How a Bookkeeping Cleanup Can Help You Save Money

 

Many small business owners start out doing their own bookkeeping. For most, it makes sense at first. You’re working on very small margins and trying to figure out exactly what your business structure and strategy are going to look like. You’re often also trying to find vendors, figure out staffing, and working to create something brand new. 

 

If you’re a small business owner and recently went through your first or second tax season, it may have taken you a lot longer than you wanted to get through all of your books. The good news is that a bookkeeping cleanup can make next year easier and help you save more money in the meantime.

Get a Better Look at Your Company History

The best way to make informed decisions about your company’s future is to start by examining its past. You need to take a solid look at your expenditures as well as your income and make sure that everything matches up.

 

Understanding your financial history can help you answer critical questions like…

 

  • Are your clients paying on time?
  • Are your vendors over-charging you?
  • Are you undervaluing your products or services?
  • Have your credit cards been paid on time?
  • Do your earnings match your tax returns?

 

The more you understand about your cash flow, the better chance you have of turning a strong profit in the future. Updating this documentation on a regular schedule is the ideal way to keep track of everything but if you know you haven’t checked it in a while, it’s important to sit down and do a bookkeeping cleanup.

Identify Tax Break Opportunities

Small and medium-sized businesses have a variety of opportunities for tax write-offs, deductions, and even credits. However, if you aren’t keeping close track of all of your financial documents, tax time can end up being financially devastating.

 

As long as purchases took place within the last year, your bookkeeping cleanup can help you identify money saving opportunities so you can focus on putting the money you would have put towards taxes back into your business.

Pin Down Discrepancies

Nearly every company’s books have discrepancies. Human error is unavoidable. However, you’re a lot more likely to have large discrepancies if you’ve never done a bookkeeping cleanup before or if you don’t regularly review your company’s financials. 

 

These discrepancies have the potential to cost you thousands of dollars, especially if they show up on your invoicing, credit card, or bank statements. You may discover that you were never paid for a project or that you missed a credit card payment and suddenly owe late fees and are subject to a rate hike. Ultimately, you want to avoid any of these situations.

Get Help with Your Bookkeeping Cleanup

Taking the time to go back through all of your books takes away from opportunities to build your business, but that doesn’t mean you should ignore it. Instead, you should reach out to a professional who knows exactly what they’re looking for.

 

At PL Consulting, we have a tried and true process for bookkeeping cleanup. We’ll tailor this to your organization’s needs so you can get started saving money right away. Our team is dedicated to helping you come up with a plan that will work for you — and we won’t stop until you’re completely satisfied. Questions on how we can help? Give us a call today at 410-764-3731 or contact us here

5 Tips for Small Business Bookkeeping

 

Keeping track of each and every business expense is not a simple task, especially if you aren’t a numbers person. Small businesses may not always have a financial expert on the team, but bookkeeping is necessary for keeping business on track. Using proper techniques can help make bookkeeping easier. Here are five tips for small business bookkeeping!

 

Separate Business and Personal Finances

 

Though you may have started your small business with personal finances, you want to create a separate business account as soon as it gets off of the ground. Mixing business and personal finances make it difficult to keep an accurate track of business expenses. It’s also a good idea to get a separate credit card for your business to further separate finances as well as build your business credit.

 

Keep Records of Business Expenses

 

Modern technology makes it easy to keep all of your business expense records in one place. Rather than having to hold all of your paper receipts, receipts can be scanned and digitalized onto your device. Keeping these records helps to analyze business progression and also allows you to see what expenses can be deducted from your taxes.

 

Automation

 

There are several software applications designed for bookkeeping and other accounting services. Cloud-based software gives you access to your financial information from multiple devices. It also keeps your data backed up in case of a technical malfunction. Handling your business banking online allows you to sync bookkeeping software with your bank account so that you always have accurate and current financial records.

 

Hire a Professional

 

If your budget allows it, hire a professional accountant to help you maintain your business finances. Though this will be a financial investment, it will help you save and manage your money better in the long run. A professional will be able to assist you in finding the best software for your business and offer advice on how to use it. If you want consistent help managing your finances, a long-term accountant will provide continuous services to ensure the most success possible for your business.

 

Quarterly Review

 

Keeping track of your business expenses isn’t enough to make it grow. It’s important to analyze the data that you are reporting so that you can see what’s working and what needs to be changed. Each quarter, do an in-depth evaluation of your financial records. Look for things like growing or declining sales, the number of late-paying customers, and the amount of revenue. Come up with a plan each time you review to improve sales and revenue while eliminating unnecessary expenses.

 

Contact PL Consulting Today for Your Financial Services!

 

At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax preparation, budgeting, and more.

 

Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.

 

To book PL Consulting today or get more information, contact us at (410)-764-3731 or at https://www.plcfo.com/contact/

 

The Four Elements of Bookkeeping

Bookkeeping is essential to keeping your business finances organized and accounted for. A bookkeeper is responsible for keeping track of each and every financial transaction that takes place within your business, both ingoing and outgoing. This allows you to see exactly where your money is going and plan budgets accordingly. Here are the four elements of bookkeeping!

