bookkeeping

Spring Cleaning for your Bookkeeping: bookkeeping clean-up tips post-tax day.

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Bookkeeping clean up tips post-tax day.

For a lot of people, tax time is the absolute worst. But for small business owners, this period is when you can really get a lot of cleaning done. After months of bookkeeping work — invoicing, paying vendors and employees, etc — you’ll have stacks of paperwork to clean up! This can be overwhelming if you don’t know where to start. Well, here are some tips to help make spring cleaning for your bookkeeping easier.

 

Embrace being paperless

paperless small business bookkeepingIt’s the 21st century, get out of the 20th! So here’s a bookkeeping clean up tip that might not seem obvious but a lot of small businesses are still using papers for billings, checks, and proposals. Some small business owners think that it saves them more, but it’s the contrary. Sticking with literal paper when doing your business paperwork costs small business owners more time, and money, and increases the chances of financial data leaking out to unscrupulous individuals.

Most people think that going paperless means you have to get rid of all your papers and then scan them into some fancy technology system, but that’s incorrect. To go paperless, you just have to stop creating new papers, not eliminate existing ones. That can be done by simply switching to digital records instead of paper ones.

You may be thinking it’s easier just to keep on doing what you’re doing because it doesn’t seem like it takes that much time or effort for someone to pick up the phone, call the office supply store, and order more toner for the printer. But if you look deeper, you’ll see there are a lot of hidden costs associated with keeping physical copies of all your documents.

The cost of printer cartridges isn’t cheap, and that’s just one of the costs associated with printing everything out. You also need to consider the cost of space in your office, both in terms of square footage as well as energy use.

Once you switch your business over to being paperless, you will experience these benefits right away:

  • Reduction in office expenses
  • Efficiency is improved
  • Your financial documents are better secured

Going paperless also gives you the benefit of being able to access all of your documents at anytime and anywhere! A benefit you can get by acquiring cloud-based services for your business.

Credit card and Bank Statements

If you’ve already moved to online banking and credit card statement downloads, it’s easy to go a step further with electronic bank statements, check copies, and credit card statements.

E-statements are great for the environment and can make your financial life easier. They’re also free! And if you’re concerned about privacy or security, electronic documents are more secure than paper.

An added benefit of online banking is its ability to integrate with most paperless bookkeeping systems such as QuickBooks Online. It’s like hitting two birds with one stone!

Bills, Invoices, and Payroll

Sending bills and invoices to your clients or customers is one of the biggest paper muncher in your small business operation. Bills and invoices carry a lot of information with them, which requires a lot of paper for printing. Not to mention the paper envelope it’s enclosed in!

Aside from that, you still need to remit payments to your vendors. These payment remittances cost a lot when you think about it. The checkbook cost, mailing cost, stamp cost, and of course you also have to make several copies of the payment for good measure.

You can avoid all of the costs and hassle by transitioning to simple click payments or automated scheduled payments that are offered by online payment providers like Bill.com. Transitioning to this paperless method of paying your vendors is a great way to lower expenses and at the same time reduce your small business’ carbon footprint.

Your small business payroll is another area where you can go paperless to further decrease administrative costs! Timesheets, paychecks, and other incidental use of paper can be eliminated by using going digital!

Financial Reports and Spreadsheets

financial report sorting after tax dayBookkeeping clean up is easier if your business has embraced being paperless, you can start transitioning to a cloud-based bookkeeping system like QuickBooks Online! You will experience the benefits of switching to this new bookkeeping system immediately. Not only will cloud-based bookkeeping services cut your use of paper, but it also makes your life easier because most of these services have the capability of being integrated with your bank!

Cloud-based bookkeeping systems let you manage your entire bookkeeping operation wherever you are—at home, at the office, or on the road—giving you access to reports and key performance indicators (KPI’S) from your laptop or smartphone. You can pass control of your financial data to non-bookkeeping staff without compromising security or having to leave your briefcase behind.

 

Strat Talk, Strut Walk

Now that tax season is behind us, it’s a good time to step back and take a look at the long-term picture when it comes to your finances.

The process of managing your finances is more than just keeping track of your day-to-day gains and expenses—it’s as much about planning for the future as it is about looking back on the past.

