As 2023 draws gradually and unavoidably closer, there are a handful of things that business owners may be doing that will not bode well for the year ahead. Whether you are looking to budget for the new year, prepare for taxes, or have an accurate depiction of how your business is doing at any given time throughout the year, these are a handful of practices that need to be stopped as soon as possible.
1) Not keeping receipts. Whether it’s ignoring the expenses under a certain threshold (say $75) or not keeping receipts organized or labeling them correctly can make for a mess come tax season. Those messy piles can be a pain to sort through and if you have enough expenses under your chosen threshold, they will add up. If its an accordion folder, a shoe box or a filing cabinet, keep track of everything going out…and coming in.
2) Not splitting personal and business expenses. While it may seem easier day-to-day, having separate cards and accounts for your business expenses and your personal life can save a ton of time down the road. Then you don’t have to dig back into your rolodex of memories about whether or not a coffee or meal was for work or a mid-week treat.
3) Not preparing for tax season before April. This can be a tough one, but having your ducks in a row before tax season rolls around can be incredibly beneficial. As the year goes, you can see where your business stands, where improvements can be made, and not spend all of the first quarter digging through papers and files.
4) Not having back-ups of your back-ups. If the pandemic has taught us anything, it is that business, technology, and life in general are unpredictable. Don’t be caught with empty hands when your board, your boss or the IRS comes knocking. Keep records digitally and printed, and in more than one place. It’s better to be safe than sorry.
5) Doing it yourself. If fall else fails, you always have a friend in us. We can be the extra hands, extra training and extra eyes to ensure that your business or non-profit’s books are in order in a cost- and time-effective fashion.
Which of the aforementioned bad habits are plaguing your business? Which can you work on this week, this month or before the end of the year? Can we help?