If the thought of the upcoming tax season fills you with dread because your books have fallen behind, you’re not alone. Small business bookkeeping can be a struggle for owners who have to run their business AND manage their books throughout the year. However, there’s still time to catch up and avoid unnecessary stress. Here are some strategies to help you get your books in order before tax season arrives.
1. Get organized
The first step in getting caught up is to gather all of your financial documents from the year. This includes receipts, invoices, bank statements, and any other records of business transactions. If you’ve been inconsistent with recordkeeping, now is the time to organize everything by month and category. Using accounting software can help streamline this process.
2. Catch Up on Data Entry
If you’ve fallen behind on entering your financial data, it’s important to get everything updated as soon as possible. Inputting expenses, income, and other transactions into your bookkeeping system will give you a clear picture of your financial status and make tax preparation easier.
3. Reconcile Your Accounts
Reconciliation is critical when playing catch-up. Go through each of your business accounts—checking, savings, credit cards—and reconcile your financial records with your bank statements. This will help you identify any discrepancies and ensure that your records are accurate.
4. Seek Professional Help Now
If your books are in disarray and you don’t have the time to sort them out, now is the time to contact a bookkeeper. With tax season fast approaching, many other business owners are in the same situation and are already scheduling appointments. Don’t wait until the last minute, as bookkeepers and accountants become increasingly busy during this time.
If you’re feeling overwhelmed with the thought of getting your finances caught up, don’t hesitate to reach out to us. Nailed It Business Services specializes in bookkeeping for small businesses and can help you get your books caught up and ensure your records are accurate before tax season arrives. Schedule a consultation with us and get back on the right track!
