When it comes to priorities and the tasks needing to be done for a small business many people are focusing on making quotas, finding new customers and keeping their current customers. In many cases trying to figure out what taxes to pay, where to put money and a slew of other tasks dealing with the financial side of business are often overlooked, so utilizing bookkeeping services for small business can be a good fit for some small business owners that prefer to focus on growing their business.
This is why we put together this bookkeeping for small business checklist. Helping you manage what needs to get done before it piles up or help you decide to let a bookkeeping services for small business like BooXkeeping to handle it for you.
Managing your Cash
It is vital that you know how much cash you have on hand, what is coming in, what is going out and who owes you. When it comes to the cash flow of a business every penny counts and if you can’t account for it then you could be in trouble.
Customers and Vendors
Customers and vendors are the gears and grease that make your business run. If you don’t have vendors you don’t have products to sell. If you don’t have customers you don’t have items to purchase from vendors. As you can see these two items work hand in hand. Keeping a stable balance between the two will ensure that you don’t have too much inventory, too little inventory and both vendors and customers are happy.
When running a business it is the hopes and dreams of some owners to have employees working hard while your busy growing your business. Well, this might not be the ultimate dream but if we don’t have employees in our business we are doing a lot of work. When it comes to employees we need to deal with many items associated with them.
A. Payroll Taxes – When it comes to the government they want to get their money. To accomplish this with employees is to take out taxes from their paychecks. This employee withholding money is paid to the government each week or every two weeks. Also associated with this is a form 941 that needs to be filed with the government as well.
B. State Withholding Taxes – Just like the Federal Government the state wants to get their money as well. It is important that you take out the appropriate state tax, place them in a separate account and pay them to the government each month or quarter.
Profit and loss statements
In business you need to know if you are making money or losing money. This is where your profit and loss statement comes in. It is important that you keep this up to date and make adjustments in your business accordingly.
Tasks for the end of the year
It is also important that you know how to close out your year. Creating a end of year checklist will help ensure that you have all of your paperwork in order and can easily hand it over to your CPA in order for them to get your taxes done quickly and effortlessly. Here are a few items that you will want to have in your list.
1. Balance and close your books – Make sure that all of your numbers add up and you aren’t forgetting something important or overlooking some stupid mistake like a debit or a credit in the wrong place.
2. Send all your W2’s and 1099’s out to your clients and employees. This is important to do quickly so that your employees and clients can start filing their taxes.
3. File your own personal Income Taxes – outside of bookkeeping services for small business, it is also important that you file your own income taxes and not just the taxes for your business. Many people will combine their personal income and their business income and try to file together. This is a big mistake and will result in issues later on.
With Bookkeeping for small business it is important to know what to do and when. With this checklist you are able to look at what needs to be done, plan your business activities and hopefully run your business without your business running you or at least decide to let bookkeeping services for small business like BooXkeeping do it for you so you can focus on growing your business.