Welcome to our Bookkeeping FAQ Q&A! Whether you're a small business owner, a non-profit manager, or just someone curious about bookkeeping, we've got you covered. Let's dive in!
How do I make sure I have enough money to pay my taxes?
Tax payments can be a real headache for small businesses, but planning is your best defense. Hoard your cash all year if you expect a large tax payment at year-end, assuming taxes will equal 30% of your net profits. Many small businesses open a separate account for taxes, only to raid it for emergencies. Instead, maintain a three-month cash cushion for emergencies and exercise fiscal restraint, even when your cash balance rises. Thinking about a major purchase? Ensure you have enough cash for both the purchase and taxes. BudgetEase can help you use your financial information to make that decision or build a cash forecast so you always know what funds you have.
Should I switch to QuickBooks Online?
We love QuickBooks Online (QBO). It's easy to access and keep up to date. However, it's not suitable for all clients. If you're a small business with inventory to manage, need to progress invoice, or your existing QuickBooks file is too big, QBO might not be for you. For very small start-ups concerned about fees, an Excel spreadsheet might be better options.
Do I really need a budget?
Absolutely. A budget is like a map to your destination. QuickBooks makes the process of creating a budget and tracking your progress a snap. Budgets are so important to us that it's included in the name of our business. We prepare a budget and enter it in QuickBooks for all our clients.
I hope you found this helpful! If you need a bookkeeper to partner with your business, contact us today.