The Importance of Bookkeeping

Help! I'm burried with work!Bookkeeping is one of the most important aspects of running a business. You need those records to know exactly how much you’re spending, to calculate your taxes, and estimate your business needs for next year. Without accurate records, it can be hard to plot reasonable growth expectations, leading to more expenses than you can cover.

But you already know this, don’t you? Of course you do. There are, however, some things that you might be overlooking. Here are three of things that can make a huge difference.

1. Computer Backups

Electronic records are very convenient. They’re easy to organize and search through. They take up no space in your office, so you’ve got more room for other necessities. I’m sure if I asked you, you could tell me quite a few other advantages to computer records. After all, you’ve been using them all this time, right?

What happens if something goes wrong with your computer, though? It’s more common than you think. Computers are complicated machines and they break down over time. When a computer goes bad, especially if it’s something critical like the hard drive, you can loose everything on it. You hear all kinds of horror stories of people who lost everything from work because their computer’s hard drive crashed.

That’s where backups come in. You should be backing up your important files regularly – at least once a month. This includes all of your business’s bookkeeping records. If you have up-to-date backups, you don’t need to worry about anything going wrong with your computer, because you’ll have everything you need saved on an external source. If your computer does go bad, you can just upload the files to your new machine and lose nothing. That’s why we make sure we have backups of all of our records.

2. Proper Receipt Filing

While electronic records are important, not everything should be kept electronically. When you absolutely must prove your claims, having physical receipts helps keep you out of trouble.

With that in mind, it’s a good idea to file your receipts properly. Well organized and filed receipts save you money with your accountants because it’s less time they have to spend searching. The best way to store receipts is to first divide them into categories, then organize them by month and year. That way, when your accountant needs to find your expenses for office supplies for January of 2017, he knows right where to look to find it.

3. Planning Out The Year

IRS headacheYou want to avoid the tax season rush. You have no idea how common it is for accountants and bookkeepers to get bombarded by requests for extensions a week or two before January filings. If you wait until the last minute, you may find it hard to find an available bookkeeper. That can leave you in a bad crunch, trying to organize everything yourself with a deadline looming.

To avoid this, you’ve got to plan ahead. Meet with your bookkeeper well in advance (we recommend at least six months) to schedule regular meetings to get your taxes in order on a quarterly basis. That way, when tax season rolls around, you will have most of the work already done. Your accountant will be able to get the rest done quickly, avoiding the need for extensions. That will take a load of stress off and allow you to get ahead for the next year.

Let Us Help

When it comes to bookkeeping, Dragon Financial has you covered. Our virtual assistants know how to keep on top of things. With our expert knowledge, we can help you get ahead on those taxes so you don’t have to worry. We’ll save you time, we’ll save you money, and, most importantly, we’ll save your sanity! Get in touch with us today and see just how we can help you get on top of your records before they become a source of stress. Now is a good time to get ahead if you want to avoid the rush!