The Basics of Bookkeeping with an Eye on 2020
Some Things Change
It sure has been a whirlwind few years and the changes seem to be coming faster and faster. It is important to gear up for the upcoming fiscal year starting on October 1st. We will take a look at some important habits to have with our bookkeeping and note any upcoming IRS changes and how that can impact how we monitor our accounts and financial files. We must take a brief pause here to note that due to the once in a lifetime pandemic Covid-19, taxes for the last fiscal year have been affected. The IRS has extended the filing date for the fiscal year 2019 from April 15th to July 15th (although still encouraging people to file as soon as possible). While there is no word on whether something similar is in consideration for the current fiscal year, it is important to stay on top of bookkeeping. With the continuing developments of the pandemic, keeping track of finances is more important than ever.
Some Things Stay the Same
When the economic landscape in a state of flux, the most important key to bookkeeping is that you remain consistent. If your business utilizes a manual spreadsheet program to keep track of your accounts and turns them into an accounting firm or uses a program that does things more automatically, you must ensure system integrity. Using the same accounting units and turning pertinent documents in at regular intervals (whether it be per fiscal year, quarter of even month) will avoid any sticky situations. This necessary consistency extends to your entry method. Although double-entry is advised for businesses, especially those of complexity, if you do go with single entry, make sure you stick to it. Also, make sure that you are balancing your books regularly. Having to go back and do this months after the fact will lead to confusion. It makes it much more difficult to figure out the state of your accounts. Finally, all this will be made easier by diligently recording every transaction that has a financial impact on your books. Keeping receipts and detailed lists of accounts will help in this pursuit
Looking Into the Future
While it is true that no one can predict the future, we can look at prospectus and info from the IRS that may impact how we manage our bookkeeping. In a world dominated by technology, the gig economy has offered a substantial change in the way we work. The most significant thing to remember is that income that comes through digital platforms, whether it is an app or a website, is taxable. If your business utilizes these types of revenue streams, your bookkeeping staff must maintain track. On the back of the gig economy (also called the sharing or access economy), many employers rely more on contractors and part-time workers to get things done. If you are in this situation, make sure you know the tax laws regarding these sorts of workers. The pandemic is temporary, but the gig boom seems to continue ad infinitum, so ensuring your bookkeeping staff is equipped with the proper tools is paramount.
How Alron Can Help Your Business
If you’re in over your head, get help from a professional accountant. Someone who knows the world of business numbers will ensure you aren’t missing anything important, and save you from major headaches down the road. Here at Alron Bookkeeping, Inc., a subsidiary of Alron Enterprises, Inc., we simplify accounting for you, so that you can focus on what matters most: growing your small business. Let our bookkeeping specialists handle your accounts and put your mind at ease. Contact us at 321-951-7626 or by emailing [email protected]. We look forward to working with you!