Accounts Receivables

The accounts receivable refers to the money that is coming into the business. Your bookkeeper should be sending some type of invoice to clients for all the services that you’ve performed for them. This invoice shows all the necessary costs that the client is required to pay to your business.

 

The bookkeeper keeps track of all incoming payments from clients, marking them down as deposits are made. Your bookkeeper also takes on the responsibility of following up with any clients that may be behind on payments.

Accounts Payable

Though businesses may not be too excited about accounts payable, it is still crucial to keep track of it. The accounts payable refers to the bills and expenses that your business has to pay to others.

 

A good bookkeeper will keep track of each and every outgoing payment your business needs to make. This helps you keep track of what you owe so you can determine the best system to make payments that maximizes your cash flow.

Bank Reconciliations

Your bookkeeper is responsible for regularly going through all of your bank and credit card transactions. They ensure that all your statements stay organized and sort them out so that they’re always easily accessible.

 

Bookkeepers also go through to make sure there are no duplicate transactions documented which could impact your business finances.

 

Once they’ve entered all your card transactions, they will go through to make sure that each account matches up with their bank statements and there’s no discrepancies.

Payroll

A good bookkeeper doesn’t only keep track of your accounts, but can also keep track of your payroll as well. Having someone operate your payroll saves you so much time, allowing you to focus on other important elements of business.

 

Your bookkeeper will keep track of your employee’s work hours, days off, commissions, etc. Once all of this is entered, the finished form will be sent to your management team for final approval and then payroll will be completed from there.

 

Your bookkeeper will keep track of this information and prepare tax documents for employees during tax season.

Contact PL Consulting Today for Your Bookkeeping Services!

At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax preparation, budgeting, and more.

 

Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.

 

To book PL Consulting today or get more information, contact us at (410)-764-3731 or at https://www.plcfo.com/contact/

The Best Bookkeeping Software for Small Businesses

When it comes to small businesses, each person likely has multiple roles and responsibilities. The good thing about this modern age is that a lot of things have gone digital, making business tasks easier and more convenient. Bookkeeping software allows you to digitally keep track of your finances and most also provide accounting features. Here are some of the best bookkeeping software for small businesses!

FreshBooks

This bookkeeping software is great for those who send out repeated invoices or need a time tracking feature. Freshbooks can easily be integrated with other business applications so that they can all be accessed from one place.

You are even able to see the location where your customers opened their invoices so that there is documented proof that it was received. Freshbooks has a mobile app that allows you to keep track of your bookkeeping information no matter where you are.

Sage 50cloud

Better for small to medium sized businesses, Sage 50cloud can send invoices, track in and outgoing transactions, and even calculate what you will owe at tax season.

These features are great for tax planning and maintaining your budget. With this bookkeeping software, you are unable to track time and it does not have collaboration tools.

Xero

For those that are always on the go, Xero is a great bookkeeping software. You can customize and send invoices, track your inventory, and create purchase orders all from your mobile device.

This convenient software can send financial reports to your device and easily connects to your bank account. One thing Xero doesn’t offer is live support, which can be inconvenient when troubleshooting.

Intuit QuickBooks

The great advantage that Intuit QuickBooks has is its ability to integrate with PayPal, Shopify, and Square, making it so much easier to track payments.

There are several different plans to choose from, but they all allow you to track your business income and expenses, send invoices, receive payments, run financial reports, and organize receipts. If you opt for a more advanced package, you can track time, inventory, and run payroll.

PL Consulting for all Your Financial Needs!

At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax management, budgeting, and more.

Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.

To book PL Consulting today or get more information, contact us at (410)-764-3731 or at https://www.plcfo.com/contact/

Bookkeeper vs. Accountant: Which One do You Need for Your Business?


One of the most important aspects of any business is finances. Without proper money management, a business can’t be successful. It is always an option to handle the financial aspect of your business on your own, however it can be a very complex and time consuming task.


There are several different types of financial professions that are designed to help your business prosper. Often times, people often consider bookkeeping and accounting one profession, however they are different and both are vital to your business success.


Here is the difference between a bookkeeper and an accountant so that you know the role each one plays for your business.

Technology’s Influence

With the new age of technology, the thin line between bookkeeping and accounting is disappearing slowly. There is now a variety of bookkeeping and accounting software that makes these tasks easier for professionals.


Majority of bookkeeping software includes financial statements and analysis, which further confuses the definition of the two professions.


A lot of financial companies are transitioning to using digital software and resources to complete these tasks, making them more efficient and creating an ease of access to all financial documents.

Although these two professions are starting to merge together with technology, there are still key differences that are important to know when running a business.


Bookkeeper

Compared to an accountant, a bookkeeper has a more active role in the day-to-day financial responsibilities of a business.