In fact, we find that our clients who engage in strategic financial planning tend to benefit from having a clearer view of their priorities and goals than those who don’t.

So, what does strategic financial planning look like? There are many ways you can do this. You might hire a contract CFO to help you with a short-term project, such as helping you expand into new markets or creating succession plans for leaders who are transitioning into new roles. Or maybe you’ll want to set aside some time to simply discuss your goals with a professional.

For example, one way our clients have benefitted from strategic planning is by improving their cash flow forecasting. This allows them to manage their resources more effectively and plan for opportunities down the road.

 

Think Tech!

small business owner thinking about bookkeeping technologyAre you happy with the technology your business is currently using? It might be time to take a look at your small business’ tech setup.

If not, now is the time to start testing alternatives. Identify any shortcomings and plan ahead. I’ve seen plenty of questions crop up last-minute on social media from practitioners fed up with their current solutions, simply because they’re just not doing what they need them to do.

Once tax season kicks in, you’ll be running at full speed. Don’t let yourself get bogged down by inadequate tools and technologies.

Also consider other tools which could help you out even if you haven’t been using them yet – document-sharing solutions, or platforms that allow online submission of expenses and documents directly to you, for example. These could be a great win! You may also notice that some of your clients will need to make a few tweaks and/or updates to be in line with your technology stack.

 

 

Talk with your Bookkeeper

All of these bookkeeping clean up tips can be combined into one solution! Talk with your bookkeeper. They know a lot about your business, not only on the financial side but also on the operational side. They know this because they see your financial records in real-time. Bookkeepers know if your operational expenses are getting out of hand or if cash flow is on the negative. They can help you identify the areas that need improvement and provide suggestions that you can take.

Don’t have a bookkeeper yet? Don’t worry our experienced bookkeepers are always at the ready to help you out! Send us a message today and we’ll help you run your business smoother!

Get in touch with us today!

bookkeeping quote katy tx

Reasons why you need Bookkeeping Service for your Small Business

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cubes that spell out the reasons why you need bookkeeping service for your small business

A small business owner thinking about the reasons why she needs a bookkeeper for her small businessReasons why you need Bookkeeping Service for your Small Business

Small business owners have a lot on their plates. So, it can be easy to feel overwhelmed when you realize bookkeeping is another task on your list. However, there are a few reasons why every business owner should know a little bit about bookkeeping. Here we enumerate the reasons why you need a Bookkeeping Service for your Small Business.

You’ll have a better understanding of how your business is doing. If you’re not tracking your income and expenses, then you’ll have no idea if your company is profitable. But, if you’re keeping track of your day-to-day transactions, you’ll be able to get an idea of where your money is coming from and going to.

You’ll be able to handle taxes more easily. Once tax season comes around, you won’t have to stress about finding all of the receipts that prove how much money you made or spent throughout the year. Plus, having good records will help ensure that you don’t miss any deductions that could save you money at tax time.

Bookkeeping will help make budgeting easier. Having good records will help you understand where all of your money goes so that you can create a realistic budget that works for your company.

 

Bookkeeping is crucial for small business success

Bookkeeping service providers make it easy to track the money your company makes and spends. For example, if you have an online flower shop, you can use bookkeepers to track the sales of your flowers. You can also use them to track the cost of your supplies, like vases and bouquet holders. Bookkeeping services will also help you track expenses like rent and employee wages. If you want to know at a glance how much money you’re spending on each area of your business, bookkeepers are a great way to do that.

By keeping those records organized, bookkeepers make it easy for you to analyze the data they contain. If you notice that the amount you spend on rent is steadily rising from month to month, you’ll be able to take action immediately before it becomes a problem for your business. If you notice that the number of roses sold is decreasing steadily from year to year, it might be time for a change-up in strategy. The best thing about bookkeepers is that they give you more time and energy to grow your small business even more!

