Who’s In Trouble?
First of all, let’s get this out of the way. The whoop-whoop is for people getting refunds. The tax preparers, CPA on the other hand I say God speed. The fun part is when clients keep on calling asking about their refund.
As a business owner, are your books in order? Do you have accounting software or an excel spreadsheet to record your transactions or ‘you have the receipts’? One piece of advice I will give every small business owner is to invest in an accountant/bookkeeper or if you have time on your hands, get on youtube and learn some basic bookkeeping practices. If your revenue and expenses are not a lot, just add them up and send it to your tax preparer. Add the receipts so that he/she knows they are real transactions and you are not making it up.
Most people think that the only reason why a business needs good bookkeeping is for tax purposes. Noooo…. it is more than that. I have worked in QuickBooks more than any other software so I will use it as an example. Just click on reports and go to profit and loss to see how the business is doing in terms of money going in and out. It will surprise you with the decisions or changes you can make to help the growth trajectory of your business. Even with a simple excel spreadsheet, you can still do that. If you are planning on raising money in the future for your business, please keep good records. Don’t wait until a week to send the paperwork before looking for someone to ‘clean up your books.
Honestly, the hardest part of bookkeeping is doing ‘clean up’. This is because you have to clean up the mess before you can get the right outlook of the business. Please, don’t wait until April 1st(less time for S-corp etc) to look for bookkeeping. There is always the option of filing an extension.
Have a blessed and happy tax season!