If ‘death and taxes’ are the two things for certain in life, then procrastination has to be right up there as well, as business owners hop on board the tax-planning wagon.
Unfortunately, for business owners, it often comes down to the obvious and the little things: pledging to keep better records and seeking good advice during the year. Don’t wait until its crunch time!
In fact, an overview by Peter Karpas, CEO of an accounting software firm, lists a number of common mistakes and missteps, and he ranks poor financial recordkeeping right at the top. Using financial tools in the cloud offers a solution to keeping up with the tasks, and you can access your work, generally, off-premise via your laptop or digital devices.
Other areas that need constant vigilance include:
Budgeting and Forecasting
Too many businesses fail to do annual budgeting and forecasting: it’s critical throughout the year to have a benchmark with which to compare your progress: short-term and long-term.
Meet regularly with accounting pros…
Karpas points to a recent survey of 400 accountants conducted by a consulting company, Zogby. It found that 65 percent of the accountants, indeed, recommended financial checkups at “least once per month;” using a firm who offers business financial services will keep the company in “good financial standing.”
The Proverbial ‘Mixing’ of Business and Private Expenses
Keep it separate, notes Karpas. Make sure you’re getting all the right business deductions, including write-offs for business meals and travel expenses.
What’s more, don’t “over indulge” to the point that too many deductions will bring the IRS to your door.
If your business might benefit from outside financial services, please contact us to learn more.
