Author name: wpx_@bacus4u

“Why do I need a bookkeeper? If I’ve got QuickBooks and TurboTax, it’s basically just point and click, right?” You aren’t the first person to ask that question 😅 And we get it – it feels like EVERYTHING is automated with the click of a button these days, right? However – at the end of the day, QuickBooks and TurboTax are just tools. And you still need the expert touch of a human to help you avoid some serious fees, fines, and mistakes. (After all, you wouldn’t just hire a hammer to build you a house, right? 😜)

We know – the April 18th tax deadline has passed and right now you’re thinking, “Hallelujah! I can STOP thinking about taxes for a few months!!” 🙌 But before you put this year’s tax season in the rearview mirror, 🚗 🌬️ Let’s talk about it just one more time, while everything is still fresh in your mind. (Trust us – it’ll only take an hour and it will make your tax season next year WAY easier!) All you need is a Word document, or a pen and a piece of paper, to do this simple brain-dump exercise. Ready? First, answer 4 questions this week about this tax season you just finished: (𝟭) 𝗪𝗵𝗮𝘁 𝗺𝗶𝘀𝘁𝗮𝗸𝗲𝘀 𝗱𝗶𝗱 𝘆𝗼𝘂 𝗺𝗮𝗸𝗲 𝗶𝗻 𝘆𝗼𝘂𝗿 𝘁𝗮𝘅𝗲𝘀 𝘁𝗵𝗶𝘀 𝘆𝗲𝗮𝗿? This could include:
❌ Forgetting to file and pay your quarterly taxes
❌ Sent out your 1099 documents late
❌ Forgot to track your business mileage
❌ Couldn’t find receipts for all of your major expenses

Did you know that hiring a bookkeeper is A LOT cheaper and easier … than trying to DIY your finances and dealing with late tax penalties? 🤔 We know – it’s not exactly an unbiased claim 😜 but we can prove it, we promise. Just for example purposes, let’s look at two business owners this week to compare. So, let’s say that both business owners are florists and they both had revenue of $200k in their stores last year. We’ll call the first florist Herb; and the second florist, we’ll call her Rose. Now, Herb did NOT hire a bookkeeper last year. After he got a quote from a bookkeeper for $250/month (that’s $3,000 per year!), he said, “You know what – I’ll just DIY it and save myself $250 bucks a month – it shouldn’t be that hard, right?” But he never seemed to find the time to keep up with it all. And suddenly it was March 31st, and he hadn’t opened QuickBooks since Thanksgiving weekend.

So, he tried to scramble and catch up.

🔒 He closed his store for 2 days to try to catch up his finances (losing about $1,500 of walk-in traffic)

So – how did tax season go for you this year? 😬 🧘🏻‍♀️ Was it calm and organized … or stressful and panicked? ⏰ Did you file with plenty of time to spare … or were you rushing and scrambling until the very last minute? We know, we know… You always start the year with good intentions, but life happens and before you know it – BOOM! 💥 It’s tax season and all your good intentions to be prepared and ready for tax season flew out the window faster than a fly on the window confused about how to get back outside.🦟

❌ This wasn’t the plan, right?

😫 Don’t beat yourself up, we are here this week to encourage you for next year!

👩 You’re a responsible grown-up and you had a responsible grown-up plan for handling your finances this year.

*Especially* after how stressful your taxes were last year (remember that?)

📆 Last year – you procrastinated until the last minute, and it was *terrible*!

📆 Last year – you swore it was going to be different this year.

📆 Last year – you promised you’d schedule the time and keep on top of your finances every month.

Are you still scrambling to finish up your taxes on time? 😬 or did you file for an extension? In your rush to file on time – make sure that you don’t make one of these common (and easily avoidable) mistakes! First – here are some of the documents and information you’ll need: ☑️ Last year’s tax return ☑️ Your social security card and official business docs ☑️ All your tax documents from 2021 ☑️ Your bank account information. Now grab your tax return for this year and double-check these 7 common mistakes:

(𝟭) 𝗜𝘀 𝗲𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴 𝘀𝗽𝗲𝗹𝗹𝗲𝗱 𝗰𝗼𝗿𝗿𝗲𝗰𝘁𝗹𝘆?