 

Ways Bookkeeping Services help Small Businesses

Now that you are aware of why bookkeeping is important for your small business, let’s take a look at the ways bookkeeping services can help you:

  1. Making financial decisions
  2. Organizes your records
  3. Provides accurate financial records
  4. Tax filing
  5. Budgeting
  6. Getting Investors/loans
  7. Saves you time

 

Making financial decisions

Bookkeeping Service for Small Business: Reason #1

Making Financial Decisions

Bookkeeping service for small businesses allows owners to get a clear picture of their finances.

You don’t have to be an expert in accounting or finance to maintain a basic understanding of your company’s financial records and draw insights from them. And as long as you have access to all the information you need, making decisions about your company’s future becomes less intimidating. You’ll be able to look at your financial data and determine if the decision you’re considering makes sense for your business.

Here are some small business financial decisions that bookkeeping service providers can help with:

  • Loan Applications
  • Employee Hiring
  • Grant Applications

The list goes on and on but the bottom line is that bookkeeping service providers can help you make informed decisions regarding your business. For example, you may be wondering whether your company is financially in a position to hire employees. A bookkeeping service provider can help you determine that by looking at the specific numbers and making sure they’re accurate.

 

Bookkeeping Service for Small Business: Reason #2

Organize your Records

Regardless of what’s going on in your company, the organization of your financial records is key. When the time comes to budget, apply for loans or grants, or see if you’re turning a profit, bookkeeping allows you to find the information you need quickly.

With bookkeeping, you have an organized system that enables you to record financial transactions as they happen. This means there are no outstanding expenses and you can track how much money is coming in and going out at any given time, which can help you be more proactive about where your money is going.

 

Bookkeeping Service for Small Business: Reason #3

Provides accurate financial records

The decisions you make in business are only as good as the information you have available. By having organized information, you can create accurate financial records. Those records allow you to perform a variety of tasks.

You can manage your investments and loans. You can analyze the profitability of your products or services and make adjustments for the better. You can manage your inventory and pay your bills on time. You can also review costs and expenses to stay within budget and use the data to plan for future growth.

Organized information is vital to the success of any business, whether you’re a one-person consulting firm or a large manufacturing plant.

 

reasons why your small business needs a bookkeeping service - tax filing

Bookkeeping Service for Small Business: Reason #4

Tax Filing

Taxes are a pain in the butt. And they’re even more of a pain if you own a business. But we’re here to help. And by help, we mean to give you one less thing to worry about as an entrepreneur.

If you’ve been manually filing your taxes (or if you’ve just been putting it off), we have some good news for you: setting up bookkeeping is the first step toward not only tax filing, but also getting paid faster and getting paid more.

We know what you’re thinking: “Uh, yeah, but bookkeeping sounds like a nightmare.” We get it! That’s why bookkeeping service providers make it easy for you to track expenses and income, send invoices, and pay your employees and contractors.

And if you’re going to work with an accountant on taxes? Great! Bookkeeping records are essential for that process too—which means less time spent sorting through papers and receipts, and more time doing what actually matters to your business.

 

Bookkeeping Service for Small Business: Reason #5

Budgeting

You know what they say: if you fail to plan, you plan to fail. When it comes to budgeting and financial planning for your small business, you need a clear picture of how your business is performing.

Without that picture, you’re shooting in the dark—and not only that, but you’re likely to run out of money and go under right when you were expecting a flourishing year. Ouch!

The best way to make sure that doesn’t happen is by having good books that you get by having a good bookkeeper. Period.

When your books are organized, accurate, and up-to-date, it’s much easier for you to review what happened in the past and make a plan for the future. You can see exactly how much money was coming in throughout the year, which lets you see what’s going on with your sales trends. You can see how much money was going out—and to whom—so you can tell if your suppliers increased their prices or if there are other cost-saving measures you could be implementing. When it’s time to create a budget for the next year, all of that information is readily available so you can work on accuracy instead of guessing whether or not your numbers make sense (or even add up).

 

Bookkeeping Service for Small Business: Reason #6

Getting Investors/Loans

Businesses need funding to succeed, and that can come from a variety of places: owner’s equity, grants, business loans, or investors. But when you’re looking for an investor to back your company, they need up-to-date information about your business in order to make a decision about whether or not they want to invest in you.

Bookkeeping records help potential investors see the success of your company. If you don’t have those records readily available, you won’t be able to get a clear picture of what’s going on with your business. Investors want to see your books! They want accurate and accessible information if they’re going to consider putting money into your venture.

