Bookkeeping Tips for Small Businesses

1. Separate Business and Personal Finances
   Open dedicated bank and credit card accounts for your business to simplify tracking and avoid IRS scrutiny.

2. Use Accounting Software
   Choose tools like QuickBooks, Xero, or FreshBooks to automate tasks, generate reports, and reduce manual errors.

3. Reconcile Monthly
   Match your bank and credit card statements with your books to catch discrepancies early.

4. Digitize Receipts and Records
   Scan and store receipts electronically to maintain a clean audit trail and reduce paper clutter.

5. Track All Income and Expenses
   Record every transaction—cash, card, or transfer—to ensure accurate financial reporting.

6. Invoice Promptly and Professionally
   Send invoices within 48 hours of service and use branded templates to reinforce credibility.

7. Automate Payment Reminders
   Set up automatic reminders to encourage timely payments and improve cash flow.

8. Assign Bookkeeping Roles
   Delegate tasks or hire a pro to ensure consistency and reduce errors.

9. Review Financial Reports Regularly
   Analyze income statements and balance sheets monthly to monitor profitability and growth.

10. Prepare Quarterly Budgets
    Forecast sales and expenses to guide decision-making and avoid surprises.

 Tax Preparation Tips for Small Businesses

1. Set Aside Money for Taxes
   Estimate your tax liability and save monthly to avoid year-end panic.

2. Understand Deductible Expenses
   Know what qualifies—home office, mileage, supplies, software, and more.

3. Track Mileage and Travel
   Use apps or logs to record business-related travel for deductions.

4. Elect the Right Tax Structure
   Consider LLC, S Corp, or Sole Proprietor based on your income and goals—consult a CPA.

5. Claim All Income
   Report all earnings, even if you didn’t receive a 1099—IRS matches reported income.

6. Keep Adequate Records
   Maintain organized documentation to support deductions and defend against audits.

7. Take Advantage of Section 179 and Bonus Depreciation
   Deduct the full cost of qualifying equipment and property in the year of purchase.

8. Donate Appreciated Stock Instead of Cash
   Maximize charitable deductions by donating stock at its current value.

9. Consult Your Accountant Year-Round
   Don’t wait until tax season—strategic planning throughout the year saves money.

10. Stay Updated on Tax Law Changes
    Monitor updates like SALT cap adjustments or bonus depreciation rules.