When you have a small business and need to have the books kept, you can use a small business accountant service to do a lot of the heavy work. The accountant can also show you how to keep things in line on a daily basis so that record keeping is easier. It can be helpful to know as much as you can about bookkeeping even if you have an accountant handling it. You may want to find a good bookkeeping and accounting book to learn from about bookkeeping and taxes. There are also countless helpful bookkeeping articles that can teach you some of the finer points of bookkeeping.
You can also go through an online course that helps you to understand many of the principles. Some of these have worksheets and bookkeeping basics worksheet answers so that you can test yourself on some of the material. Talking to your accountant about the major points of bookkeeping can also be helpful. Having a basic understanding of bookkeeping is important so that you know your accountant is doing a good job and so that nothing is forgotten. It can be highly detrimental if something was forgotten and you end up owing too much in taxes.
Keeping tabs on your finances can seem like a daunting task. With your check immediately going to pay bills or buy groceries, it may seem impossible to keep track of everything. But there are numerous options to make bookkeeping easier. An accountant or tax preparer can help, for example, or you could start on your own by simply writing down what you get paid and subtracting everything you pay out. That way, you’ll be able to see where your money is going when. There are a few big reasons that bookkeeping is important, so read on for some inspiration!
Tax Preparation
Getting your taxes together can be difficult even when you do have your finances in order. Don’t make it harder for yourself and/or whoever is putting your tax forms together by not keeping track of your money. Every year, Americans pay about $140 billion in taxes. At tax time, 54% of people believe that they’ll get a refund, while 24% say they’ll owe money. Of those who owe money, however, 40% say that they aren’t prepared to pay those taxes back. Keeping finances in order will prevent surprises and allow you to prepare for something like fees.
Cash Flow Analysis
If you always seem to be short at the end of a month, or you constantly find yourself grasping at straws when your partner asks where your money is going, cash flow analysis can help. But in order to do that, you have to start writing down what you make versus what you spend. Yes, that means writing down every $3 cup of coffee, or $2 pack of gum. This will allow you to see exactly what your money is being spent on, and with additional budgeting assistance, you can cut back on unnecessary expenses.
Savings
Even if someone is only in their early 20s, it’s a good idea to start saving money. A good rule of thumb is to never have less than six months’ pay saved up. This will save you from going into debt over an expensive car repair, or a big issue in your home needing to be fixed. It will give you peace of mind. Even if you can only save a little bit now, it will add up over time. Keep track of your finances and put away every penny you can.
How do you keep tabs on your finances? Do you agree that it’s important?
