Now that the tax season is behind you, or you have at least filed for an extension, you might consider doing a little spring cleaning of your bookkeeping. Small steps often go a long way toward creating greater success for your business. Here is a list of seven things you can do to beautify your accounting and keep your business in the right direction:
Manage your documents
This is probably the right time to get rid of all the documents you no longer need. Free up storage space in your workbooks by destroying or shredding old documents. Most documents to support your tax forms can be thrown away after seven years.
Consider moving to paperless
Banks, credit card companies and utilities generally allow you to process your business electronically. You can completely disable paper statements, using online methods to pay your bills and move your money. Some online systems may even be integrated with accounting systems such as QuickBooks. If you use a cloud-based service, you can share information easily and securely with partners.
Review the security measures
While we are talking about computer records, make sure you have the proper security in place to protect your files and systems from external attacks. If you do not have internal computer expertise, it can be helpful to talk to a computer professional, who can guide you through the security measures you should have.
Update Accounts Receivable
It's never too early to make sure you're caught off guard from unpaid bills. Make sure you collect the money that your company has to pay, including interest due for late payments.
It's also a good time to make sure you do not pay too much for supplies or services. Check your balance sheets to see if there is anything you could reduce or reduce. Review the fine print of the service contracts you may have to make sure that the conditions have not changed and that they are no longer favorable to you.
Repaying the debt on a credit card
Credit card debt is one of the most expensive forms of debt you can have. Pay off your credit cards as quickly as possible, even if it means taking out a loan or a line of credit with a lower interest rate. Use your business credit card only when you know you have the money on hand to pay back the purchase.
Reassessing Your Budget Objectives
Now that you have a balance sheet of the company 's finances last year, it might be worth looking closely at the budget objectives of your current year. Decide if you want to speed up or reduce your business activities. Determine if your plans for the future make sense for your business.