We all want to do a great job managing our business finances, but there are so many things you must do when you are a #solopreneur! Here are some tips to help you on your journey and if you need help or have questions, feel free to contact us at 281-367-0372 or drop us a line at info@jax-books.com.
Figure Out How You Will Pay Yourself
There are two primary methods available for taking a profit from your hard work. Whether you pay yourself via payroll or a 1099, there are important implications for a small business owner to keep in mind. We have people that can advise you!
Keep Track of Expenditures
Quickbooks is a popular way for small business owners to track finances, but the learning curve is steep. Excel is sometimes an easier and effective solution when you are just starting out. However, when cash flow is sufficient, hiring a bookkeeper can give you back essential hours to focus on your growing business.
Invest in Growth
Spending long hours each week managing payroll, paying invoices and more can keep you away from running and growing your business. With bookkeeping services from JaxBooks, you can invest your time to better use. We can help with paying invoices, keeping track of A/R and A/P, Payroll, and more!
Separate Business and Personal Accounts
It is easy to “pierce the veil” when you run an LLC and get flagged by the IRS. Whether your small business operates as an LLC or another business entity, separating business and personal accounts and expenditures will help you to avoid issues with the IRS. We handle day-to-day bookkeeping as well as tax filings to help you avoid these issues.
Maintain a Good Business Credit Rating
Proper bookkeeping and financial management are essential for maintaining a good business credit rating. In turn, this can help you to qualify for business loans and other needs down the road.
Have a Solid Billing Strategy
Accounts Payable can become problematic for your small business’s financial management. With an effective billing strategy established and managed by JaxBooks, you can more effectively collect money owed to you.
Manage and Track Cash Flow
In order to make intelligent business decisions, you must know exactly where your finances stand. Managing and tracking cash flow is easier to do when you let our professional bookkeepers do the work for you. In fact, at JaxBooks, we go over your financial statements with you EVERY MONTH! And that includes a Statement of Cash Flows.
Establish Business Processes
The best time to establish your business processes for financial management is upfront. However, regardless of the status of your business, creating and improving processes can enhance its operation going forward.
Start Tax Planning for Next Year
Through effective tax planning, your small business can optimize deductions and minimize tax liability. Tax planning should start at the beginning of each year. JaxBooks can help you to plan for and prepare tax filings.
Manage Federal Tax Payments
Small businesses can wind up owing a small fortune in federal taxes at the end of the year. Spreading that burden out throughout the year with support from JaxBooks can improve financial management.
You can see there are tons of things to remember when you are managing your business finances. If you need help, please reach out to us and ask questions!