With tax season around the corner, many businesses and individuals may be apprehensive and confused. Enter the bookkeeper. A bookkeeper is a valuable asset to any business as s/he helps ease the transition of files from a box full of receipts and misclassified journal entries to an organized collection presented in a Profit & Loss, Balance Sheet, and General Ledger.
Tamara Thompson, the owner of T3 Bizz Bookkeeping & Accounting, shared some tips with fellow East Bay Business Exchange members.
Tip 1: It's in the Charts - the Chart of Accounts, that is.
Having a chart of accounts that is correctly classified makes it easier to categorize expenses and revenue. If your Profit & Loss statement lists an unusually high balance in the Miscellaneous account, you may want to speak with a certified bookkeeper.
Tip 2: Keep an Eye on that Petty Cash
For businesses that have a petty cash account, keep an eye on the balance. A high balance is not customary and creates a possible red flag. Remember petty cash is to be used for the purchase or reimbursement of small-dollar items.
Tip 3: Review Your Office Supplies Expense
Every industry has an expected standard office supplies expense. If your office supplies expense is significantly higher than the industry you may want to double check that expenses are correctly categorized.
Business owners do what they do best: their business! Leave bookkeeping and accounting to an expert and contact Tamara Thompson today for a consultation.
Tamara Thompson is an active member of East Bay Business Exchange. EBBE is a business networking group, whose aim is to help each other grow through business to business referrals. Attend the next meeting of East Bay Business Exchange and discover our group.