Being a business owner can sometimes make you forget about taking care of your finances due to your focus on getting customers. And sometimes you just have too much on your plate that you don’t have time to work on. Then it becomes a much more complicated problem.
Bookkeeping can be one of the most stressful tasks for every business owner as they have to keep track of their finances for the past year and they need to make sure that they’ve filed their taxes already or they’ll suffer losses due to a penalty.
Here we will show you a few ways to simplify your business finance so you can be better at taking care of your finances and make it easier to file it all.
Setting money aside for potential taxes.
Everyone needs to pay their taxes every year, especially business owners. It’s important that with all the spending that goes down the whole time, there has to be a certain amount of money saved up to pay taxes.
This is important as some can probably forget to have a bit of revenue left during the end of the year so that they can pay off any liabilities.
If you’re new on taxes and don’t have MYOB payroll in 2020, then a good reminder would be to save up about 30% of your earnings each year. This 30% is the usual estimated tax liability that you have to pay for your business.
Setting up reminders.
Make it a part of your schedule that you should check your financial status for a few times a week so you can always update yourself on your gains and losses.
Place it in your calendar so that you can always remind yourself no matter how busy you are during the day so it can slowly become a habit of yours.
It’s also a great idea if you put a certain limit on the spending you do in each day so it won’t incur any losses that will cost you in the long run.
Having dedicated bookkeepers.
If you don’t have enough time to do all your finances due to your busy schedule then it could be a great investment to hire a dedicated bookkeeper.
Bookkeepers will do all your finances for you and it’s much better if you get a professional as they can do their job much efficiently so you won’t have to trouble yourself in keeping up in your income and paying your taxes as they’ll be the ones to do it for you.
Being organized.
Organizing all your finances can be a huge help to you in the long run. If everything is placed properly then you won’t have to get the trouble of finding everything when the time comes to pay taxes.
Place everything in a shelf, organize it in a folder, and record each and every one of your transactions so you can easily check your annual income.
This can also be a good help to you in case you get audited so you can show proof of what your business expenses was the whole year.
Use online accounting software.
If you want to be a bit more cleaner on checking your business finances then you can also use some online accounting software so you won’t have to deal with all the receipts that will surround you.
Accounting software enables you to create a customized financial report throughout the year so you can save more time and can focus more on getting your sales better.
Use automated bill payments.
Automatic bill payments can help you get less hassled on your finances as you don’t need to check them every now and then.
They’re paperless so you don’t have to hassle yourself with physical receipts. It also saves you time as you won’t be the one processing all of your expenditures and it also helps you avoid late fees.
The only problem with this is that you should always make sure that you don’t overspend on your annual budget as you won’t be able to check your balance every time you’re paying for something. With this risk factor, this method should be done responsibly so you won’t create losses in income.
Final Words
It’s important to always check on your finances so you won’t get into any trouble in the foreseeable future. Be sure to take care of your expenditures for the whole year so you can keep track of what you’ve been spending so you won’t get any losses.
