Are You a Bookkeeping Procrastinator?
“Why do it today if you can put it off ’til tomorrow?” These are not the best words to live by, but sadly, they often ring true. Most of us have so many things to do each day that we just can’t do them all and some things just have to wait until tomorrow. If you are a small business owner, keeping your books current can definitely be a task that you put off. Unfortunately, when you put off bookkeeping—not just until tomorrow—but longer, maybe until the end of the year, it almost always costs significantly more money and time.
Save Money by Staying Current
It is actually less expensive to do your bookkeeping on a regular basis instead of trying to do it all at once. This is true whether you outsource it or you do it yourself.
When you leave all the bookkeeping to do ’til the end of the year, it is generally a mess, and messes cost more to clean up. For example, check stubs that you did not fill out completely in January are hard to remember in December. You’ll have to take extra time to do some research to figure out the missing information.
Additionally, if you find a bank error on a bank statement, it takes longer to clear it up if the records are already archived at the bank. If you run into too many problems, it might actually delay your filing beyond the tax deadline, which could result in penalties and interest.
Plus, if you don’t pay estimated tax payments quarterly, you will not only have a big tax bill to pay at the end of the year, but you will incur penalties and interest.
Save Money by Planning Ahead
Another cost saving-benefit of staying current with your bookkeeping is the ability to plan ahead. For example, if it looks like you are going to make a sizable profit for the year, you can lower your tax liability by purchasing deductible equipment or inventory before the end of the tax year.
You could also delay billing at the end of the year so that income doesn’t show up in your books until next year, or you could pay some of your bills (that aren’t due until the next calendar year) early. This would subtract more expenses from your bottom line.
Outsourcing Your Bookkeeping Needs
If you find that you are procrastinating with your business bookkeeping, you may find it helpful to outsource some or maybe all of the bookkeeping. This is a popular option for small business owners because it’s cost effective, accurate, and means you are always current.
Contact PHB CPAs for Bookkeeping Services
PHB CPAs is one of the leading Nashville CPA firms in middle Tennessee. If you are searching for accounting firms in Franklin, TN to help with your monthly bookkeeping services contact us at 615-750-5537 to learn more.