The Accounting and Tax Tips You NEED to Know for Your Biz!
May 27, 2019
This week we have the pleasure to hear from accounting expert, Amanda Johnson, about the back end of entrepreneurship!
From our Amazing Guest:
Hello! My name is Amanda Johnson. I am a Bookkeeper, personal finance coach, and the CEO of Calc-U-Later Bookkeeping, LLC. I am from Glen Burnie, Maryland located about 15 minutes South of Baltimore, Maryland.
I live with my fiancé, two rescue pups Gracie and Lucas. I love travelling, collecting Starbucks mugs, and I have an obsession with nail polish! I started my business about 2 years ago after longing to get back to a passion I had left behind in college, to build the life I desired for my family on my terms, and to help other entrepreneurs ditch their money struggles through the education and use of bookkeeping in their businesses.
Why you need accounting in your life!
I speak with a lot of entrepreneurs locally and online that wonder what the importance of accounting is in their business. Of course, they know that it’s important to keep track of how much money they are making, bills that need to be paid, and making sure that outstanding invoices are being paid to them.
Accounting is so much more than that.
As companies grow it is so important to have accurate and complete financial records for tax compliance, budgetary decisions, future investment opportunities, and determining profitability.
Let me expand on this a bit.
Every year you are required by your local government to file your annual tax returns, and in the United States you are also required to file quarterly tax payments. In order to ensure that you have paid enough taxes, and that you are maximizing deductions it is important that you have accurate and complete financial statements.
Budget creation is a super important accounting function as it outlines your business expenses by looking at one single document. For most companies the budget is not set in stone, allows for changes, and expansion. The budget can also be used as a tool to determine if you can outsource a task, increase an advertising strategy, even hire your first employee. The budget also creates a historical record of how you spent capital during the year.
Everyone knows that the point of being in business is to make money. But there is a difference between earning high amounts of sales revenue, and generating enough profits in your business. When looking at profitability you want to make sure that you are not spending as much or more than the sales revenue that you are bringing in. Your budget can help keep this in check, as well as looking at your financial statements on a regular basis.
There also may come a time when you seek a bank loan to expand your business. Most banks, lenders, and investors require your three main financial reports, and may even ask to see your budget. This is requested to ensure that your business has an accurate and reliable picture of financial expectations.
A few tips to help!
If you are just starting your business some tips to start organizing your business financials include being sure to get a business checking account to separate your business from your personal spending habits. Start by using a bookkeeping software early on in your business. There are some free or low-cost options out there, a free one that I recommend is called Wave. Also, it is so important that you are keeping track and organizing your receipts, for tax purposes, and ease of bookkeeping.
Are you ready for the next step?
If you are beyond the startup stage and you are spending tons of time on your business books, and frustrating yourself in the process maybe it is time to outsource your bookkeeping. Outsourcing your bookkeeping will reduce the amount of stress your have around money in your business, it will also reduce any fears that you may have about the task being completed correctly. More importantly outsourcing bookkeeping will get you back your time to focus on the part of your business that you love, spend time with loved ones, and do all the activities that you love to do.
How to Get in Touch With Amanda Johnson
Website: https://calculaterbookkeeping.com/
Business Page: https://www.facebook.com/BookkeeperAmandaJohnson/
Facebook Group: The Financially Free Boss Babes https://www.facebook.com/groups/358352854785816/
*Some clickable media, usually the book recommendations, are affiliate links, and should you choose to buy through using those links then The Infinite Power of You Inc. may earn an affiliate payout commission. This is at no additional expense to you, and helps keep this blog going.
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