Good Bookkeeping Saves Your Business Money

The business tax return deadline recently passed, so you were likely reminded of the importance of maintaining accurate records year-round. Start keeping detailed books to make 2016’s return a simpler process.Along with practicing diligent bookkeeping, you need to employ an easy-to-follow system that supports your documentation.Most CPAs strive to send an accurate return with the best bottom line tax results as efficiently as possible. When clients provide orderly books, that task becomes much easier and quicker.If you don’t use an accounting package to keep your books, your documentation for your tax return is likely inadequate. Unless you’re able to set up books correctly, keeping your books on a spreadsheet is generally insufficient.Many new and creative applications exist to assist you. If you don’t note the purpose of each payment, you’re well off the mark. The same is true for deposits.Compare this process to building a house. If you assemble all the tools and equipment onsite before beginning, you’ll likely build a better infrastructure quicker than if you run to the supply store one or more times a day as you find missing equipment.Unclear and inaccurate records require more work and time (read “expense”), and you probably won’t reap the best possible result. Remember, your good record-keeping helps your tax professional help you at tax time.Need more specific direction? We’re here to help. Contact the Patrick & Robinson CPAs team for “best practice” guidance: (904) 396-5400 or Office@CPAsite.com.