What a great time to start cleaning up your books. Believe it or not, your CPA does not look forward to being handed your stinky pile of goo from the whole past year. He's busy, with other clients, who also don't keep up their books.
Why should you do this?
- Your CPA likely bills by the hour. On average (that we've seen), it takes 2-3 hours to clean up a small business owners' books. At $200/hr, you're spending at least $600 more than you should be.
- You can forecast sales for the next year because you have a clean balance sheet, P&L, and other reports.
- You can budget expenses for the next year
- You'll know exactly how much is owed via Accounts Recievable reports, and can instantly improve cash flow.
So, what are the five things you can do RIGHT NOW to clean up?
- Reconcile your accounts by entering all transactions from the year, and matching them with your bank statements.
- Review your chart of accounts for "wacky" accounts, ones that you may have accidentally added, or that you've made double entries in.
- Clean up your accounts payables and receivable accounts. Who do you owe money to? More importantly, who owes you money from the beginning of the year and will never pay? Chasing down some easy A/R will put money in your checking account. Why not find it THIS year?
- Take Inventory. Yes, this is important. You are hopefully doing it all year, but if you missed a month or two, make sure you have it down now.
- Review your financial statements and determine if they make sense.
Need Help? Call us, or fill out the form below. It's a lot cheaper than paying your CPA at the beginning of next year.