For those business owners who filed for a tax extension this year, the deadline is quickly approaching on October 15.
Follow these accounting fundamentals now and throughout the year to be sure you are financially and legally prepared.
Documenting and Organizing
To make tax time as easy and painless as possible, properly organize all of your transactions and files as they come in.
- Review and complete financial statements, such as your balance sheet, income or P&L statement, and general ledger.
- Supervise your insurance policies, assets, and loans.
- Record inventory often, including a report at tax time of unsold products as these are reviewed for deductions.
- Oversee expenses for marketing, traveling, and office supplies.
- Compare your income statement with your budget and previous profits and losses.
Cash Flow
- Monitor incoming revenue, including sales receipts and bank account interest.
- Estimate projected cash flow to make more informed spending decisions.
- Pay suppliers, sales tax, and income tax on time, and track accounts payable reports.
- Send invoices that include payment requirements, and record any past due receivables.
Employees
- Provide employees with W2 forms and independent contractors with 1099 forms.
- It is a good idea to hire a payroll service to ensure you are prepared for tax reporting.
- You could also document your payroll using a spreadsheet or software such as QuickBooks.
Financial success can be achieved by accurate documentation, recording cash flow, and statement reviews. To avoid costly and time-consuming oversights, most small business owners choose to hire a tax professional.
Our personal accounting assistants will take care of fiscal details, including tracking accounts receivable to help you pay at your deadline. Allow us to handle the finances, while you concentrate on your growing business. Contact FOSS today!
