As a QuickBooks ProAdvisor and CPA, I frequently see clients that are behind on their books and they need my help to get out of a hole they’ve dug for themselves by not staying current. This means putting on my QuickBooks ProAdvisor hat to get them out of the hole and then my CPA hat to educate them on the benefits and importance of staying out of next one.
Sometimes it’s a shallow hole and they’re only behind by a month or two. More often than not, they’ve dug themselves into a deep, dark cavern by not touching their QuickBooks since last year’s taxes. If you’re one of these people you’re doing yourself (and your business) a huge disservice. While it’s easy to fall into a mindset of “Nothing needs to be filed this month so it can wait.” This can be a dangerous mindset to have. Keeping your books up to date is just as important as the other day to day tasks needed to keep your operating.
Having up-to-date financial records and reports allows you to:
- Make Strategic Plans. Do you feel like you need to expand? Are you sure you can support it? Without current financials, it is impossible to know if your current cash flow will support the expansion costs or service a loan to fund the expansion. Likewise, when deciding what products or services to focus on, you need up to date records to determine where to spend your time and resources.
- Have Effective Tax Planning. When the ball drops in Times Square on New Year’s Eve, the door slams shut on tax strategies that could affect how much you’ll owe in April. After December 31, your CPA becomes limited in the tax strategies that will have an impact in the tax you owe for the year. Before the end of the year, many more options open up. However, without seeing up to date numbers, it isn’t possible to determine the best course of action to minimize your tax bill.
- Prevent Accounting Panic. I can’t count the number of panic-stricken calls I on the day of the filing deadline from people frantic to get an extension, or to have their returns filed. Waiting until the last minute is not how you want to handle something as important, and potentially costly, as your taxes. If you keep you keep your records up to date you’ll have a much smoother spring, and April 15th will be just another day.
- And More. When you have accurate, current information on your business’ finances you’ll be able to make informed decisions that can have a major impact on the health and future of your business. Now, isn’t that worth setting aside a block of time each month to keep your books up to date or meet with your CPA?
If you’re a bit behind on your books, we’re here to help. Please call the office at 817-381-5520 or fill out the appointment request form on the website. We’ll get you caught up for this year and get you started right for next year.