The contest is over and we have a lucky winner, Elizabeth in Austin, Texas. Yahoo! So...if this whole contest thing has made you think more seriously about having a mentor, drop me an email and let's talk!
2016 may be days away from its last gasp but for accounting professionals, we're just about to start our deep dig and clean up of the outgoing year. Even if you're stressed about not having your act together in 2016, it's not too late. Bookkeepers like myself have the month of January to get 2016 tidy and together for CPA's and Enrolled Agents to file taxes.
Take a deep breath and give a bookkeeper a call and look forward to facing 2017 a little more organized. You can do it, let me help!
Around this time, every year, I spot trends among my small business clients. Of course, there are those who are always late to the tax party. This year I'm seeing something a little different and I think it's being driven by the SAS (service as software) trend in accounting.
Bookkeeping is automatic!
I get it, bank downloads, data just falling into place. I see the TV ads and all of the new bookkeeping cloud-based software. It looks awesomely easy, and really, compared to what was only a few years ago, it is. What it is not, is bookkeeping.
If it were as easy at that, we'd all still be using Excel workbooks to track our financial data. But we don't, and the reason is that it's really hard to find mistakes. So now we have wonderfully user friendly accounting software out there at a great price. However, if you don't know where the "pieces" go, you've got a bowl of number soup.
Will accounting ever be completely automated? Probably not. Why? Beca…
Chances are, you came away from your tax preparation meeting with your enrolled agent or CPA with an accounting "to do" list. Some of the items on your list might be:
Categorize reimbursable and reimbursed expenses.Separate meals when you're traveling from client entertainment meals.Track loans to and from LLC members.Do an inventory countCreate "classes" to track different kinds of clients
Getting the detail you missed in the previous year is one of the best changes you can make in your accounting system. The thing is though, it's the fourth month into the year already! Unless you've already locked in your first quarter financials, you can still make some changes before you close Q1 2015.
You probably don't need to toss out your entire bookkeeping system, even if it may seem pretty flawed right now. If your accountant gave you journal entries to make, do those right away. That should get your basic balances in order.