They take care of the elements that keep the business up and running, which include things like creating invoices, keeping track of billing, running payroll, and creating general ledgers to document all transactions.


The core skill focus of bookkeeping is data entry and coding. They must ensure that all financial data is correct and coded to the right accounts so that financial information is both accurate and easy to access.


Accountant

Though accountants also deal with the ongoing finances of a business, the main difference is that they typically handle the finances that are already finalized and closed out.


Bookkeepers maintain current and active records of financial transactions, while accountants take those records and translate them. They interpret the financial data that the bookkeeper documents, compiling the information into financial reports.


These reports give businesses an idea of their financial progress and current standing. This helps to analyze the growth of a business and gauge any changes that may need to be made for improvement. Accountants also handle the tax portion of a business, providing tax planning and advice.


In short, an accountant and a bookkeeper complement one another in the financial world. They are both equally important to the success of any business.


Bookkeepers maintain an active record of all business transactions, while accountants interpret the records and act as financial advisors for businesses.

PL Consulting for all Your Financial Needs!

At PL Consulting, we consider our clients part of our team. We provide full financial management services including bookkeeping, accounting, payroll, tax management, budgeting, and more.


Serving the Baltimore area for several years, we are dedicated to providing customized service to fit each and every one of our client’s unique needs.


To book PL Consulting today or get more information, contact us at (410)-764-3731 or at https://www.plcfo.com/contact/

 

Why Your Small Business Needs a Bookkeeper

Bookkeeping is essential for any small business to thrive

Business owners are multi-talented, but they aren’t the masters of all trades. Therefore, it’s essential that a small business has different departments so that employees have a clear role. Some employees are excellent when it comes to sales and others perform well in regards to administrative tasks. But what about the bookkeeping?  Bookkeeping is essential for any small business to thrive. Therefore, you should hire an entrusted individual or top bookkeeping firm like PL Consulting to make life easier for you. It’s a component of a business’ upkeep that you shouldn’t neglect. Keep reading for some for the top reasons why you need a bookkeeper.

Continue reading “Why Your Small Business Needs a Bookkeeper”

Bookkeeping Tips

Who accounts for all the transactions of a company?
You may have guessed a bookkeeper and you would be right.
A bookkeeper can provide financial reports, manage customer receipts, provide tax information to the government among a multitude of other tasks.

Let’s think about a hotel for example. It takes several key components and key players to make a hotel run smoothly. Booking agents are needed to manage the reservations. Maintenance crews help to repair any damage done to a hotel while janitorial staff helps the hotel to look clean and pristine. If a restaurant sits inside of a hotel, there is also staff to help cook the food and serve guests. These components are all front facing but what about behind the scenes? Who accounts for all the transactions of a company?

You may have guessed a bookkeeper and you would be right.

A bookkeeper can provide financial reports, manage customer receipts, provide tax information to the government among a multitude of other tasks. Keep reading for more detail of what bookkeeping entails and planning strategies for your small business.

Continue reading “Bookkeeping Tips”

3 Simple Tax-Filing Tips To Follow For Your Small Business

We are approaching the end of the year, which means right now is the perfect time to get all of your tax information in order.  If you are a small business, it is essential that you file your taxes on time so that you avoid any penalties.  Paying your taxes late can result in you getting in serious trouble with the IRS. PL Consulting can assist you with filing your taxes and make sure that you submit all of your forms before the deadline.  Luckily, there are a few simple tips you can follow when it comes to filing taxes for your small business.

Learn how to file your taxes for your small business.

Continue reading “3 Simple Tax-Filing Tips To Follow For Your Small Business”

Which Payroll Software Best Suits Your Business?

Payroll Software
The right payroll software for your business will depend on a number of factors. Learn some of your options below!

Streamline your company’s internal finances with a payroll software. Whether you are a large corporation or a small business, a payroll software is an essential ingredient for success. Modern and efficient, it organizes all important documents and manages employee pay periods. When business picks up, the payroll software will provide valued guidance with detailed financial reports. It is the unsung hero in the HR department. Selecting which specific program best suits your business model is one of the most important payroll management decisions. With a wide array of options available, three software programs have emerged as top competitors:

  1. Gusto
  2. OnPay
  3. BambooHR

Weigh the pros and cons of each payroll software to identify which program would mesh the best with your business. Keep in mind, each company is unique and presents distinct needs. Platforms designed for large corporations may prove to be incompatible with smaller businesses. Know your business and select the program that will provide the most support. Continue reading “Which Payroll Software Best Suits Your Business?”

How To Choose A Bookkeeper For Your Business

Learn how to choose the perfect bookkeeper for your business.

As a business owner, there might come a time a when you need help with your finances, especially if you have just got your business off the ground.  You might not have the time to keep track of every expense, so it is best that you hire a trusted source to handle your books.  You want to hire someone you trust that manage your cash flow as well as helping expand your business.  If you are in need of a bookkeeper, there are a few simple tips for choosing an individual handle your finances. Continue reading “How To Choose A Bookkeeper For Your Business”