Accounting practices encompass much more than merely filing taxes at year’s end and making quarterly estimated payments. How you structure your business’ accounting has a direct impact on profits, operational efficiencies and more.
Here Are Five Must-Know Accounting Tips to Help Your Business Achieve Its Maximum Potential:
- 1.) Use cloud-based time tracking software to record when employees clock in and out. A cloud-based solution works for both employees who are at the office and anyone who works remotely, and there’s a variety of applications available for different industries. Once implemented, the software will make it easier to keep track of regular time, overtime, paid time off and other compensated hours.
- 2.) Have employees make approved purchases with company-issued purchase cards rather than their personal cards. Using personal cards requires paying invoices, which creates a few potential problems: submitting multiple receipts at once can strain cash flow, paying receipts individually increases work for accounts payable, and mathematic errors can be made. Purchase cards are easier to reconcile and require reviewing purchases just once per month.
- 3.) Make sure accounts receivable is diligent in their work. While you may need to be flexible with customers who truly can’t afford to pay immediately, your business also must be firm so that it collects what’s due. Without payment in the bank account, your business is losing money.
- 4.) Take advantage of Section 179 whenever your business purchases qualifying equipment or software. This portion of the tax code lets businesses depreciate qualifying asset purchases in the year they’re first used rather than over the life of the asset. Often, this results in a major tax break when you buy new equipment.
- 5.) Work with a certified public accountant when exploring accounting or tax issues. CPAs are specialized professionals who can provide sage advice, and save your business a lot of money and time.If you need assistance keeping your business on track through the current pandemic, do not hesitate to reach out to us here at Brock CPA.