Handling your own bookkeeping isn’t a money savings strategy that any business can afford to gamble with; it can also prevent you from being dragged into a possible lawsuit over co-mingling of personal spending with business funds. There are five important reasons for maintaining a checkbook and separate books for each of your businesses when operating more than one entity and a San Diego bookkeeping company like BooXkeeping know exactly how to handle this for you:
- Corporate covering. Keeping a separate checkbook corroborates the corporate veil or corporate covering, one of the main reasons for developing a new corporation. Having an isolated checkbook shows that you are aware the company is its own separate entity. Nonetheless, separate checkbooks should motivate you not to mix business and personal funds.
- Tax savings. Separate financing will advance bookkeeping procedures, provide better records to improve your tax return, and prevent payments from being missed
- Audit shield. Having an isolated checkbook will help in the event of an IRS audit. The IRS will frequently not allow a number of costs when business and personal expenses are joined together in a single checkbook.
- More sanity less stress. When your books are unorganized, you’ll feel never ending stress to improve it, and this eventually can cause you to feel incomplete. Separate bookkeeping and checking for a new entity will save you money and time.
- Better decision making. Having a separate checkbook begins the cycle of better budgeting, expense tracking, and bookkeeping, which leads to superb decision making. It is impossible for you to be a successful, prospering business owner without correct accounts and records.
The next step is applying a system for keeping track of expenses and income. It’s absolutely vital for small-business proprietors to consider an accounting software like QuickBooks or Xero as their main software system for accounting. BooXkeeping supports a wide variety of software applications.
Here are just a handful of ways an outsourced bookkeeping company can help:
Keep essential information readily available. Creates reports that allow you to easily stay informed of your business’s most vital financial information, like loss and profit by property or product, sales reports, or expense reports, accounts receivable by customer.
Collect more of your accounts receivable. BooXkeeping can produce professional-looking invoices that can be sent via email and offer your clients the option to make their payments online. You can also produce statements and create various reports to regulate who your high-risk clients are for collection purposes.
Pay your business bills promptly. Track your accounts payable so you can manage your cash flow more accurately and pay bills when it’s most convenient for you.
Receive payments immediately. Take any merchant/credit card payments online, and have the funds received and recorded directly into your accounting file. You can upgrade your tech supplies to integrate a POS (point-of-sale) system with your cash register and merchant/credit card machine along with upgrading your accounting software.