The Benefits of Hiring a Bookkeeper for Small Businesses

Benefits of working with a bookkeeper

A new business usually requires minimal bookkeeping and can be managed by maintaining a simple spreadsheet. However, as a business expands, the business owners will struggle to keep the books accurately. Accurate Tax & Bookkeeping, a tax preparation service, lists the signs that a small business needs a bookkeeper and the benefits of hiring one. 

 

Signs a business needs a bookkeeper:

1. If the books are never up to date
2. If the sales have increased but not the profits
3. If the cash flow is unpredictable
4. If the DIY bookkeeping takes more time than can be afforded 

 

How will hiring a bookkeeper help a small business?

1. Prevent errors

A lack of experience and excess bookkeeping tasks can overwhelm a business owner whose core skill is not bookkeeping. Mistakes such as data entry errors, missing entries, double entries, and mixing personal and business expenses can make tax filing a nightmare. Business owners can ensure that their expanding business accounts are error-free by hiring a professional.   

2. Pay less in taxes

An experienced bookkeeper can quickly identify the ordinary business expenses tax-deductible in a particular industry. Moreover, the cost of hiring a bookkeeper is also tax-deductible. 

3. Focus on business expansion

When business owners have to spend a majority of their time on keeping the books error-free, they cannot invest time in achieving their core business objectives. Business owners need to invest time in networking, marketing, managing, purchasing and supplying, selling, and communications to pursue business expansion. 

When bookkeepers take over the tax filing and bookkeeping tasks, business owners can be assured that their books are in the right hands while investing their time in jobs worth their money. A survey shows that, on average, companies’ profits increase 16% after they hire bookkeepers. 

4. Access to critical financial information

A bookkeeper can show a business owner the accurate financial picture of the company. When a bookkeeper keeps track of the expenses and profits, business owners can discern their budgets and spending. Any confusion regarding the books can be instantly clarified when businesses work with a bookkeeper. 

5. Pay less in accounting fees

When business owners cannot manage the monthly financial statements across the year, they are forced to hire an accountant to file taxes. This would require an accountant to prepare a report for the year. This is a bookkeeper’s task for which a small business will end up paying substantially much more to an accountant. 

Therefore, hiring a bookkeeper at the beginning of the financial year ensures there are no last-minute expenses to manage the books and file taxes.

With a bookkeeping service like Accurate Tax & Bookkeeping, small businesses can save a lot of time, money, and stress when the tax filing season arrives. The accuracy with which a bookkeeper will operate will ensure that business owners can focus on business expansion and profits instead of filing taxes.

 

About ATBS

Accurate Tax & Bookkeeping Services specializes in handling financial needs for businesses of all sizes. 

Greg J. Menia founded the tax preparation service company in 2010, having worked in business tax services since 1995. The team performs tax services for small businesses and large businesses alike, serving all areas around Tampa, FL. 

Call (813) 655-9702 today for “accountants near me” in Brandon, Florida. Alternatively, contact Greg and the team at Accurate Tax & Bookkeeping Services by emailing greg@brandonaccountant.com or visiting the offices at 710 Oakfield Dr. Suite 159, Brandon, FL 33511.

Tax Preparation Service & Bookkeeping Service Images - 5/11/2022

 

Demystify Some of The Important Tax Deductions For Small Businesses

Important tax deductions for small businesses 

Every small business owner who has raced against time to file taxes or struggled with tax credits and deductions knows taxes are a complicated matter. Irrespective of the complexity, it is crucial to take out the time to leverage all the right deductions to save thousands of dollars each year. Accurate Tax & Bookkeeping, a tax preparation service, breaks down some tax deductions that small businesses must not miss out on. 

1. Educational expenses

Training and upgrading skills is a necessity for the growth of a business and sometimes it is a legal requirement for some businesses. The expenses borne by a small business to upgrade its employees’ skills and knowledge through seminars, workshops, and other means can be leveraged. These expenses that are directly related to a business are tax-deductible.

2. Regulatory and licensing fees

Businesses that require state and local permits, licenses, and other regulatory documentation or practices are necessary business expenses that are tax-deductible. 

3. Home office costs

Whether it is a stand-alone space or a home, small businesses operating out of either can take advantage of deductions such as rent, utility bills, insurance, and painting & repairs. However, businesses operating out of homes need to meet certain criteria as per the IRS documentation. One of the requirements is that the office space must be used exclusively for work only. Secondly, this space must be the primary place of business. 

4. Wireless phone service bills

Cell phones are the main and popular means of communication for most businesses. While many businesses may invest in another phone number dedicated to business purposes, others may continue using their phones for business calls. Despite this overlap of business and personal usage, businesses can still deduct a portion of the cost on their business taxes.

