Bookkeeping Tips

Bookkeeping Tips

When it's tax season, many small business owners are scrambling to pull together their financials because for most, bookkeeping is not their favourite task. But adopting some good habits early can help you avoid costly errors when it comes to record keeping.

Padgett Business Services are the accountants that small businesses rely on throughout Airdrie and Northwest Calgary. By helping you balance income with expenditures, Padgett Business Services will make it possible for you to make informed decisions about the future of your company, along with providing:

  • Tax preparation and filing services;
  • Bookkeeping and administrative accounting tools;
  • Payroll services through Paytrak; and
  • Software solutions;

Smart business owners understand that careful financial record keeping is the key to success and that when you don’t have a system or processes in place, unpleasant surprises can pop-up, goals can be missed and important paperwork forgotten. To help you make and keep long-term goals, optimize your cash flow, improve your profits, and stay out of trouble with the Canada Revenue Agency, here are a few tips for small business bookkeeping:
  • The first thing you need to do is have a plan, and write it down – like your business plan. Forecast for major equipment upgrades, seasonal ups and downs, and how they will affect your business. Then follow through by setting aside a 15 minute window on your calendar once a week to organize your finances, and do not let anything get in the way of it.
  • Expenses or payables are just as important to track as income, and if not tracked properly, you may be missing tax write-offs that benefit you – and spending more in late payment interest. 
  • Receivables, or income, if not recorded properly, it could take months before you realize that you have outstanding invoices owed to you. Make a plan for if clients are 30, 60 and 90 days late. Remember, every late payment is an interest-free loan that hurts your cash flow.
  • Taxes are payable at the same time every year so systematically put money aside each month, or each time a contract is paid, so the money is there when you need it.
  • Finally, and most importantly, keep your personal and business accounts separate from each other to simplify your bookkeeping process and track of your deductible expenses all in one place.

If bookkeeping still seems a bit complex, remember bookkeeping and accounting firms are valuable assets to small businesses because of their intimate knowledge of the profession, especially during tax season. Bookkeepers and accountants are invaluable, finding deductions and keep your business penalty free, while offering key financial advice. There’s nothing wrong with doing the work yourself, but it is always a good idea to have an accountant look over your file.

Like your company, Padgett Business Services is locally owned. As small business owners ourselves, we understand the difficulties you may face as you put your finances in order. We want to smooth those difficulties and work with you to eliminate any financial obstacles that may interfere with your business. Together, we can answer any questions you may have and help your business grow, while complying with government laws and regulations. Call Padgett Business Services at 403-948-7759 today.

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