If bookkeeping isn’t part of your business plan, it should be. Up-to-date bookkeeping records are essential to the success of any small business! Don’t let yourself miss out on an opportunity because you don’t have the data at your fingertips when it matters most!

 

Bookkeeping Service for Small Business: Reason #7

Bookkeeping Service saves you time

Bookkeeping is an essential part of business, but that doesn’t mean it has to be painful. If you’re feeling stressed out by the tedium of keeping track of your company’s finances and want to find a way to create more balance in your life, consider hiring a professional bookkeeper.

It’s easy to assume that you should keep your recordkeeping in-house to maintain control over the process, but it takes time and attention away from other aspects of your business. Hiring a professional bookkeeper means that someone else will take care of all those boring details for you. They’ll make sure it’s all done accurately, so you can spend more time focusing on what matters most to you.

You don’t have to do everything yourself! Getting some help with your bookkeeping will bring peace to your life and balance back into your workweek.

Are you ready to grow your business further by focusing on driving its growth instead of the books? Well then send us a message today!

Let our experienced bookkeepers manage your bookkeeping for you!

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Top 5 New Year Tax Resolution

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New year tax resolution

Top 5 New Year Tax Resolution

Every year we make a list of resolutions that we promise ourselves that we will do or not do to better ourselves. But not everyone knows that you should also make a new year tax resolution list so that your life gets easier come Tax Day!

Here are the top 5 new year tax resolutions that you can do to make your life easier when Tax Day arrives:

 

1. Update your bookkeeping practices

From a business point of view, bookkeeping helps you know whether you’re making money and provides key information to help you take action–such as adjusting prices, cutting expenses, or raising money.

To ensure that your business receives all the deductions and tax credits to which it’s entitled in 2021, you’ll need to keep good records. Often business owners fail to pay attention to this detail until it’s too late and the IRS is questioning deductions claimed on a return.

To meet tax law requirements and ensure compliance with related laws, you should establish and follow a bookkeeping system. You can use software that can help you with bookkeeping, such as those for tracking business travel and entertainment expenses.

 

2. Take note of your odometer

You can deduct the cost of business driving only if you have the records to back this up. That means noting your odometer reading at the start of the year, and then tracking your business trips regularly.

Consider using an app for tracking mileage. Some are free, and others cost a modest amount.

 

3. Spend Wisely

To save money on the tax bill this year, consider spending money you’ve saved for other things on dependent care or medical expenses, which can in turn reduce your tax bill. Many employers offer this benefit.

Flexible spending plans allow you to use pre-tax dollars for dependent care, medical expenses, and health insurance. Employers deduct pre-determined amounts from paychecks and place the funds in an administered account that releases the funds when the expenses are incurred. And since contributing to a flexible spending account lowers your gross income, it keeps more money in your wallet.

 

4. Pay Close attention to Crypto transactions

For the past few years, buying, holding, and selling crypto didn’t need to come with a bunch of paperwork and documentation. However, the IRS started cracking down on unreported crypto transactions that result in profits or losses. It would be best if you are able to properly document the necessary details every time you buy or sell crypto by using software developed for the main purpose of recording crypto transactions for tax reporting purposes.

 

5. Work closely with your tax professional

Many prefer to do their taxes themselves, but these people only work on their taxes once a year. Compare that to tax professionals that are certified and experienced to do taxes for everyone, every year. Work closely with your tax professional to get yourself the latest news and updates related to your specific tax situation.

Your tax professional is here to help you make sure that your tax reporting is fully compliant with the ever-changing rules and policies surrounding taxes.

 

Bottomline

Taxes are here to stay and everyone must do it every year. It is up to you if you prefer to sprint at the last minute to get everything done for your tax reporting or if you prefer to have your peace of mind when Tax Day comes. These new year’s tax resolutions can go a long way if you start at it while the year is just getting started. If you are not sure that these new year tax resolutions will fit your special tax situation, you can always get in touch with our experienced Enrolled Agent to help you with your tax planning for this year!

Get in touch with us!

