It’s Time to Get Ready for Tax Season, Literally… and Virtually
January 2022. The beginning of a new year. It’s Time to Get Ready for Tax Season.
It’s a time to focus, prioritize, and set goals for yourself and your business in the next 365 days.
As a business owner, your employees and customers count on your vision to create and deliver your company’s products and services.
Unfortunately, as you are looking at the year ahead, tax season is already looming large. It’s ready to consume your time and energy in a mad scramble of document-locating, form-populating and filing requirements.
How can you maintain your focus on growth and profits, when these necessary details of business take your eye (and efforts) off the ball?
One smart solution is enlisting the help of a virtual bookkeeping service, one of the fastest growing segments of the accounting industry.
With this approach, you can keep your attention on growth and development, while they work through your 2021 tax details and set you up for success in 2022.
Whether you are looking to streamline your company’s existing processes or to relieve yourself of time-consuming tasks, we have a few reasons why a virtual bookkeeping service is key to getting your business ready for tax season… and beyond.
First, What is a Virtual Bookkeeping Service?
Accounting departments can have a big impact on a company’s bottom line- ensuring that income is received, bills are paid, and monies are accurately allocated to various aspects of the business.
BUT, they are not direct income generators. Because of this, many companies have turned to outsourced bookkeeping services as a low-cost alternative to relieve the financial burden of an in-house team. These experts are well-versed in current tax laws, policies, and best practices. This especially helps alleviate last-minute surprises during tax season. The right virtual bookkeeping team can support an existing department or become a Virtual Controller that maintains the fiscal health, strength, and fortitude of your company.
Easy Guidance & Efficient Systems for Tax Season
Any company, new or well-established, can benefit from the help of an online bookkeeping service.
As industry experts, they know what to look for in your general ledger. Tax experts will adopt standards to help your business correctly and consistently enter data, record transactions, and store documentation so all activity is easily tracked and pulled when needed.
Simple things like running digital advertising campaigns can derail your books if one month the transaction is coded as a “marketing expense,” then the next month as “business development,” and then the following as “digital ads”.
An online bookkeeping service can create and enforce systems that keep your books in order, with easy to access documentation that shows how finances are allocated, which is especially crucial during tax season, and critical for making sound decisions throughout the year.
Their expert eyes can also review your company’s financial information and help with recommendations on cash flow management and growth prospects.
Keep the Books and the Banks in Order
Another aspect of managing the books ensures that they match the bank records.
Everything can appear to be balanced on your end, but if they do not reflect what the bank is reporting, you will have a tax season headache.
For example, your company’s ledger may show a payment to an outside vendor in the month of October.
But if they neglect to cash the check, there will be a discrepancy between your books and your actual bank account.
And while this sounds simple enough to spot and rectify, imagine sifting through a year’s worth of entries and additional similar situations.
A bookkeeping service knows what to look for and can save you time in identifying uncleared checks and other red flags before they become major issues.
And if they are able to work with cloud-based accounting systems, like Cabbage or Quick Books, the bookkeeping team can operate virtually and efficiently, while their organized approach seamlessly synergizes with your company’s tax preparer.
Actual Action
In addition to keeping your company on track for tax season with strict general ledger accounting, the expert nature of outsourced bookkeeping teams can also facilitate its day-to-day financial responsibilities. Depending on your business size and needs, they can streamline and efficiently handle tasks like:
- Inventory accounting
- Payroll services
- Accounts receivable and collections
- Accounts payable and bill payments
- Preparation of audit schedules and audit process management
- Communication with lenders
- Analyzation of financial information and cash flow
- Preparation of financial statements
- 1099 form distribution for outside vendors and subcontractors
- Reconciliation and review of expenses, assets, accounts payable and receivable, revenue, and bank accounts
And so much more.
Get More for Less
Many companies are transitioning to the use of outsourced bookkeeping services.
Instead of paying for salaries, computers, office spaces, and benefits for in-house accounting teams that do not directly generate profit, you, too, can turn to this lower-cost option of virtual bookkeeping for all aspects of financial support.
As an added benefit, outsourced bookkeeping can also give your company access to expert accountants with diverse professional experiences.
These specialists have had the time and training to set you up correctly, ensuring your company is financially efficient.
Plus, they are current on industry policies and can help you take advantage of the right year-end tax moves, so your business is in good shape for tax season and beyond.
They are well-versed in working with CPAs and know how to keep and prepare timely records, so everything goes smoothly.
Your Focus is on the Future
As a business owner at the beginning of a new year, you would rather take a grander look at the future, rather than spend time gathering data from the past year for the IRS.
Outsourced bookkeeping services will expertly handle these important financial details, leaving your time and mind free to create, develop, and grow, while together you work toward building a smooth, successful future for your company.
Our Team is Ready to Help Your Team
Well-seasoned, highly trained CPAs and accounting experts from the Big 4 accounting firms (KPMG, PWC, E&Y, and Deloitte), Our Bookkeeping Team has led and supported the accounting and finance departments of small businesses and startups for over a decade.
Offering an expanse of industry knowledge, the ability to work in any cloud-based accounting system, and a low-cost alternative to intricate in-house teams, we will set your business up for success in 2022 and beyond. If you are interested in a free consultation to see how we can help your company, please visit our website or call 213-468-8316.