Flying Solo - Keep Your Books Regularly

Now you've set your books up, which is certainly important.  Maybe more importantly, however, is keeping your books regularly. 

Whether you use a manual system or a program, make sure you keep your books up-to-date.  Depending on the amount of activity in your firm, this may require updating your books daily.  At the end of each day, or at the very least the end of each week, compile all of your receipts.  Enter those purchases into your bookkeeping system (use as much detail as possible so that each purchase is easily identifiable).  Keep your receipts in a specific, safe, confidential location.  This will make your life much easier when it comes time to do your taxes. 

It may be time to sit down with an accountant now, even if you are handling your books on your own.  You will want to make sure you know exactly what you can deduct on your taxes now rather than later.  It is much easier to keep track of expenses/deductions as you go rather than waiting to compile all of that information at the end of the year.  If you wait until the end of the year, chances are you will forget some things.  Forgetting expenses and deductions results in higher tax liability, meaning: you pay more money. 

Depending on your level of organization, you may want to schedule a time in your day/week to take care of your bookkeeping to make sure it does not slip through the cracks.  It is an easy task to push off but it is not an easy thing to fix when you've missed things in the past.

If you are a solo practitioner or thinking about "flying solo" and would like to talk about the process, please contact us at (804) 447-0146 or clbaudean@baudeanlaw.com.