Accounting for Small Business, especially for any creative person I know may be your biggest stressor. Crunching numbers can get overwhelming. But without the proper preparation and tracking not having the right cash flow can be the difference between you being a thriving business and closing your doors.

Whether you’re a DIY or have a bookkeeper helping you. Getting ready your monthly bank reconciliations is a big part of getting ready for tax season. Here are some tips for getting your small business ready for tax time.

Separate personal and business income and expenses

Make your bookkeeping easy and avoid mixing business and personal income and expenses. It’s much easier to track business income and expenses in a separate bank account.

Use small business accounting software

If you are still using receipts and spreadsheets you are wasting your time. The best way to get your small business bookkeeping under control is to use small business accounting software. I recommend QuickBooks.

Download transactions from your financial institutions

Once you start using small business accounting software, save even more time by downloading transactions from your bank and credit card companies. Be aware that most financial institutions will not download transactions older than 3 to 6 months. Therefore, you should avoid waiting till the last minute to download transactions.

Getting your bookkeeping caught up, cleaned up, or reconciled

If you’re bookkeeping is a mess, if you haven’t updated it in several months, or if your accounts need to be reconciled then I suggest that you seek the help of an expert. You’ll see that it’s worth it to pay a professional to help you to get your bookkeeping done timely and correctly so that you can get your taxes done on time. Give me a call, I’d love to help you!