 

Reinventing your business during a crisis

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Reinventing business meeting

Reinventing your business during a crisis

Even if your resources are limited, you may emerge stronger and better to rebuild your business during a crisis and propel it ahead.

Reinvention occurs on a regular basis. Many firms are reinventing their business during a crisis to reflect current consumer trends, while others are undergoing complete transformations, from the way they operate to how they service customers. The reality of our environment is that change forces us to reinvent and transform ourselves on a regular basis. If you choose to remain stationary, you risk losing your significance.

But what if we’re in the midst of an economic crisis? Isn’t it impossible to alter a firm at such a risky time? Organizations are at a fork in the road due to significant resource restrictions. On the one hand, they are aware that the longer they remain stationary, the worse things will become for their company. On the other hand, despite it putting a drain on resources, reinventing your organization is the only way to ensure its survival.

How a business reinvents itself during a crisis is critical, as it determines whether it will be able to weather the current storm and survive. This is why reinventing your business and transforming your people are so important. Although transformation is not an overnight process, it must begin at some point, and now is the moment to do so.

 

Here are some tips to help you reinvent your business:

1. Everything stems from the people, the business’s beating heart.

The first step is to determine where your people stand in relation to the current problem. Everyone reacts to change in their own unique way. Keep in mind that other elements such as the existing manner of working, the organization’s processes, and, of course, personal events might have an impact on your employees.

At this juncture, your employees’ mindsets, resilience, learning, and agility are critical. These characteristics constitute the cornerstone of development, and while some are innate, they may be cultivated in everyone. We will be doomed to fail if we do not build these foundations. While agility and resilience are important, encouraging people to learn helps them stay alert and prepared to face new difficulties. So take this in mind when you are facing a crisis where you need to reinvent your business.

 

2. Examine your company’s current state in regard to its clients.

At this point, a good question to consider is: Are my products and services meeting my customers’ changing needs? While the answer may be “no” for some, even those who say “yes” may face difficulties. This is because, in a crisis, people’s behavior — and, with it, their consumption behavior — alters, as we’ve witnessed during the ongoing Covid pandemic. You might need to consider changing your products or service when you reinvent your business during a crisis.

 

3. Define focus with insights from employees and clients.

There are numerous strategies to reinvent your business during a crisis in order to retain your employees and meet customer demands. Adjusting the business model, switching to alternative products, or changing the way you serve consumers are all examples of this. This is a critical initial step in the process of revamping your company.

However, we cannot really attain everything we desire for our businesses. We need to refocus on a few focus points and accomplish them well while resources are tight.

 

4. Set short- and long-term objectives.

We can define the goals after we’ve defined our focus. The most effective means to track our progress toward those goals. When reinventing your business during a crisis, the most important goal is to get out of it as quickly as possible. Long-term goals, on the other hand, are critical for the business’s long-term viability.

It is also critical to design and implement a recovery plan at this time. This should include a strategy and specific actions for resuming operations as quickly as possible. The situation will not persist indefinitely. When it’s over, businesses must be prepared to ensure that the competition does not gain the upper hand.

Take all of the lessons acquired from the crisis as well. Apply what you’ve learned to your company’s future strategy and culture. Today, for example, must be the first day of embracing agility as a key component of its culture.

 

5. Finally, and most critically, reallocate resources to maximize efficiency.

While it’s admirable to want to seek out fresh chances and seize them, this may not be feasible. This is owing to the fact that you are working with restricted resources as a result of the crisis. You must also reinvent your people to focus on the goals at hand, a process known as reorganization.

Change is difficult for everyone, let alone an business with a large number of people to manage. Change, on the other hand, provides us with the opportunity to pursue something even greater and better than before.

A crisis can be destructive, but it cannot last indefinitely. The most essential thing is to make sure you’re ready to bounce back stronger and better than before when the crisis passes.

 

Conclusion

One way you can reinvent your business is to reduce employee overhead by outsourcing the highly technical aspect of your business -like bookkeeping- to industry professionals. Doing so helps you get far more control of your business finances and it helps you see a clearer picture of your business’ financial health. Lucky for you FAS is in the business of helping small businesses! Send us a message and we’ll discuss how we can help you see your business’ financial health clearer.

