Many entrepreneur that do bookkeeping Orlando think that keeping your financial situation is a safer bet. This idea seems to have its perks, you don’t buy online software, no system dependency and , your brain is your plan maker. But these perks come with their own pitfalls, when it’s all just in your head there are absolutely no second opinions, no redundancies to check the system and no one to show you the signs of any upcoming disasters.
Keeping it written and working with recheck able data ensures that your finances are handled carefully, your cash flow is easy to review and smooth over and your control over seasonal disasters increases many folds. Bookkeeping Orlando practices also ensure longevity of your business and allow you to make achievable long term plans, and it does wonders with the IRS.
Entrepreneurs should keep a few things in mind while working their financial books. Firstly, always start with your major finances, and plan your budget around them, that way you will not miss on major business opportunities and expenses won’t lead to loans. Major yearly repairs and main yearly payments all come under this umbrella; while you are at it, include the seasonal ups and downs to these factsheets as well. Always prefer being safe over being sorry. Save your money in the flush months, in a savings account and utilize this money in the slower months when those costly repairs knock on your doors.
Use your bookkeeping Orlando to keep a very careful track of your daily expenses. A separate credit for business transaction can act as an accounting platform, these credit cards enlist all expenses and the data is always at your disposal. They categorically distribute the expenses as well, so prefer them over paying cash and save yourself the hassle of maintaining a lot of receipts. Note all hospitality expenses you have for your business in a diary or on your smart phone, this data will ease your tax records a great deal, in the IRS audit season. Rather than jotting down your mileage in a diary, use Google map to track your own movement and save the data in your record keeping, this data combined with a well maintained electronic day planner is enough for IRS.
Thirdly, keep a record of your deposits in the bank. Not all deposits are profits and knowing the history of every deposit will stop you from paying tax for monetary transaction that was not income.
Fourthly, take your tax returns seriously. Calculate all the tax that you are to pay and avoid unnecessary quarterly realties and penalties from IRS. Put money aside every month for tax payment and by the end of year, your tax payment will be easy to pay before due date.
Lastly, collect all your invoices in a separate folder to avoid letting unpaid bills hurt your cash flow. With careful consideration, managing finances is a simple and easy task. Best of luck to all the entrepreneurs out there!
If you need more information about our, Orlando 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.