5. Petty cash purchases

Unplanned and minor expenses such as a few coffees for a morning meeting or an out-of-cycle purchase can slowly add up to substantial amounts over a year. Such purchases are often made using petty cash, traditionally stored in a till but now these expenses can be conveniently made using “petty cash” cards. These expenses are deductible if the receipts are saved.

6. Professional & consultant expenses

Necessary expenses such as fees paid to lawyers, tax professionals, or consultants generally can be deducted in the year they are incurred. However, if the work relates to future years, the expenses must be deducted over the life of the benefit received from the lawyer or other professionals. 

7. Automobile expenses 

Deductions on mileage and gas expenses are a well-known fact. However, many small business owners fail to deduct things like maintenance, registration, tolls, and parking fees. Keeping track of such related expenses incurred to travel for business can help in substantial deductions. 

A solid documentation system or diligently storing the receipts and saving transactional information of expenses can make tax preparation a breeze later in the year. Businesses can consult with tax preparation services such as Accurate Tax & Bookkeeping to determine what receipts and documentation are worth keeping.

About ATBS

Accurate Tax & Bookkeeping Services specializes in handling financial needs for businesses of all sizes.

Greg J. Menia founded the tax preparation service company in 2010, having worked in business tax services since 1995. The team performs tax services for small businesses and large businesses alike, serving all areas around Tampa, FL. 

Call (813) 655-9702 today for “accountants near me” in Brandon, Florida. Alternatively, contact Greg and the team at Accurate Tax & Bookkeeping Services by emailing greg@brandonaccountant.com or visiting the offices at 710 Oakfield Dr. Suite 159, Brandon, FL 33511.

Brandon Florida Accountants Images - 4/22/2022

 

Accurate Tax & Bookkeeping Shares Smart Tax-filing Tips For Small Businesses

Smart tax-filing tips for small business owners

Tax preparation and filing can give several sleepless nights to small business owners who have been too preoccupied with their core business to sort out their tax issues. It is understandable. But there is no hiding from taxes. Accurate Tax & Bookkeeping shares some great tips that can help small business owners stay organized throughout the year when it comes to taxes.

1. Be consistently organized

That last moment collection of data when the tax filing deadline is looming overhead often leads to inaccurate or incomplete results besides causing immense stress. Sounds familiar? Small businesses can avoid such situations by staying organized across the year. Being consistently careful by maintaining a separate file for taxes and digital categorization of income and expenses can make tax filing a stress-free event. Consistency and organization are key. 

2. Record revenues and expenses

Sorting through the pile-up of revenue and expense data at the year’s end can be frustrating and inefficient. Keeping a clear record of revenues and expenses on a daily/weekly basis with the help of a software or an accountant not only makes tax filing a seamless process but also helps streamline the business. The constant data input of business cash flow and net income/loss can make a difference to the way a business is managed.

3. Regular checkpoints

Get rid of the unpleasant surprises at the end of the year by proactively maintaining all tax-related matters across the year. This regular check-in not only allows business owners to understand key performance indicators but also breaks up tax preparation activities into smaller and manageable chunks. 

4. Delegate 

Small business owners always have their plates full. Focusing on core services becomes imperative to expand and grow. But at the same time tax matters cannot wait for other matters to get resolved. Therefore it is a wise decision to delegate the tax matters. Especially with any tax law changes, it's critical to work with a CPA and adopt the best business structuring strategies based on accurate calculations. 

5. Financial planning meets tax planning

Business owners should make taxes part of their financial planning. It helps reduce a business’s tax liabilities and optimally utilizes tax exemptions, tax rebates, and benefits as much as possible. By regularly checking if the records are up to date, and meeting planners to ensure all possible tax reductions have been applied, business owners can file their taxes without any stress and confusion.   

6. Leverage specific tools

Technology is a blessing. Business owners can use various free or economical tools to organize and auto-code their business transactions and simply share this electronic data with their accountants. There is no need to sift through old documents at the last moment. This little step at the beginning of the year will make the year-end peaceful and stress-free.

7. Track expenses weekly

Small business owners must make time to balance and track their expenses. This weekly check will help them stay alert about their tax liabilities and protect them from any penalties from the IRS. Keeping personal and business expenses separate is crucial.

About ATBS

Accurate Tax & Bookkeeping Services specializes in handling financial needs for businesses of all sizes.

Greg J. Menia founded the tax preparation service company in 2010, having worked in business tax services since 1995. The team performs tax services for small businesses and large businesses alike, serving all areas around Tampa, FL. 

Call (813) 655-9702 today for “accountants near me” in Brandon, Florida. Alternatively, contact Greg and the team at Accurate Tax & Bookkeeping Services by emailing greg@brandonaccountant.com or visiting the offices at 710 Oakfield Dr. Suite 159, Brandon, FL 33511.

Tax Preparation Images - 2/7/2022

 

9 Bookeeping Tips