Thorough bookkeeping allows you to keep track of your finances so that you can make smart investment decisions. It also helps you to avoid mistakes during tax time. While it might seem tedious to set aside time each day and at the end of the week to go over your books, it is the cornerstone of your small business. If you haven’t already, implement these tips to keep your finances in order. 

What Are Some Helpful Bookkeeping Tricks?

1. Create a Separate Banking Account

Having a business savings account that is separate from your personal one makes it easier to see at a glance how money is being accumulated and spent. Additionally, clients will feel more comfortable writing checks to your business than to you as an individual. Lastly, dividing your funds will make life easier for your tax preparer—who would otherwise have to comb through both your personal and business transactions, trying to figure out which is which in order to report your profits accurately and find potential deductions. 

2. Start a Tax-Only Savings Account

As a small business, you are required to pay quarterly estimated taxes. Most financial experts recommend setting aside 30 cents from every dollar you make to cover these payments. Open a special savings account for these funds and transfer money to it after receiving payment from your clients, ideally before paying yourself or spending funds for business improvements. 

3. Keep Thorough Records

When a financial hiccup arises, companies with a detailed history of their finances are much more likely to discover what went wrong than ones that didn't save invoices and receipts. For the best results, keep digital and paper records of all transactions so that there is always a backup. Develop organizational strategies, like dividing up incoming and outgoing income and placing them in alphabetical files, to easily track down information the moment you need it. 

When you need help keeping track of your finances, turn to Burch & Associates, located in Lincoln, NE. They offer discreet and customized accounting solutions, including bookkeeping, payroll services, year-round tax planning, and audit representation. Their team of accountants and tax experts continually updates their training and necessary certifications to provide you with quality advice and consultations. Visit their website to learn more about their services. Call (402) 483-4791 for an obligation-free chat.