As an accounting firm in Orlando FL, we always advise our clients that accounting is an integral part of any business. Keeping your accounts up-to-date and organized is not an option but a necessity for all businesses, whether big or small. Mistakes in bookkeeping can adversely affect your business transactions. An innocent mistake from your end can be seen as an attempt to evade taxes, and can therefore result in significant fines. Large corporations are somewhat immune to these kinds of mistakes because they usually hire professional accountants in Orlando to look after their finances, however small business cannot afford to make any such mistakes.
You should take your accounts seriously from day one. Many small business owners make the mistake of ignoring their accounts completely or think that basic bookkeeping would suffice. However, this is a completely wrong approach. It is imperative for every business, regardless of the size, to pay attention to their accounts from the day that they start trading. Following are a few easy tips that you can follow in order to easily handle your accounts:
- Keeping the invoices and receipts of your clients is just not enough. You need to come up with a system to keep track of all the transactions that take place in your business. This will not only help you monitor the inflow and outflow of cash, but it will also help you generate reports about your finances whenever you need them.
- The first thing that you need to do as soon as you start your business is to open a separate account for it. A common mistake that most owners make is that they use the same account for their personal and business use. This will make it extremely difficult for you to do reconciliation. This means to check if your account has the same amount of money as your bookkeeping or not.
- Reconcile your accounts and books regularly. Make a habit of doing it weekly or monthly. This way, you can check and rectify any discrepancy that you might find in the reconciliation statement.
Doing bank reconciliations just before you have to file your tax returns can get very difficult because it will be impossible to find ten month old receipts to check and correct a transaction.
- Keeping your books straight and regularly producing cash flow statements will not only help you in tax return at the end of the year, but it will also help you in keeping track of your money. It will be easy for you to gauge where you are spending more than necessary and how to control unnecessary expenditures. It will also help you predict your profits and losses so that you can take business decisions accordingly.
- Make sure that you find out if you are entitled to any tax credits. Many small businesses are not aware that there are certain tax credits that they can avail. Make sure that you properly research to make sure that you are not paying more tax than necessary. For this, you can take help from an accountant in Orlando who can tell you all about the tax credits that you can avail.
Following theses simple tips will help you get a good start in your business and handle your accounts easily. There are accounting firms in Orlando that can help you maintain your accounts and offer services at rates that you can afford.
If you need more information about our accounting and tax services, please contact us at 407-344-1012. Freedomtax Accounting’s staff has been providing honest accounting services and tax services for 15 years. Our Orlando accounting and tax firm has its main offices in Kissimmee, FL. Our services are provided nationwide, but mainly in the Central Florida market to areas like Orlando, South Orlando, Kissimmee, St. Cloud, Poinciana, and Hunters Creek, FL. Our tax accountants and IRS enrolled agents (irs ea) specialize in corporate accounting and bookkeeping, tax services, tax preparation, back taxes help, tax debt relief, tax resolution, tax planning, itin numbers, incorporations, and non profit 501c3 tax exempt status applications.