookkeeper. A full-cycle bookkeeper can complete the entire process of the bookkeeping cycle. As such, the full cycle bookkeeper can perform all of the bookkeeping requirements of a small business. That said, there must still be controls in place to separate duties so that your
Bookkeeping for a small business requires skill and understanding of the bookkeeping functions it takes to run a business financially. Many small business owners are easily overwhelmed when it comes to bookkeeping, yet numerous resources and tools can make small business bookkeeping easy and manageable. What is bookkeeping? Simply stated, bookkeeping is the system of recording
Many indicators represent the health of a business. Working capital joins the ranks of income statements and balance sheets to determine the company’s financial status. The absence or lack of working capital affects its ability to invest in itself, its employees, technology, and continued growth. What is working capital? Working capital, also known as net
Outsourced bookkeeping is high on the list of outsourced services most hired by small business owners. Today’s businesses are still heavily in remote working and often with a reduced staff. The business owner and key management team members are wearing multiple hats, making them a jack of all trades and truly a master of none.
The dangers of not doing bookkeeping stretch far beyond the financial impact on your business. If you don’t do any bookkeeping, or just for the sake of argument, you do some bookkeeping; you are running your business with blinders on. The absence of a clear understanding of your business’s financial health can seriously affect decision-making
Understanding income statements and balance sheets are a necessary function of running a successful small business. Financial statements refer to your income statement (also referred to as your profit and loss or P&L), balance sheet, and cash flow statement. Financial statements provide you with the ability to understand a critical part of your business’s performance.
With tax season right around the corner, small businesses are preparing for tax season 2020 and getting their books ready to deliver to their tax professionals. Some companies simply hand over their books to their CPA and let them go to work. Others spend time trying to make sure their books are clean before handing
Are you thinking about hiring a bookkeeper, an accountant, or both? What is the difference between a bookkeeper and an accountant? We will shed a little light on the roles and responsibilities, highlighting the differences between an accountant and a bookkeeper. In general terms, a bookkeeper is responsible or accountable for processing your business’s day-to-day
It is a new year, and 2021 is an opportunity to clean up from 2020 and set our sights on an organized accounting system for the new year. Small business owners are looking to choose a bookkeeping software for their business. Great idea, but let’s take this a step at a time. Is there a