End of Year Bookkeeping Tips: Preparing for 2021

 

We are quickly approaching the end of 2020. This year many construction companies, small businesses, and restaurants lost money due to COVID-19. The upcoming year is a fresh start for everyone. With these bookkeeping tips, you can stay optimistic and improve your business after the pandemic.

 

Now is the perfect time to sit down and analyze your business finances. Create a plan to save money, increase profits, and ensure success. Stay prepared for the upcoming year. Follow these bookkeeping tips to end the year smoothly and plan for 2021.

 

bookkeeping

Submit Tax Forms

Although Tax Day (April 15, 2021) seems far away, you want to give your accountants time to file tax forms. Try not to wait until the last minute in case you need to fix any information. Additionally, these common mistakes on your taxes should be avoided. 

 

Gather important information from your vendors. This includes their name, address, and tax ID number. If your business works with 1099 contract workers, be sure to prepare and submit those forms by January 31, 2021. 

 

Bookkeeping: Plan a 2021 Budget

Create a new budget for the year based on the previous year. Keep track of what your money is going towards. Budgets put you in the right standing and prevent you from spending money on unnecessary products and services. 

 

If you are looking for new vendors, do it at the beginning of the year when they are giving out discounts for new customers. The right vendor will be reasonably priced and provide quality products to your company. Make note of the vendor expenses so you can make your payments on time. 

 

Bonuses and Holiday Gifts

You might still have room in your budget at the end of this year to give back to your hardworking employees. If you decide on using that money towards an end-of-the-year bonus, keep in mind that taxes are involved. These are taxed differently than normal paychecks. Check with an accounting professional if you are unsure of tax laws.

 

There may also be room in your budget to purchase holiday gifts for employees, customers, or clients. Although you may want to gift them with something expensive to show your appreciation, remember that you have a budget for a reason. Choose gifts that they will enjoy while staying within your means. 

 

Set and Review Bookkeeping Goals

Measure the success of your yearly goals. You may need to reevaluate or work on some goals. Use these as benchmarks for the next year. Remember that your goals can be quantitative and qualitative. Measure sales, financial statements, customers, and the satisfaction of yourself and customers. 

 

Get Ready for the New Year

PL Consulting hopes that you enjoy the holidays. Use these business tips to end the year strong and prepare your business for the new year. 

 

Do you want to learn more about bookkeeping, budgeting, taxes, or goal setting? We are here for all the questions you have as a business owner. If you would like to set up an appointment, call us at 410-764-3731.

 

6 Book Recommendations to Learn Small Business Bookkeeping Basics

 

Small business owners do it all. Keeping track of business expenses is just one of the many tasks. If you are not a numbers person, this may be difficult. Small businesses often close their doors during their startup years. Bookkeeping is necessary to keep your business running by making sure that everything behind the scenes is moving smoothly. Here are 6 book recommendations to learn small business bookkeeping basics.

To get you started, bookkeeping is primarily broken down into 4 components: 

  • Accounts receivable

  • Accounts payable

  • Bank reconciliation

  • Payroll 

 

Here is our expert opinion on book recommendations to learn bookkeeping basics for your small business

 

bookkeeping

Deducting The Right Way: Untangling Small Business Accounting & Taxes

The authors of this book work with small businesses, so they have learned a lot over the years. This book has information on taxes, bookkeeping, business management, and so much more. Tax deductions can get confusing. Find out why deducting the right way helps you operate a more profitable business venture.

 

Quickbooks: A Beginner’s Guide to Bookkeeping and Accounting for Small Businesses

Quickbooks has many benefits for small businesses. Learn about how to set up your Quickbooks account, whether it is old or new. Streamline your business and develop efficiency. You will become a more competitive business using the information discovered in this book. 

 

Full Charge Bookkeeping, HOME STUDY COURSE EDITION: For the Beginner, Intermediate & Advanced Bookkeeper

This book is written by a CPA that worked his way up through bookkeeping positions. It is a good reading source for bookkeeping at any level. The glossary in the back makes it easy to find anything that you are looking for. 

 

Small Time Operator: How to Start Your Own Business, Keep Your Books, Pay Your Taxes, and Stay Out of Trouble

This startup-guide covers everything you need to know about being self-employed. There is information that you might not of known about licensing and permits. Taxes and avoiding the IRS are other topics that are talked about.

 

Accounting Principles: The Ultimate Guide to Basic Accounting Principles, GAAP, Accrual Accounting, Financial Statements, Double Entry Bookkeeping and More

Managing your business finances correctly and efficiently can mean the difference between business success and failure. This book discusses accounting methods, budgeting to make it big, payroll accounting, and much more.

 

Bookkeeping Basics for Entrepreneurs: Taking the Mystery Out of Your Company’s Financials

If you are feeling overwhelmed about bookkeeping for your small business, this is the right book for you. There are quick and easy steps that will help you simplify your bookkeeping. All the accounting terms are straightforward and uncomplicated. 

 

Small Business Bookkeeping Basics

Laws related to bookkeeping are always changing. It is best to ask a professional if you are unsure or cannot find the answer yourself. 

 

PL Consulting is not your everyday bookkeeping firm; it is a tailored answer to all of your bookkeeping needs. We believe in customizing your experience with specialized and professional services, while also offering support for future planning and productivity. 

 

If you would like to set up an appointment, call us at 410-764-3731 or book a time with us at https://calendly.com/michaelplc.

 

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”