The first day of Spring - March 20th - is almost here. This means that we need to account for Spring cleaning. Organization and cleaning help us purge the old and make room for the new. Most people think of spring cleaning as a time to clean the house and garden, but it’s also a perfect time to clean your finances. After all, you’re already looking through your financials to do your taxes!
Review your business structure
Are your personal assets separate from your business? If not, you can set up an LLC or incorporate your company to mitigate the risk of your personal finances.
Set up a plan with a CPA
You are digging through documents, receipts, and files for tax season, why not spend a little extra time with a CPA. Meeting with a CPA and setting up a plan can help alleviate the stresses of tax season in the future. They can help you identify what is necessary to keep and where to keep it.
Dig deeper into your finances
Look into your labor expenses. This is often times the most expensive part of your finances. Looking deeper into your labor costs can help you create extra incentive goals for your employees or help limit your spending if you end up short.
Remember to pay yourself. Keep track of invoices and customer payments. Are you considered an employee, a partner, a corporate officer, or something else? Learn the different legal forms of business and how you should be paying yourself at irs.gov.
Maintain your newly organized system
Set aside 10-15 minutes at the end of each week to file, trash, and organize your files and documents. This includes physical and digital documents. Backup what needs to be saved digitally, shred sensitive document that are no longer needed, and maintain the system you put into place.
Speaking of CPA’s… we know a few. With a foundation of knowledge dating back to 1964, Schlenner Wenner can supply you with the highest knowledge and professional ability. If you would like to organize your business but don’t have the time or you feel overwhelmed, bring your receipts, documents, questions, and computer screens to us. Clean up your finances now and look forward to your company’s growing in the future.