Get Your Books Caught Up for 2020 with These Tips
As a small business owner, your passions and interests lie with the work you’re doing and offering to the world. Chances are, they don’t involve doing your bookkeeping and accounting. If you’ve gotten behind on your books, it can feel daunting to get caught up. But it’s not impossible. Follow these steps to get caught up on your books for 2020, with the help of an experienced CPA.
5 Ways to Catch Up Your Books
First of all, it’s important to understand the consequences of getting behind on your books. There is the chance of losing your business completely, or a more likely consequence is being audited by the IRS. It is most certainly worth setting aside the time to get caught up on your books before the next tax season rolls around.
Here are the steps to take once you’re ready to get caught up:
- Gather receipts. Collect all invoices and receipts that are business-related. These may include customer invoices, debt collections, and business purchases.
- Reconcile bank accounts. This step involves identifying and fixing any errors you may come across.
- Separate business and personal expenses. You may face certain tax implications if you do not take the step to separate your personal from your business expenses. At tax time, an account that contains both personal and business expenses can make matters much more stressful and confusing.
- Collect all W-2, W-9, and 1099 forms. If you paid independent contractors this year, you’ll need to file these forms.
- Hire an experienced tax professional. Hiring an experienced CPA to review, keep track, and organize your books, finances, and tax deductions before you file your taxes will help to ensure that everything is correct, any errors are fixed, and any available tax deductions are maximized.
It’s much easier to remain caught up once you’re caught up! From here on out, it’s a smart idea to go paperless to keep digital records and keep track of your documents. However, working with an experienced CPA will ensure your books never miss a beat.
Contact Paul Anderson CPA to have all of your bookkeeping and tax questions answered, and to get your books caught up with industry-leading expertise. Each of our clients receives a customized plan to suit your specific needs, along with access to our highly efficient software to ensure your books are always kept up-to-date.