Are you one of the many small business owners who have not done his or her bookkeeping all year? If so, this tax season will unfortunately be a stressful time as you frantically scramble to pull together all your receipts, business expenses and trying to account for every single thing you did in 2018.
To help you through this period, here are three things you should do before you turn your books over to your tax preparer:
As we move into the last month of 2018 it’s time to start thinking about 2019. There is still plenty of time left before 2018 wraps up, but planning ahead is the key to ending the year right. To that end, here is some tips to help you tie up any loose ends and get a running start as we head into the New Year.
Do you need your small business bookkeeping cleaned up? Don’t worry I get it. You fell behind on your books. It happens to many small business owners especially when they are just starting out. After all, what is more important in business than making sales, right? However, at some point, you need to just get that bookkeeping mess cleaned up and caught up. And you want to make sure you never face this situation again.
Far too many business owners make financial decisions based on their bank account balance. But that figure is constantly in flux. It only represents the funds you have at that moment but not the funds that will soon enter and exit your bank account as you pay your expenses and revenue is received. Instead you should base your decisions on your business’s cash flow – the figure that accounts for the funds you have at the moment, in addition to the funds you will eventually pay and receive.
Bills are easy to handle since it’s up to you as the business owner to pay them before their due dates. But in order to have the necessary funds to pay your expenses, you need your clients to settle their invoices in a reasonable time frame. Collecting your revenue in an efficient and timely manner is the key to maintaining a healthy cash flow.
Here are five tips for getting your invoices paid faster and keeping your cash flow strong: