11 01, 2020

Important Tax Deadlines 2020

By |2019-12-26T19:33:09+00:00January 11th, 2020|Uncategorized|0 Comments

Don’t let a missed deadline be the reason your business loses money this year. Alleviate some tax filing stress and avoid paying penalties with these tax deadlines for 2020. For more a more detailed outlook on tax forms and dates, get in touch with our accounting team at Bakersmith Bookkeeping Group to ensure a smooth tax season!  Jan 15, 2020:  4th Quarter 2019 Estimated Tax Payment Due: Those who are self-employed or have fourth-quarter income that requires you to pay quarterly estimated taxes, make sure to get them postmarked by this date.   Jan 31, 2020:  Form W-2 Filing Deadline: Those who have employees need to fill out two copies of Form W-2 for each employee. One copy must be submitted to the IRS and the other sent to the employee by this date.   March 15, 2020:  S Corporation and Partnership Tax Returns Due: File your S corporation tax return (Form 1120-S) or Partnership return (Form 1065) by this date. If you need more time to file your tax return, file for an extension.   April 15, 2020:  Individual Tax Returns Due of Tax Year 2020: Tax returns are due by midnight on April 15, 2020. [...]

2 01, 2020

Stay Ahead in 2020 with a Strategic Business Plan

By |2019-12-26T19:30:37+00:00January 2nd, 2020|Uncategorized|0 Comments

Set your business on track and start the new year with a clear strategic plan. Incorporating a strategic plan can help you analyze the past and current position of your business and outline the projection of growth for the next few years. Like any venture, coming in with a well-rounded, comprehensive plan can help you prepare for unexpected road bumps down the road, improve in areas where you fall short, have a better control of your wanted outcomes, and ultimately strive for your bigger-picture goals. Bring your business toward your long-term goals with a few tips on how to create your strategic plan:   SWOT – Before you dive into creating a business plan, begin with a SWOT analysis. SWOT is an acronym for the four factors (strengths, weaknesses, opportunities, and threats) that help you assess your business’ current position before heading into your strategy. This analysis can help give you a better picture of both the internal and external factors that influence your business’ success.  Vision Statement – Brainstorm phrases that summarize the overall, goal or big-picture vision of your company. Eventually, refine these phrases into a concise summary of where you want to see your [...]

12 12, 2019

Ready for Tax Time? Keep your Receipts Organized

By |2019-11-27T00:41:56+00:00December 12th, 2019|Uncategorized|0 Comments

It’s easy to undermine the value of keeping your receipts organized – until your business loses money from your next tax return. Receipts are audit protection; keeping them organized and stored away will serve you when you need proof for tax deductions on business related expenses. Without proper documentation, you could be losing the money you thought you would be getting back as a tax deduction. So before you disregard your receipts, read the following tips for keeping your receipts organized. Keep all receipts. Although technically under IRS Publication 463, you would not need to keep receipts for expenses under $75, for peace of mind holding on to receipts can come in handy if you ever need to provide additional proof to the IRS. Being prepared means you will save time and money. Additionally, small expenses add up. Keeping your receipts can give you transparency on where your money is going. Record business purposes on receipts. Not all purchases or expense are self-explanatory. For example, you may remember why you bought a printer, but a restaurant receipt for a business [...]

3 12, 2019

5 Bookkeeping Habits Business Owners Should Have

By |2019-11-27T00:43:33+00:00December 3rd, 2019|Uncategorized|0 Comments

It’s no surprise that building good habits sets your business up for success. As a business owner, developing good habits can help you establish a routine of systems that optimizes success - especially in the case of handling business finances. Developing a habitual system for handling your business’ finances allows you to save money, increases the probability of catching financial errors, and provides a comprehensive outlook on the overall financial health of your business. Here are a few bookkeeping habits that can help you better manage your finances. Plan ahead for major expenses. Mark your calendar for big expenses in your future. For example, this can include computer upgrades, an anticipated office move, or other major expenses that are not in your usual monthly expenses. Marking your calendar can help put you in a mindset to save for these expenses, even if your business if currently experiencing a flush period. Identify and track all expenses. Tracking your expenses can help you assess where your money is going and identify areas where you can save money. Additionally, it can also be [...]

14 11, 2019

What You Need to Know Before Hiring a Bookkeeper

By |2019-10-30T16:44:27+00:00November 14th, 2019|Uncategorized|0 Comments

Outsourcing business tasks is a big step for any business owner. As your business grows and more tasks demand your attention, outsourcing your business’ bookkeeping can help give you your time back to invest it on growing your business. Hiring the right bookkeeper not only helps you address current financial tasks but can also contribute to your business’ growth in the long run. But before you hire a bookkeeper, here are a few things you should know and consider. Shop around. Ask for referrals from people you trust and look at reviews. When interviewing candidates, ask for client references to get a better understanding of their relationship with their clients. Some business owners don’t know what to expect when hiring a bookkeeper, so make sure you ask questions and interview different bookkeepers to compare their abilities. Assess their credentials and skills. Do they have a college degree or a license? Ask about their training, experience and certifications. Identify the skills they have, including other services they can offer such as payroll or accounting software expertise. Some essential bookkeeping tasks your [...]

