Managing good business books isn’t something you should only do as a tax-saving strategy
It also gives you peace of mind, ensuring you haven’t mixed up funds or miscoded data entries that require a lot of reversal work or resolution by your accountant.
Here are four important reasons why maintaining a separate check book and sets of records for each of your business activities will go a long way toward making your life a little easier:
- Governance. Having a separate check book shows that you treat your business as its own distinct entity and reduces the risk of mixing personal and business funds.
- Tax strategy. Separate banking improves bookkeeping procedures, prevents missed payments and provides you with accurate records to improve your position at tax time.
- Audit protection. Having a separate check book improves your odds in an IRS audit. The IRS will often disallow a number of expenses if personal and business expenses are mixed together in a single check book.
- Quality decision-making.Having a separate check book starts the process of better bookkeeping, expense tracking and budgeting, which improves overall decision-making.
How can you be a successful business owner without accurate records?
When your books are out of order, you endure the constant stress of worrying about it. But having separate checking and bookkeeping for your business saves you time and money in the long run.
The next step is to implement a system for tracking income and expenses. And it’s critical for small-business owners to consider using QuickBooks as their primary accounting software system. You can read about all the inbuilt features of Quickbooks for small business here and keep in mind that Williams & Kunkel, CPAs, LLP are Certified QuickBooks Pro Advisors.
There are several options for getting your bookkeeping super organized.
Many business owners prefer the comfort and security of knowing they not only have highly skilled accountants doing their books, but the benefit of one-stop shopping for tax planning and quarterly and annual reports. The value of better long-term planning and a higher quality of books can far exceed the cost.
With our CPA office in Flower Mound, we can come to your business location and offer a free, confidential consultation to discuss the pros and cons of using QuickBooks in your business.