Tag Archives: bookkeeping advice

03.13 2021

Why Bookkeeping is important?

Bookkeeping is important for helping maintain accurate financial records and the overall health of your business. Yet, many businesses fail to implement this integral process.

 

Whether you’re doing your own bookkeeping or having outsiders handle it for you, here are several benefits of prioritizing up-to date bookkeeping.


1. Budget
It‘s challenging for businesses to forecast for future expenses and income without any prior year data. Bookkeeping can help organize incomes and expenses properly as well as it makes it easier to review financial health and resources for future planning.

2. Tax preparation
Tax preparation is another complex task that businesses must get done every year. In most cases, its frustrating to find or gather all necessary support documents for filing a tax return. A great bookkeeping function can help businesses be more efficient for tax filing process by simply recording information and being ready for tax time.

3. Financial and Business analysis
By keeping accurate records, business owners get a snapshot of their company health and standing from financial statements. Financial statements, or reports, allow business owners to know exactly where outgoing money is being spent. They can also help find an opportunity or trend to grow their business.

4. Organization
Achieving financial organization is the most helpful and beneficial outcome of bookkeeping for business owners. Thanks to technological development, businesses can increase accessibility to data, conveniently and securely store and share financials and other data, and easily communicate with clients and accountants. A shift from traditional accounting to accounting software encourages businesses to organize and manage their financial information in an efficient manner.

5. Better cash flow
Bookkeeping improves cash flow. Implementing the routine recording of business transactions will allow business to track when their customer and vendor invoices are paid. For business owners, ensuring payment and being paid on time are essential for maintaining profitability. Avoiding outstanding balances in Accounts Payable and Accounts Receivable also helps keep financial reports clean.

Now you know why bookkeeping is important. There are more benefit businesses will gain from bookkeeping. In general, it can save businesses time, money, and stress! If businesses need to implement this integral process, consider hiring a professional or contact us. We are here to help train business owners to encourage business growth together.

10.25 2015

Talk to the IRS

Responding to a notice from the IRS can be a daunting task. Sometimes it’s hard to figure out why you’re being contacted, how to respond, what information the IRS needs, and/or whether or not we can refute any charges. Often times we are provided with a lot of information about what will happen if we don’t respond properly, but very little guidance on how our response should be presented. Here are some tips to ensure that your communication with the IRS is well received, and your issue can be resolved quickly.

Understand Your Notice
Read your notice and read it again. Make sure you fully understand what the IRS is telling you before you respond. If you are still unsure, you have options. Contact an accounting or tax professional to help you understand your notice, or call the IRS to clarify.

Call or Write?
Getting through to the IRS via phone can take time, but is helpful if you have questions about your notice. Calling can expedite your response process, as you can confirm with a representative exactly what the IRS is looking for, how you should respond, and if you have options. Have your identification information and questions ready before you call. Make sure you get off the phone knowing exactly what the next steps are.

Remember Who You’re Talking To
When you contact the IRS remember that you are talking to a regular person, not an entire government agency. Always be professional and respectful, but don’t be afraid to ask questions. They also want to resolve your issue as quickly and efficiently as possible.

Provide Relevant Information
When you’re ready to send your formal response, in writing, make sure you provide the following information to ensure your response is easily identifiable:

  1. Your name and/or business name (as written on your original notice) and tax ID.
  2. Reference number as written on the IRS notice you are responding to.
  3. Identify the issue and period the notice refers to. For example: Quarter 4 2014 Payroll Tax Deposits, or 2013 Form 940, or 2014 Form 1040, etc.
  4. Correct contact information. Include the individual’s name as written on the notice and correct phone and email. A Power of Attorney form must be completed for any other individual to communicate with the IRS on your behalf.
  5. A copy of the original notice.
  6. Enclose any relevant or requested documentation.