Bookkeeping File Evaluation
Your business operations depend on your ability to know where you are and where you are going. That means that you need a solid record keeping system and perhaps some professional bookkeeping assistance to ensure you are on the right track. Performing a bookkeeping file evaluation so you can evaluate your bookkeeping activity will help guide you to a more efficient and more successful future.
Evaluating Bookkeeping Files
Whether you keep paper or electronic files, you’ll need to determine whether they are providing the information you need in the most efficient way. These files may include bank statements, payroll records, invoices, and payment records. In evaluating these files, review some of the outstanding invoices. Are they past due? Do you have a method of tracking what’s owed? In fact, do you have work that still needs to be invoiced?
Your bookkeeping file system should enable you to know the status of your finances at a glance. If you are searching through piles of paper or even folders on your computer to find what you need, you should evaluate your bookkeeping needs further. You may need a professional bookkeeper to help you get organized so your business can become more efficient and more profitable.
Tracking and Analyzing
While it’s critical to have your records easily accessible, another important aspect of bookkeeping is analyzing the data in those records. In evaluating your bookkeeping system, you will also need to consider your ability to make long-term projections based on your current numbers. A good bookkeeper can help you plan for the future of your business, while also diagnosing your financial health in the moment.
Why Quality Bookkeeping is Important
There are many reasons for keeping quality, accurate records for your small business. You may have certain regulations for your particular type of business that require regular reports to be submitted. In addition, all small businesses should evaluate their bookkeeping to make sure it provides the data needed for detailed tracking of customers and transactions, legal compliance, tax preparation requirements, and planning for the future of the business.
When evaluating your bookkeeping, ask if it enables you to track your sales, customers, and inventory in detail. If it does not, you may lose sight of important business details. Knowing as much as you can about your customers will improve your ability to provide the highest level of service, which in turn will make them happier customers too! If your records show you who they are, what their preferences are, and their transaction records in detail, you’ll have the data you need to stay informed and stay ahead of your competition.
Ready for Tax Season?
Evaluate your bookkeeping files now to get ready for tax filing season. Having all of your information current and accurate will make tax preparation that much more efficient. A professional bookkeeping and accounting firm can also review your files to determine where you can save money at tax time. Payroll records will also need to be up-to-date and accurate, for filing the appropriate payroll taxes. When your bookkeeping system is well-maintained and your files are easily accessed, you will be better able to keep up with the tax reporting requirements for your business and you may even save some money.
Business Planning Needs
Evaluating your bookkeeping files and system now will help you plan for a more successful future. When you know how much inventory you have on hand, how much you’ll need to purchase over a certain period of time, and whether you have seasonal cycles in your business, you can more effectively plan for expenses and income over a period of time. Your data should be available quickly and easily, so you can plan appropriately for business growth.
CONTACT CLEAR VIEW BUSINESS SOLUTIONS FOR HELP WITH YOUR BOOKKEEPING NEEDS
At Clear View Business Solutions, we work with you on many aspects of bookkeeping for your small business, including QuickBooks set-up, accounts payable and receivable, inventory tracking and control, payroll tax management, and many other aspects of maintaining your business’s financial health.
We are a highly professional Tucson accounting firm focused on strengthening your understanding of your income and expenses through accurate financial records so you can become a better business owner. Contact Clear View Business Solutions to learn more about how our accounting services can help you and your business become more successful. Give us a call at (520) 544-0177.