As a business owner, you know that bookkeeping can make or break you. It is essential that you stay on top of it. More importantly, it is vital that you have “clean books.” Keeping your books clean and organized is going to benefit the growth of your business in a number of ways. It may seem as though the extra effort in organizing your bookkeeping can seem menial and daunting, it can pay off big when it comes to making decisions for growth, tax planning and other important aspects of running your business. Mark Dicus & Company is here to talk about what it means to have “clean books,” and share some tips to help you keep your books clean moving forward.
What it Means to Have “Clean Books”
In short, having clean books for your business means that they are organized, up to date, and accurate. This helps you understand the financial health of your business so that you are able to make informed decisions with confidence. When you have clean books, you can easily identify areas where you need to make adjustments and see what structure seems to be working well for the company. Having clean books can also help you see the information you need to determine where to allocate the company’s resources as efficiently as possible too. When your books are clean, business is much smoother.
Steps to Achieve Clean Books
Clean books aren’t going to happen all on their own. It is going to take some work. Here are some tips to help you keep clean books:
– Reconcile: As a business owner, there are bank accounts and business credit cards that need to be reconciled. This helps ensure you aren’t overstating and gives you a clearer picture of your funds.
– Adjustments: You may find that there are some stale items on your books or inaccuracies that need to be fixed and adjusted. This could include things like uncleared checks and uncollectible receivables.
– Separate Personal & Business: It is tempting to use some of your personal funds as a business owner, especially in the beginning. However, it is important for bookkeeping and tax purposes that your business and personal accounts are completely separated from one another.
– Keep Receipts: You need to have receipts for all of your business expenses so that you have the ability to deduct them appropriately on your taxes.
– Verify Inventory: Taking inventory is important as a business owner. It helps ensure you aren’t counting assets that you don’t have. All of this information will be on the balance sheet.
– Close Your Books: When all is said and done, and the accounting adjustments have been made, your books need to be closed out for the year. This gives you your final numbers for taxes and financial purposes.
Bookkeepers, Accountants & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you are having a difficult time staying on top of bookkeeping and accounting, call on Mark Dicus & Company to help you with any accounting needs you may have.