(𝟮) 𝗗𝗼 𝗮𝗹𝗹 𝘁𝗵𝗲 𝗻𝘂𝗺𝗯𝗲𝗿𝘀 𝗺𝗮𝘁𝗰𝗵?

Make sure your numbers on your tax return match the numbers on your 2021 tax documents

(𝟯) 𝗔𝗿𝗲 𝗮𝗹𝗹 𝗺𝘆 𝗜𝗗 𝗻𝘂𝗺𝗯𝗲𝗿𝘀 𝘄𝗿𝗶𝘁𝘁𝗲𝗻 𝗰𝗼𝗿𝗿𝗲𝗰𝘁𝗹𝘆?

Think SSN, bank account numbers, etc.

Feeling the crunch and thinking of filing an extension for your business taxes? ⏰ Here’s what you need to know 👉 𝗪𝗛𝗔𝗧’𝗦 𝗧𝗛𝗘 𝗗𝗨𝗘 𝗗𝗔𝗧𝗘 𝗙𝗢𝗥 𝗙𝗜𝗟𝗜𝗡𝗚 𝗧𝗛𝗘 𝗘𝗫𝗧𝗘𝗡𝗦𝗜𝗢𝗡? April 18th, 2022 – which will then give you until October 17th, 2022 to file your taxes. (However, keep in mind – your 𝙥𝙖𝙮𝙢𝙚𝙣𝙩 is still due April 18th, even if you extend your 𝙛𝙞𝙡𝙞𝙣𝙜 deadline) 👉 𝗪𝗛𝗔𝗧 𝗙𝗢𝗥𝗠(𝗦) 𝗗𝗢 𝗜 𝗡𝗘𝗘𝗗? IRS Form 4868 if you’re self-employed or a sole proprietor. If you’re a partnership, S-Corp or C-Corp, you’ll need IRS Form 7004. 👉 𝗛𝗢𝗪 𝗗𝗢 𝗜 𝗙𝗜𝗟𝗘 𝗜𝗧? You can file the extension electronically or by mail. You can file electronically through the IRS payment portal (it’s free) and through most tax software tools. But, if you file by mail, make sure you have documentation/proof of the date that you sent the form. 😉

👉 𝗛𝗢𝗪 𝗗𝗢𝗘𝗦 𝗙𝗜𝗟𝗜𝗡𝗚 𝗙𝗢𝗥 𝗔𝗡 𝗘𝗫𝗧𝗘𝗡𝗦𝗜𝗢𝗡 𝗔𝗙𝗙𝗘𝗖𝗧 𝗠𝗬 𝗧𝗔𝗫 𝗣𝗔𝗬𝗠𝗘𝗡𝗧?

Even if you file for an extension, your tax 𝙥𝙖𝙮𝙢𝙚𝙣𝙩 is still due April 18th, even if you extend your 𝙛𝙞𝙡𝙞𝙣𝙜 deadline to October. Try to estimate as close as you can to the amount of taxes you have due, and make sure to pay it by April 18th to avoid late payment fees and interest.

“So why do I need a bookkeeper if I already have an accountant? Don’t you guys do the same thing?” Well – not exactly. 😉 Here’s the easiest way to explain the difference: 🩺 A nurse’s relationship to a doctor 🤓 Is like a bookkeeper’s relationship with an accountant. (And let’s be real – EVERYONE knows it’s the nurse who REALLY knows what’s going on with the patients, right? 😉 ) So, that’s what the difference is. We will explain 3 reasons why it’s important to have a year-round “nurse” for your finances and not just an annual “doctor” appointment with your accountant. 𝟭- 𝗜𝘁’𝘀 𝗖𝗵𝗲𝗮𝗽𝗲𝗿 💰 We know, we know, it sounds counterintuitive that hiring someone will SAVE you money, but it’s true. A bookkeeper will help you:
Capture every tax-deductible expense (before you lose the receipt)
Prevent double payments
Increase your profit margin
Save you from late filing fees

