As a virtual accountant this is obviously a topic that is near and dear to my heart – business record keeping. Whether you’re a first time entrepreneur or a long-time business owner, there is no time like the present to set up systems for keeping track of income and expenses for your business for 2015.

bookkeepingWhat do I recommend? Here are a few steps you should take to stay organized and set up systems:

  1. Make file folders (either virtual or paper) and label them with names that make sense for your business. Be sure all of your important papers make it into these folders; it will make year-end gathering of your papers for your accountant much easier.
  2. Now that you’ve made file folders, use them. Since we are paperless, we file documents and emails immediately. It makes it so much easier than going back looking for them later.
  3. If you’re working with contractors, get the W9s when you engage them – before you pay them. They’re very cooperative then. If you wait until year end, you might not be able to find them or get the documentation you need.
  4. If you use your personal vehicle for business, keep a mileage log. Note number of miles for each business trip and the purpose of the trip. Note: the reimbursement rate for 2015 is 57.5 cents per mile, so it pays to keep track.
  5. Find an accountant or bookkeeper you can work with throughout the year to keep your business on track and make sure you’re properly handling transactions to set you up in the best position for tax time.
  6. Keep track of your key indicators. Is your profit level where it should be? Are your cost of goods sold or cost of services in line for your industry? Are you charging enough for your goods or services or are spending too much on services you use? You don’t want to wait until the end of the year to find this out! It’s better to make a course correction earlier rather than later.

If you need help and advice on your accounting needs, give our office a call at 480-219-4285!

About the Author

Leave a Reply

Your email address will not be published. Required fields are marked *