I can’t believe how quickly this year is going by. Not only are about a week away from the April 15
th tax filing deadline, but we just ended the first fiscal quarter of 2014. If you’re a business owner who does your own books or have a bookkeeper keeping track of yours, then you should be reviewing your numbers. Is your bookkeeper keeping track of your monthly bookkeeping? He or she should be and here’s why:
KEEPING ACCURATE RECORDS – I cannot stress enough the importance of keeping up with your company’s books. By the end of every month, you or your bookkeeper should be done sending out invoices, paying bills and reconciling your bank accounts and credit cards. Keeping accurate records results in a healthy business with good cash flow.
CASH FLOW IMPACT – If your bookkeeper is slack on the books, this will negatively impact your cash flow. For example, if clients are not being billed timely, cash flow suffers because employee payroll is getting paid, but the clients are not paying the company.
KNOW YOUR NUMBERS – Are you putting the cart before the horse and trying to make important business decisions without really knowing your numbers? If you or your bookkeeper don’t reconcile your books monthly or even quarterly, then how can you accurately make purchases or make big financial decisions about the future of your company without knowing its present condition?
TAX REPORTING & PAYMENTS – The IRS requires C Corporations to report their federal income taxes by March 15th and to make estimated tax payments by the 15th day of the 4th, 6th, 9th and 12th months of their tax year. If your bookkeeper isn’t keeping up with the books, then making these payments are practically impossible.
I’ve said this so many times before, but as a bookkeeper, my job is to make sure a company’s finances are in order. I love it and so does everyone on my team!
We look forward to the end of a month or a quarter to update our clients on their company’s finances. If your current bookkeeper isn’t enthusiastic about your finances or sharing your books with you, then you need to have a serious discussion with him or her. It’s the end of the first quarter and time is money, so make sure your books are in order and you know NOW where your company stands.
