If you own a business, then November can be pretty scary for you. It would mean that you are in the middle of the fourth quarter and you need to get your books in order. Suddenly, you realize that you have a bunch of receipts from the first quarter that you have not yet added to your books. Worst-case scenario, you cannot remember where you stored them!
This is just a short snippet of everything that could go wrong for year-end tax filing calculations if you do not make an effort to get your books on track on time. In our previous article, we discussed in detail the necessity of keeping your financial records updated. Read it here: Advantages of updating your accounting records. Today, let us talk about the way out, in case you failed to manage your books all year-round.
If you hire a bookkeeping and accounting services firm to manage your account bookkeeping, they could certainly save you from this last-minute nightmare. Here are 5 ways in which bookkeeping firms can get your financial records on track to make the tax-season a breeze for you.
Organize your Financial Records:
When the year-end ruckus approaches and you still have no clue about your finances, you should get yourself a bookkeeping partner to help you arrange your records and updates the books. All you need to do is fetch all your receipts from the entire year, download your bank statements and provide all the necessary information to the outsourced firm.
Bookkeeping services firms then organize your records by separating income and expense receipts month-wise. You will instantly receive a chronological data of your finances and hence, better visibility into your business transactions.
Greater Visibility into your Income:
Handling complex transactions is not everybody’s cup of tea. Professional bookkeepers who provide bookkeeping and accounting services take all your monetary data and maintain a general ledger of records.
They do all the work of calculating your business’s income throughout the year, which in turn can save you from failing to pay your dues when the tax season approaches. In simple terms, when you know your exact income, you can asses your if your tax liability has increased or decreased since last year and hence, be prepared to pay the correct amounts due.
Be Up-to-date with Tax Deductions:
According to a study conducted by Clutch.co, almost 1 among 3 small business owners feel that they are overpaying their taxes. When you do not have a clear view of your business finances, there is a high chance that you will end up paying more than you needed. This happens when you are not aware of the latest tax deductions and laws that are being formulated in your favor. Bookkeeping services for small businesses can save you from paying more if you choose to hire them on time.
Such firms employ highly-qualified bookkeepers, accountants, and CPAs whose job is to help their clients save as much money as possible when the time comes for tax filing. While calculating your tax liability, accountants at bookkeeping services firms can quote the accurate amount that you are not required to pay.
Reconcile your GST Ledgers
Before the year ends, businesses need to input all their financial data on the online GST portal run by Government. For this to be possible, account bookkeeping service providers help in the immediate reconciliation of cash, credit, and liability ledgers.
All of this is done with advanced accounting software to make the process fast and smooth. If you choose to go forward with the finance reconciliation process yourself at the last moment, there is a big chance that your data might be inaccurate.
Separate your Personal and Business Financial Records
Small business owners make the common mistake of not separating their personal and business expenses. If you fail to do this, you will be held personally liable for your business’s debts and actions. Even for corporate businesses, you would have to pay up or be fully liable for your company’s losses.
Partnering with a bookkeeping services firm can be a great decision when you find yourself stuck in this situation at the last moment. Such agencies help you sort through all your transactions and separate these expenses to create a clearer picture of your business’s financial situation.
Still confused between in-house and outsourced bookkeeping services? If you are a small business owner, this article will help you get out of the predicament: In-house versus outsourced bookkeeping: what works best for small businesses?
Bookkeeping Services in Singapore
If you own a business in Singapore and have absolutely no idea how to get yourself prepared for the tax season, talk to experts at PikoHANA. With seasoned bookkeepers and accountants, PikoHANA assures you that your finances will be in the best hands possible. Experts at the agency can handle complex transactions and successfully manage business budgets while also helping you with comprehensive insights into the financial condition of your business. So, if you are tired of doing your own bookkeeping, let PikoHANA help!
Here is a snapshot of all the common business challenges that PikoHANA helps solve apart from providing bookkeeping and accounting services.
As a business owner, there are diverse variables that you have to handle on a daily basis. To state it plainly, it is only normal to keep pushing your bookkeeping task towards the back burner. But when the time comes for tax filing, you can easily find yourself in a mess! Without a proper understanding of your business’s finances, you can never file for tax deductions judiciously or make informed growth decisions for your company.
The best way to save yourself from this added frustration is by partnering with a bookkeeping and accounting services firm right from the beginning. Doing so, will not only relieve you from the burden of maintaining your own books but will also enable you to focus on running a successful business.