Bookkeeping Tips You Need to Know | Bookkeeping Services Calgary
It’s all fun and games until tax season hits and then you’re knee deep in receipts and bank statements trying to figure out where your hard earned cash went. As the saying goes, it’s not a failure, it’s just a lesson learned. Hopefully, this business lesson didn’t cost you very much.
This is a no-judgement zone and we’ve all been there. The first step in recovery is recognizing that you need better bookkeeping. The second step is to take action - i.e. what changes need to happen so you can be dang sure your next tax season is easy, breezy, lemon squeezy?
I’ve put together a list of bookkeeping tips that you need to know when you’re running a business. It’ll make your life easier, trust me.
Tip 1: Business Bank Accounts
When it comes to bookkeeping, mixing business (transactions) with pleasure is not advised. I suggest opening three separate business chequing, savings and credit card accounts. Ideally, you should do this before you start receiving money but as Drake once said, better late than never, but never late is better.
Tip 2: Detailed Receipts
If you’re going to throw around the typical entrepreneur flex: “I can write this, this and that off,” you need to make sure you have a detailed receipt or it didn’t happen (no tax deduction for you). When you’re buying something related to your business make sure you ask for the detailed receipt, not just the debit/credit card authorization one. At the minimum, all business receipts should have all this info: what you paid for, who you paid it to, transaction date, how you paid, and how much (including sales tax and everything).
Tip 3: Save for Taxes
Have you ever tried paying the tax man with cool Instagram photos from your Maldives trip instead of cash? Riiiight. That’s a no-go which means you have to save some of the money you earn. We recommend setting money aside monthly or quarterly for income tax and sales tax (if applicable). Don’t mess with the tax agency’s money, just don’t.
Time to get your money $hit together and learn how to keep your business finances in order so you can feel good about your money. Join BOOKKEEPING BOOTCAMP today!