8 11, 2019

Daily Small Business Accounting Tasks

By |2019-10-30T16:38:27+00:00November 8th, 2019|Uncategorized|0 Comments

Business finances can get easily muddled without a clear accounting process. When it comes to accounting, staying organized is key. Creating a daily checklist can help you manage your accounting tasks in a timely matter, reduce late payments or unexpected expenses, and help you stay ahead of your finances. Here are a few daily tasks that can help you stay financially organized. Check How Much Cash You Have on Hand: Start your day by checking your business bank account to see the amount of cash you have on hand. Small expenses can pop up daily and eventually add up. It’s good practice to accurately assess what you have on hand to avoid making a bigger mistake down the line. Tracking Accounts Payable & Accounts Receivable: Keeping track of accounts payable and accounts receivable will help you stay ahead and financially in check. Track the money that you owe other vendors, and well as keep accurate records of the cash to come in. This will reduce the chances of incurring unexpected expenses or running into unpaid transactions. Payroll: Time is money. [...]

21 10, 2019

Tips on How to Get Your Invoices Paid Faster

By |2019-10-23T23:31:50+00:00October 21st, 2019|Uncategorized|0 Comments

Having a steady income is pertinent in running a successful business. With that being said, no business owner enjoys a late payment. Late payments not only set you back when managing your business’ finances, but they can also compromise business relationships. The following tips can help you avoid late payments and encourage your clients to pay their invoices faster. Be polite. Phrases such as “please pay within” and “thank you for your business” can make a difference. Studies show that changing the tone and language of your invoices can help you get paid faster. Specify the terms. Provide a clear, specific time frame such as ’30 days’ to avoid misunderstandings. Make sure you properly format your invoices, provide accurate information, and include all the details your client will need. Set a routine. Sending out invoices at a set time can help your clients get in the swing of your routine. This can help them expect when to receive your invoices and plan when to pay. It also helps to send invoices promptly after completing your service. Hold off work. If [...]

14 10, 2019

Understanding Full Cycle Accounting

By |2019-10-01T16:55:43+00:00October 14th, 2019|Uncategorized|0 Comments

The term “full cycle” can be applied to different aspects of accounting. Full cycle accounting can refer to the processes in place to produce financial statements within a reporting period, the cycles of accounting positions, or refer to the business cycle of a company. The following points explain the concept of full cycle as an interchangeable term within accounting. In a reporting period, full cycle accounting is comprised of all the activities that an accountant undertakes to produce financial statements within that period. These activities may include recording business transactions, adjusting entries, producing financial statements, and closing books. Full cycle accounting also refers to the complete set of transactions that is associated with a specific business activity. These activities can include sales, purchasing, and payroll. In sales, the full cycle of activities includes the process of buying goods, storing goods, processing customer orders, picking items from stock, selling them, and collecting payments. In purchasing, one submits a requisition for goods, issues a purchase order, receives the goods, and processes the payment. In payroll, the full cycle comprises of employees submitting [...]

13 09, 2019

Accounting Basics

By |2019-09-12T23:20:36+00:00September 13th, 2019|Uncategorized|0 Comments

Learning how to record and report business transactions is an essential skill when running a business. With accurate financial information, you can better assess the financial health of your company to make smarter financial decisions, take calculated risks, identify unnecessary costs, and even save your company money. The following terms and tips will give you insight into the basics of accounting. Create a System of Record Keeping Set up accounts in which information can be stored. Accounts can be categorized as the following: Assets – these are the resources or items of value that are owned by your business, such as accounts receivable and inventory. Liabilities – these are debts or transactions to be paid by your business, such as accounts payable and loans payable. Equity – this is the difference between assets and liabilities Revenue – this is your company’s earnings in the form of billed amounts to customers in exchange for your goods or services. Expenses – this is your company’s costs or money spent to generate revenues, such as rent expenses and employee wages. Record Transactions Individual [...]

12 09, 2019

Equations Business Owners Should Know

By |2019-09-12T23:35:33+00:00September 12th, 2019|Uncategorized|0 Comments

Running a full-scale business comes with various daily duties as well as long-term responsibilities. Of course, outsourcing a few business responsibilities, such as accounting, can give you more time to prioritize other business tasks. But as a business owner, you should know basic accounting equations in order to have a greater understanding of your company’s financial position. Here are a few equations that every business owner should know: Total Assets = Liabilities + Equity This formula can be referred to as your basic accounting equation. Assets are all things of value that your company owns, such as property, cash, accounts receivable, or inventory that provide your business benefit. Liabilities are defined as your company’s debts. This can include rent, account fees, or accounts payable. Finally, equity is the portion of the company that belongs to the owner. Net Income = Revenue – Expenses Your revenue is the profit your company gains through sales or other positive cash inflow. Expenses are your company’s costs. Expenses subtracted from your revenue can show you how much you have earned and calculate your net [...]