Welcome to the HeadRoom Resident Guest Post series. This month we’re taking a look at year-end planning for your business. Julie Shopa of Clarity Finances explains how you can save money on taxes by looking at your numbers now.
“How could my profit be so high? I only have $XX in my checking account?”
“What do you mean I have to pay a penalty? I paid my taxes before April 15th? I didn’t know I needed to make estimated payments.”
“I see that I have a profit. How can I increase my expenses to reduce that profit without having a cash flow problem?”
Having a professional accountant review your books is a valuable step that many small businesses overlook. Many growing businesses make crucial mistakes in their accounting software throughout the year. Data might not be entered correctly or at all.
Whether you work with an accounting firm that also offers bookkeeping services, outsource your bookkeeping to another firm or do it yourself, consistent bookkeeping keeps you on track. If you are going it alone, consider having a good bookkeeper who knows exactly where to look for red flags review your work.
Some business owners might be afraid of what mistakes an accountant could uncover, while others merely do not understand the value of a professional bookkeeper. Advice from your accountant can have a big impact on the payout to the IRS next spring but timing is key. Many actions need to take place before the end of this year. Delaying that look at your bottom line can be costly.
The simple fact is that preparing for year-end can be quick and painless if you consult a professional. Let them take some of the burden so you can focus on what you do best: growing and expanding your awesome business!
About the Author
Julie Shopa of Clarity Finances works with small business owners in the Philadelphia area to develop and maintain systems that are easy to use for tracking the money coming in and going out of their businesses. Her goal is to show small business owners how to understand the financial position of their companies and the difference that it makes to their ability to succeed and grow. Julie is a QuickBooks Advanced Certified ProAdvisor with a B.S. in Finance from Penn State University. Find Julie on LinkedIn.