How to Level Up Your Accounting and Bookkeeping
The journey of entrepreneurship is an exhilarating experience filled with passion, ambition, and the thrill of bringing your vision to life.
But for many business owners, the excitement can quickly give way to stress and confusion when faced with the task of managing finances.
If you find yourself in a position where the terms "accounting" and "bookkeeping" elicit a sense of overwhelm, you're not alone.
Many entrepreneurs often struggle with the complexities of financial management and unintentionally jeopardize the foundation of their ventures.
We find that so many business owners either:
1) Ignore accounting and bookkeeping until it’s crunch time in tax season.
2) Hire it out but then end up unhappy with the services they are receiving
In fact, the most popular complaint we hear is regarding slow or non existent communication from their accountant.
We don’t want either of these for you!
You can level up your accounting so that you can experience maximum tax savings, make decisions confidently and quickly, and focus on the things you love doing.
Here’s how you do it:
1) Ensure all business transactions are accurately recorded
Bookkeeping is truly the backbone of your business, and it’s crucial for the financial health and success of your business.
Books that are a mess lead to:
· Painful tax prep
· Painful decision making
· Panful fees
· Painful IRS or State audits
2) Monitor and understand your cash flow
Monitoring your cash flow allows you to plan for upcoming expenses and manage working capital effectively.
You want to avoid cash shortages that often result in accumulating debt and you also want to avoid too much cash sitting in an account not earning any interest.
3) Produce financial statements for your business
Detailed statements and reports will help you understand performance and make decisions quickly with confidence.
Reliable financial statements will also help open more opportunities for investors and lenders.
4) Prioritize tax compliance and optimization
This helps ensure compliance with tax regulation so that you avoid penalties and legal issues.
It also helps ensure you receive all the tax deductions you are eligible for. This is where a great accountant shines.
We see so many business owners miss out on things like S-Corp election, qualified business income (QBI), home office deduction, the optimal entity structure, retirement plans, and other tax strategies that can offer them huge tax savings.
5) Forecast and plan
Proactive planning helps business plan for growth and align resources with objectives.
This forward-looking approach really helps business owners plan for long-term goals.
Implement with an A Team Around You
Now how do implement these improvements to level up your accounting and bookkeeping?
Typically, we find it’s more profitable to outsource or to hire someone internally to handle accounting, tax and fiance tasks because your time is better spent on growth and core business activities.
If you have a team of good professionals around you, you will be miles ahead of everyone else.
Many business owners don't want to invest in professionals early on. But it ends up costing them a lot more in the long run.
Don't wait on getting an A team around you.
If you’re looking for an accounting partner, we’d love to serve you!
We provide a full suite of accounting services to business owners. We go above and beyond to provide a holistic approach to your accounting needs which includes organized books, efficient payroll and paying the legal minimum tax bill without leaving the IRS a tip!
Our accounting services include:
· Bookkeeping
· Payroll
· Tax Preparation and Tax Planning
· Monthly Financial Reporting
· Quarterly Estimated Payments
· CPA/CFP Team
And you’ll never have to worry about not getting ahold of your accountant. We are responsive and prioritize quick communication.
Happy Planning!
Tim & Alexis
