If you own your own business, you are most likely very confident in your craft. While owning a business can be rewarding, top female entrepreneurs also know the challenges of owning your own company.
Accounting doesn't have to be another issue. Streamlining financial tasks will save you a lot of time. It will also help you to evaluate your progress and areas of opportunity. Also, it will make it easier for banks and investors to place a value on your company, making it faster and easier to attain financing.
Mixing bank transactions makes it difficult to decipher business versus personal expenditures. It also impedes you from figuring out how much money your business has or does not have. Having a separate business checking and business savings from personal accounts gives you a true snapshot of the liquidity available to your company. This is vital when it comes to looking for outside investors.
Together with your CPA, determine your state and federal business tax percentages. A best practice of top female entrepreneurs is saving for their taxes all year. Whether you pay quarterly or annually, the peace of mind you will have knowing you are financially prepared for your taxes is priceless. Transfer your tax percentage savings to a separate business savings account as soon as your invoice is paid and cleared.
Keeping a detailed record of all outstanding and paid invoices, expenditures and tax savings will greatly help you with your year-end statements. Start by logging all sent invoices in an accounts receivable section. Then, as invoices are paid, add them to your gross monthly income. Secondly, detail every expense as well as file the receipt for safekeeping. This will help with monthly budgeting, as well as your end of year taxes as you classify any potential write-offs. The top female entrepreneurs know that details are key.
Creating and sending invoices in a timely fashion is critical to your cash flow. Once you create an invoice, send it out as soon as possible. Then, keep track of all outstanding invoices on a weekly or bi-weekly schedule. This ensures you will stay aware of anything that goes unpaid for a month or more. Each time you follow up with a client, make a note for good record keeping. It also sets the expectation with your clients when payment is due. Setting clear expectations and deadlines makes for a good working relationship between you and your customers. All outstanding invoices should be accounted for as accounts receivable and can be important to your overall business value.
The top female entrepreneurs know the extra hours a business owner has to put in to organize bookkeeping. This is valuable time you could be spending on growing your business and focusing on your trade. Outsourcing your bookkeeping and taxes is a worth-while investment for a couple of reasons: It allows you extra time to focus on what matters the most to you, and it protects you and your business from tax penalties that can severely damage, if not ruin, your business. Tax laws and forms are ever-changing. Hiring a CPA firm to help you file your taxes limits your exposure to tax penalties due to filing errors and missed deadlines.
Fusion CPA firm is a diversified accounting group dedicated to helping top female entrepreneurs achieve their business goals. We focus on taxes, bookkeeping and business advisory services with accountability as a cornerstone of our company. We are committed to helping you understand the financial facets of your business.
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