Spring Cleaning for Your Books
Spring cleaning for your books might sound like the worst thing ever to any creative person, but if you run your own small business, it unfortunately is a must. Freshening up your books is imperative to keeping your business afloat AND helpful in keeping the IRS auditors at bay.
Whether you’ve just opened your start up business, or you’ve been running it for years, I know any business owner can get down with that! And besides, a refresh of your books will ensure the success and financial growth you desire. Who wouldn’t want that?!
Clean Up Your Accounts Receivables
I feel like any creative start up business owner can agree, missing out on money is an absolute no-go. That’s why this step in spring cleaning for your books is not something you should avoid.
By neglecting to freshen up your accounts receivables, you may be missing out on money owed to you by clients. Just like you don’t want to be in bad standing with any of your vendors, you don’t want any clients in bad standing with you! Take some time and send out friendly reminders to clients with tardy invoices. And if you have some really late payers, it might be time to look into employing a collections service to get that cash flow coming in.
This is also a great way to weed out those clients that don’t respect your time and creative energy. Running your own small business is no easy feat, so don’t waste your time dealing with people who don’t want to pay you what you’re worth – on time and in full!
Automate Your Bookkeeping
I already know from working with fellow creative people in their start up businesses and small business ventures that this can be a daunting task.
When it comes to creating beautifully staged photos for expectant mothers or jazzing up a client’s website design, you got this down to a science. But when it comes to managing the back end of the business, it might prove to be a little more difficult. And that is totally understandable! Luckily for you, there are SO many different software and app options out there to help you get this item done.
Software like QuickBooks Online can substantially minimize your bookkeeping tasks by making it so you’ll forgo the manual entering and just start double-checking your transactions. QBO has a bunch of add-on features to quicken things up as well, like invoice scanning apps that automatically pull all the important info from your emails and import it directly into your AP ledger.
It’s important to make sure you are well trained on whatever program you choose to use to automate your books. Understanding how to keep it updated and functioning properly is a job all on its own (and you always know you can hire me to do it 😉).
Review Expenses
While performing the spring cleaning for your books, it’s always a good idea to take a look at what you spent last year on the things that make your business function. By pulling a Profit and Loss statement, you can do just that!
Sifting through your expenses line by line may not sound glamorous, but it will illuminate ways you might be able to save money. By cutting out certain expenses you either may not use or, after assessment, expenses the company doesn’t need anymore, you’ll be saving money with the click of a button!
I think we all can agree we’ve forgotten about a free seven-day trial subscription... or ten. Unknowingly paying for weeks (or months... whoops!) without even using the thing you subscribed to. Be sure to check for these in business expenses, too!
Figuring out what expenses are necessary will save you money you can reinvest back into your small business. It can also prepare you for unplanned financial needs, like expanding your office space, increasing staff, or adding a separate work phone line to your plan if your clients like to call after hours way too often.
Consult a Professional
There is so much to know when it comes to bookkeeping, and let’s be real: with all the creative juices going into your small business, you don’t have the time for the research it takes to actually become the best bookkeeper you can be.
Tax laws and your specific tax obligations may shift and change, and unless you’re checking the IRS website daily, it’s hard to keep up with changes that may affect your business. That’s why hiring a professional, in whatever capacity you can, will help you stay on top of the ever changing world of taxes.
Consulting a pro can be as easy as a one-time payment for QuickBooks Online set up. This task alone will get your start up business organized and running like a well-oiled machine in no time! Plus, it’ll make spring cleaning for your books an absolute breeze next year.
Closing
As someone who’s been doing this for years, I understand that any small business owner might find bookkeeping tasks difficult, especially without years of training. And although it might be painful to hear, you need a solid bookkeeping routine.
But luckily for you, this spring cleaning for your books blog will get you headed in the right direction! And don’t worry, there’s plenty of software and people like me that can make your bookkeeping easier, so you can focus on the creative aspects of your start up business.
