My 5 Best Year-End Tips

The end of the year is coming faster than we know it! It’s also the time of the year when some people realize they’re not nearly as on-track as they thought they were. So, today I’m posting 5 tips to help you keep your bookkeeping on track. Use these tips to keep you on track throughout the year or if you need to work to clean up your current year:

Tip 1: Keep Those Receipts!

Why: I know the scenario: you’re in a hurry, you have a call coming in, the kids are with you, you’ve got five thousand things on your mind, and your receipt for office supplies ends up crinkled up at the bottom of your car or purse. It happens. But, if you want to utilize the possible tax reductions from your purchase, the IRS is going to want your receipt.
You can make this process a lot simpler. Utilize emailed receipts whenever possible. That way it goes straight to your inbox. You can also snap a picture on your phone to keep or upload to one of the many apps out there. We know you have it with you, so put it to good use and keep that record!

Tip 2: Keep your business expenses separate from your personal Expenses:

Why: Mixing business and pleasure is usually a bad idea. This should also apply to your
finances. It may be easier and even tempting to just pull out the same credit card for all of your purchases, or to just buy everything in the same order. But, doing this will make bookkeeping and figuring out tax deductions a nightmare. Save yourself a lot of stress in the long run and use that separate card.

Tip 3: Plastic, not paper.

Why: We’ve already talked about keeping your receipts, and this one kind of goes along with that. Using cash makes it harder to hold on to that elusive receipt. Since there is no paper trail with cash, it’s much harder to track write-offs and deductions. Using a debit or credit card creates a record and makes tracking expenses much easier.

Tip 4: Find the bookkeeping software that’s right for you.

Why: You may be trying to track your whole business on a spreadsheet. Sure, it might sound easy, but it can get confusing very quickly (think reconciliations, profit reporting, etc.). Finding a software that helps you keep accounts straight, track expenses and sales, and store receipts can save you a world of headaches. Many programs even have mobile versions, so you can do your bookkeeping on the go. It doesn’t eve have to be a super expensive program. Do some research and find one that suits you and your business the best.

Tip 5: Don’t forget the Taxman

Why: You might feel like you’re rolling in the dough, but if you forgot to budget for taxes, you could be in a world of hurt. You don’t have to be caught off-guard, though. Make sure you are setting aside money throughout the year to go toward your business’ taxes. That way, you’re not shocked when the tax bill comes due and you’re not prepared for it.

I hope these tips are helpful to you. Be sure to follow me for future tips and tricks and other anecdotes about the financial world.

Keep going strong and don’t give up. You’ve got this!