The concept of time – it’s a fleeting commodity, an ever-elusive dimension of our lives. And if you’ve found yourself on the edge of a new tax season or year-end planning with a pile of neglected bookkeeping tasks, it’s at that point where time starts to feel very unforgiving. It’s a situation we encounter often, especially right after those ominous extension deadlines. Perhaps you were overwhelmed with countless reminders but managed to evade reading a single one, and now you’ve come to the realization that your bookkeeping is in disarray.
Fret not, for you’re not alone in this predicament. It’s honestly impressive that you’ve acknowledged the importance of getting your bookkeeping right. Bookkeeping plays a pivotal role in your business, serving as a ledger for the aftermath of your financial decisions. It can show you the financial consequences of your choices, giving you insight into your business’s profitability and sustainability.
However, when it comes to taxes, the IRS is not your financial confidante. I promise you that minimizing your tax liability is essential, as your hard-earned money is much better off in your hands than the government’s. So, how can you bring your bookkeeping up to date in a little amount of time? Let’s explore some practical strategies:
1. Dive In and Get It Done:
This is the most obvious and important step. Unfortunately, there’s no shortcut or magic wand to help you make up time on your bookkeeping – you simply have to get it done. However, modern accounting software can speed up the process by connecting to your bank and credit card accounts, helping you download all of your transactions. After you have imported all of your data, each transaction must be categorized into their proper place – expenses, income, office costs, travel, and so on. This step is critical, it might require a significant time investment, especially if you have never done it before.
2. Consider Professional Assistance:
If you’re not extremely experienced with bookkeeping, it’s a smart idea to evaluate whether professional help would be a worthwhile investment. Time is a valuable resource, and if you don’t possess the expertise or speed for efficient bookkeeping, hiring an accounting firm can realistically be your best solution. Professionals can not only expedite the catching-up process but also categorize expenses accurately. This will make your bookkeeping efforts much easier in the future. Investing in a professional now can save you immense amounts of time in the future.
3. Block Out Time:
If you’re committed to doing it yourself, I commend your good work ethic, but brace yourself for a time-intensive project. Block out dedicated slots in your schedule – it could be a workweek, a weekend, a few evenings, or several individual hours over the course of the next month. The point is, you have to allocate uninterrupted time to focus on your bookkeeping. It is important to keep in mind that simply blocking out time is not enough. You have to stick to your plan and make sure that you actually work on the bookkeeping when you commit to doing it.
4. Be Wary of ‘Free’ Help:
I know this may be harsh, but while free assistance from friends or relatives may sound enticing, it often leads to delays. People tend to prioritize their work over yours, and when it’s a complimentary favor, you can’t rush them. In life, you often get what you pay for. And if you don’t pay for anything, its hard to expect anything. A professional accounting service may come at a cost, but the efficiency and expertise they offer are well worth the investment.
Unfortunately, no magical software exists to instantly update your books. Whether you tackle the task on your own or enlist professional assistance, diligence and time allocation are key to success. To help you stay on top of your bookkeeping in the future, we offer a free bookkeeping checklist that outlines weekly, monthly, quarterly, and annual tasks. It can be a valuable resource as you endeavor to keep your financial records current.
Remember, your hard-earned money belongs in your hands, and good bookkeeping is your ally in that challenge. To access our bookkeeping checklist, check the link below. Until next time, remember that time is on your side when you put it to good use.