Tax Avoidance

Are you missing legitimate tax breaks because you don’t keep good records?  Often business owners look at taxes as something to avoid like the pledge, but it’s really not the worst thing in the world.  Don’t spend money to save money when it comes to taxes.  Tax avoidance is healthy for any business, unless your spending more money than necessary.

A few questions to mull over before making a purchase to avoid tax:

Can you afford it? 

Do you need it for your business?

Are you saving enough to make it worth spending more?

Instead of trying to spend your way out of paying taxes, be informed throughout the year.  Develop a bookkeeping system that allows you to captures more tax breaks.  Record keeping is vital to every business because it could save you money.   

You should never spend money to save money on taxes, unless the item being bought is necessary and there is an actual need.  

Having a great bookkeeping system in place allows for accurate information to be at your fingertips always.  Being informed allows you as business owner to make purchases you need to grow your business throughout the year.  

Good records allows your CPA to find possible tax breaks for your business.  As a bookkeeper, I strive to help businesses prepare for tax time.  I also work directly with your CPA, so you don’t have to face it alone.

To learn more about what I do, visit my webpage www.thegrowthkeeper.com 

Do-It-Yourself

Multi-tasking is a great skill, but at what point does it become multiple messes?  It’s true, there was a time when you first started out that you could do everything.  At some point you meet a crossroads and find yourself lacking for time.  Do I expand or just stay the size I am?  If you are reading this, chances are you are either expanding or planning to in the future.  

Don’t let your business take over your life, make it work for you. 

As a business owner, it’s easy to get the DIY mentality because you can do it yourself.  You can do it yourself or you have done it because you had to.  If you are trying to grow your business, there isn’t enough time in the day to everything that you were before. 

At some point, you become too busy and only the absolutely necessary tasks are completed.  The longer thins get put off the bigger pain they become. 

Technology today makes life a lot easier and convenient for people to multitask.  We all have to do it to some extent, but you can’t drop the ball.  Finding your balance without losing control of your business can be tricky.   It’s hard to let go and accept help even when we need it most.  

As the owner of your business, it is possible to break away from the physical act of bookkeeping without losing control of your finances. Working out of the cloud allows you to see what is happening in your business from anywhere you have an internet connection! 

Write down all the tasks you do on a weekly to monthly basis, and ask yourself what can I get rid of?  Can it be outsourced and my time spend more productively on something else?  

I also offer support for those of you who choose to go your own bookkeeping, but need help periodically. I will walk you through how to solve your problem via video chat or by phone.

Find out more about how virtual bookkeeping can help your business, visit my webpage www.thegrowthkeeper.com.

Bookkeeper vs Accountant

Do I need a Bookkeeper and an Accountant?

Accountants and bookkeepers often times get thrown into the same lump of financial people.  They have similar functions, however, the main difference comes around at tax time.  There is an old saying, “the more eyes the better.”  It’s a bit confusing to know what you need with all the information flying at you.  Tax time can be confusing and frustrating. 
The problem is doing your taxes is necessary for any business or else the IRS will be after you.   

Bookkeepers

Bookkeepers don’t usually want anything to do with taxes.   I know as a bookkeeper I have no desire to prepare taxes.  Instead, a bookkeeper is tasked with keeping the monthly transactions accurate and helping you plan for future growth.  

This includes everything from matching transactions, managing accounts receivable, accounts payable, reconciling, and reporting at the end of the period.  The primary goal of the bookkeeper is to get everything classified and organized with accuracy.  

If the bookkeepers do their job correctly, tax time should be a breeze for you as a business owner.  One other great quality of a bookkeeper is that they will work directly with the CPA to eliminate the headache on your part.    

If your books are in great shape before the CPA gets them, it will save you money because it will now take them less time to prepare your taxes.  What it all boils down to is the bookkeeper has your best interest in mind and is a great resource for you. 

Accountant/CPA

When I think of my CPA, the first thing that comes to mind is TAXES.  Most CPA/accountants prefer not to do bookkeeping on a monthly basis.  In fact, larger firms often outsource their bookkeeping to a third party.   There is a chance that you may end up with a bookkeeper that you’re not happy with and doesn’t have enough time to focus on YOU. 

Accountants and CPAs focus on estimated income taxes, year-end tax returns, tax planning, and other aspects of getting you the biggest return possible.  They spend a great deal of time focusing on educating themselves on the new tax laws each year.  

Every business should have a CPA or accountant for the simple reason that unless you understand tax law inside and out, it is very easy to overlook and lose money. 

Working together

All in one person that does it all sounds great, but is it really?  Think about yourself as a business owner, if you spread yourself too thin, there are tasks that don’t receive all your full attention.  Sometimes what is good for your tax return isn’t always good for your business. 

A bookkeeper’s focus is on your business and its profitability, whereas accountants often times are more focused on your taxes. 

 If you have both, they will work directly with each other and save you the headache of answering all the head scratching questions.   

www.thegrowthkeeper.com 

Automate Your Business

Automation allows us to do more in less time!  It is happening now and improving everyday, so why are you sitting on the sidelines?  It can be a bit overwhelming and seem a bit too complicated to master.  This doesn’t just apply to bookkeeping, but every aspect of business.

I am sure you have heard the phrase, “there’s an app for that.”  Automation doesn’t just apply to retail or high volume businesses anymore, it can be used for every size of business.  It is affordable for small businesses now also!    

When the first computers were made for the consumer market, not very many were buying them. In the 1990’s, it was very common for families not to have a computer personally.  Today, most adults have at least one device or computer personally. Technology was developed to simplify the things we do, but yet are we maximizing on it?

Bookkeeping has changed greatly in the last 20 years or even the last 5 years.  The main role of a bookkeeper was primarily to enter data and  keep the records straight. Data entry is time consuming, not always accurate, and a major headache!

Bookkeepers of today can be proactive and help businesses reach their potentials because of technology.  Reactive bookkeeping is what has already happened, whereas reactive bookkeeping is simply the ability to see what is coming. I don’t mean to discount historical data, but you also need to know what is going to happen and plan for your future.  

One way to predict and plan is by building a budget.  You have probably have made one at some point in our life, whether it was personally or for business.  My question is have you ever actually implemented it?

As a bookkeeper, one of the services I provide my clients is accountability.  I help you simplify your bookkeeping, so you can spend the time building your business and focusing on your goals.  

Learn More How I Can Help You

Here is a few things to consider automating

1. Calendar

2. Bookkeeping

3. Invoicing

4. Mileage Log

5. Payroll

6. Social Media

7. Workflow Management

Check out the App store or ask a trusted advisor for advice.