 

Get in touch with us now!

 

Blockchain Bookkeeping on the Rise!: Here are 3 industry pioneers

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Blockchain Bookkeeping 
Disclaimer: FAS Bookkeeping and Tax Services is providing this article as a public educational piece. 
Reference to any specific product or entity does not constitute an endorsement or recommendation by FAS Bookkeeping and Tax Services. 
FAS Bookkeeping and Tax Services will not be held liable for any damages incurred by using the specific products mentioned in the article.

Blockchain Bookkeeping on the Rise!

Coupled with the continued rise in popularity of cryptocurrencies and the regulators’ rush to monitor cryptocurrencies. Companies that waged their bets on cryptocurrencies are now out and about to ensure that they are fully compliant with the policies and guidelines set by regulating bodies. These companies are expected to capitalize on Blockchain Bookkeeping to ensure that they are compliant with the rules and regulations set by the legal bodies. Since cryptocurrency price action is extremely volatile, the current bookkeeping and accounting software available in the market is not up to the task.

Companies specialized in bookkeeping and accounting software now aim to automate the process for crypto record-keeping.

Here are 3 fledgling companies that are spearheading the rise of Blockchain Bookkeeping:

 

  1. Softledger

    First on the list is Softledger, their products span from Accounts Payable, Accounts Receivables, Cash Management, General ledger, down to Manufacturing and Inventory. Their well-rounded products and APIs are adaptive and scalable. Thanks to the ingenious design of their platform that is native to the cloud, their APIs are quick to integrate and seamless to implement with your business.

    Their accounting technology frameworks aim to completely eliminate the need for manual processes. Their full suite of products allows data to flow through the organization like a stream of water. Access is available whenever and wherever it is needed in the business.

    Softledger also has this neat feature that allows you to get real-time visibility into gains, losses, and asset balances. A neat feature that lets you build reports for entities, regulators, and stakeholders.

  2. Cryptio

    With Cryptio you can sync your wallets’ public addresses, custody, and exchange accounts into their proprietary software. This way you can get a glance at your full transaction history without missing a single transaction. Their software is also fully compliant with crypto-to-fiat valuation systems that most regulators require.

    On the bookkeeping side of things. Cryptio lets you auto-classify your transactions, reconcile transactions and invoices. A nice feature if you are looking for software that lets you do most of the bookkeeping actions that you are familiar with. Cryptio also has an export and integration feature for your data. This is great if you don’t want to switch between two accounting systems for your fiat and crypto. Access to additional reports like capital gains reports and portfolio performance is also an added feature of Cryptio.

  3. PeaCount

    The software utilizes artificial intelligence to help users identify transactions as they are entered and to manage daily bank reconciliations, while it capitalizes on the use of blockchain to secure client data and prevent data breaches through the use of a ‘Blockchain of Identity” concept. According to Stranger, business owners will no longer need a dual-entry system with manual reconciliations. Combined with machine learning, PeaCounts has developed a system that makes manual entry a thing of the past.

    PeaCounts says that the service will work with a user’s current bookkeeper and tax professional to get data entered appropriately. The service will also include a feature that lets users book appointments with them directly through the solution’s dashboard and mobile app.

    In addition, PeaCounts’ ‘Smart CFO’ feature can prepare budgets and other financial plans and projections instantaneously so that users without any financial or accounting background won’t be left in the dark as to where they stand financially. PeaCount’s future development roadmap also includes a payment system powered by a cryptocurrency token, PEA. This token, just like any other cryptocurrency will open up for low-cost and near-instant payments to vendors and employees wherever they are in the globe.

 

Bookkeeping can be an arduous task for most business owners, but that shouldn’t always be the case! If you want to relieve yourself from the labors of bookkeeping, all you have to do is send us a message and we’ll help you make your business succeed!

Get in touch with us now!

Disclaimer: FAS Bookkeeping and Tax Services is providing this article as a public educational piece. Reference to any specific product or entity does not constitute an endorsement 
or recommendation by FAS Bookkeeping and Tax Services. FAS Bookkeeping and Tax Services will not be held liable for any damages incurred by using the specific products 
mentioned in the article.

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