OOPS! 2017 is over and you forgot to do your bookkeeping. You are not returning your accountant’s phone calls because you don’t have the information that he needs to you’re your tax return for 2017. What should you do? You are not the only one. Every day we get a call from an optometrist or property manager who never kept any records last year. Here is what we do when faced with this dilemma.
Cash may be King but never underestimate the value of a clean balance sheet. What does clean mean and why is it important?
Our clients often ask us to help prepare their taxes in addition to the small business bookkeeping assistance we provide. Instead, we refer our clients to a CPA firm to provide tax preparation assistance. Why? Let’s look at the primary purpose of a CPA and a bookkeeping firm:
- Keeps me organized.
- Keeps me accountable on tasks I don’t care for.
- Frees me up to do the work that I love.
While your bookkeeper may include data entry in their tasks, you really should have a partner that understands your business on a deeper level, down to your day-to-day needs.
Old uncleared checks in the bank register
Payments in Undeposited Funds that have been deposited
Payments on invoices that have been deleted
Unreconciled bank accounts going back a year
I heard this advice at the JumpStart EXPO from a very successful entrepreneur. When it comes to small business bookkeeping there are two things a business owner should never do:
As the CEO and founder of BudgetEase, an outsourced bookkeeping service in Cleveland, Ohio, I meet with hundreds of small businesses each year. As prospective clients weigh their options when choosing a partner for their bookkeeping, I often get asked who do I respect in the region.
Our small business clients have varied relationships with their respective bookkeepers. Some are a part of the team on a full-time basis, while others have the bookkeeper in part-time or as needed, either weekly or even monthly.
- Determine the best type of business entity to conduct your business. The major choices include sole proprietorship, partnership, limited liability company LLC, corporation, and non profit.