Nibletz Staff
Being in control of your finances and accounts is a critical part of being a business owner. However, so many new startups get things wrong. It might be that they make mistakes – and draw attention from the IRS. But it also might be because they are overcome with fear of doing something wrong, and don’t claim taxes back on the things they should. As you can see, there is a delicate balance to strike. But there are also a few guidelines that can help you run better books, and save you time and money at the same time. Let’s take a closer look.
Use an accountant
Want to know the biggest – and the best – secret of accurate, tax-efficient bookkeeping? Just hire an accountant. Many startups avoid doing so, just to save a little money. But hiring an accounting expert is not a cost – it’s an investment. The amount of money they will save you will far outweigh that which they charge. Get in touch with a nearby firm, and ask them if they have experience in your industry. Find the right company, and it will save you an awful lot of money. And, of course, the time it takes you away from your critical business activities.
Use software
If you don’t want to use an accountant, try some software. There are plenty of options out there, which will help you keep your books in perfect condition, and IRS investigation-proof. Bear in mind that it can take some time to learn how to use your preferred software, and you might still need a bookkeeper on board. However, with software, they should be able to complete their work faster, meaning a smaller monthly charge.
Open a business bank account
When you are a startup, setting up a business account is likely to be one of the last things on your mind. It’s far easier to use your personal account, after all. Or is it? Well, at first, it might do, but when it comes to doing your taxes, it can end up being a nightmare. It is essential, then, to separate your business and personal accounts. Your accountant or bookkeeper will love you, and so will the IRS should they ever come knocking.
Receipt solutions
Receipts can be the bane of every business. You buy something with company cash, and when tax filing day comes around, you can’t find it anywhere. So, instead of using the traditional method of filing your receipts, why not take pictures of them? You can use apps like Evernote to take photos, and file away, safely, on the cloud. It’s simple, easy, and you should never have a problem tracking your receipts.
Track your mileage automatically
Finally, how much time do you waste tracking your business mileage? And why are you still entering details into your accounts when you can use a tracking app to do it for you? There are plenty of applications out there, so take a look at what you can find and get started as soon as possible. It should save you a significant amount of time.
Hope this has helped – feel free to leave some of your suggestions in the comments!