Do you have an “emergency savings fund” for your business? 💵 If you don’t, maybe you genuinely like the idea of having one … but just don’t know where to start. If that’s where you’re at, then this post is for you. (𝟭) 𝗙𝗶𝗿𝘀𝘁, 𝘄𝗵𝗮𝘁 𝗶𝘀 (𝗮𝗻𝗱 𝗶𝘀𝗻’𝘁) 𝗮𝗻 “𝗲𝗺𝗲𝗿𝗴𝗲𝗻𝗰𝘆” 𝗲𝘅𝗽𝗲𝗻𝘀𝗲. There’s a difference between an “emergency” expense and an “overlooked” expense. Forgetting about your quarterly property tax bill, or your annual accountant invoice – well, that doesn’t count as an emergency. 😉 Those are bills you can plan and budget for normally. An “emergency” is something urgent and unpredictable, like a burst pipe in a building you own 🚰 (𝟮) 𝗪𝗵𝗲𝗻 𝘁𝗼 𝗽𝘂𝗹𝗹 𝗳𝗿𝗼𝗺 𝘆𝗼𝘂𝗿 𝗲𝗺𝗲𝗿𝗴𝗲𝗻𝗰𝘆 𝗳𝘂𝗻𝗱 (𝗮𝗻𝗱 𝘄𝗵𝗲𝗻 𝘁𝗼 𝗵𝗼𝗹𝗱 𝗼𝗳𝗳). Before you pull from your emergency fund, ask these three questions: 1 – Is this expense unexpected (and not just overlooked)? 2 – Is it necessary? (A cracked iPhone screen, if the phone still works, doesn’t count!)

3 – Is it urgent? (Will the problem worsen, or will a vital opportunity be lost?)

“BUT WAIT! THERE’S MORE!!” Remember that TV sales guy back in the early 2000s? The one with the beard who was always yelling about the 𝘮𝘪𝘳𝘢𝘤𝘭𝘦 of OxiClean? (Side note: what is it about those TV salesmen that made them believe that the LOUDER they yelled, the more likely you are to buy?) And not only could it get out impossible stains, but it was also such a MIRACLE product, the salesman made it sound like it could: 🛢️ Clean up the BP oil spill 💍 Improve your marriage. 🧪 AND split the freakin’ atom! When really, at the end of the day: 🧼 It was just laundry detergent 🧼 We promise we are headed somewhere with this visual – show up tomorrow for this to start making some bookkeeping sense. LOL! Those goofy infomercials got us thinking about our bookkeeping business. So – here’s what we can honestly do to help you. No hyping, yelling or overpromising. Just facts:

❌ Technically, yes – you can learn how to do your own bookkeeping and do it all by yourself without hiring anyone.

How would you like to lower the stress level in your business? 💵 👉 Then let’s talk about your accounts payables first. I know, I know, it’s a lot more exciting and fun to talk about your new clients and the money coming IN the door. But one of the easiest ways to de-stress your business finances is to manage the money going OUT the door. 𝗦𝗼, 𝘄𝗵𝗮𝘁 𝗶𝘀 “𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝘀 𝗣𝗮𝘆𝗮𝗯𝗹𝗲”? This is the money that is going out of your business 𝘪𝘯 𝘵𝘩𝘦 𝘯𝘦𝘢𝘳 𝘧𝘶𝘵𝘶𝘳𝘦. When you receive an invoice, like from a vendor, that unpaid invoice is categorized as “accounts payable” (basically, “to be paid”). Then, once that invoice is paid, it’s categorized as an expense. It can include things like utility bills, rent, and invoices from your vendors and subcontractors. (However, payroll is not included in this classification) What is your stress level when it comes to your accounts payable (money going out the door)?