LaShonda Debrew | CPA Upper Marlboro Maryland CPA LaShonda DeBrew
Empowering You


5 Steps to a Stress-Less Business

1. Set up bookkeeping/financial reports.

First things first, set up a system and process that lets you easily enter bookkeeping and financial details. QuickBooks is the leading easy-to-use and affordable software programs on the market that lets you categorize your financial data and create accurate reports.

You’ll have access to the helpful financial reports that you need such as profit and loss, revenue, cash flow projections, expenses and balance sheets. These provide an accurate picture of how your business is doing. Whether you set up and manage the system yourself or hire a bookkeeper, getting monthly/quarterly/yearly reports will help you better plan the future for your business.

 

2. Stay updated on cash flow.

How often should you check your cash flow? Well, it’s a smart idea to check it regularly. The simplest way to do it is as follows:

  • Check your bank account balance often.
  • Get a printout a cash report showing upcoming revenue due in a specific time-period and payments due during the same period.
  • Make sure your bank account balance and incoming funds will be higher than the payments.

 

3. Review income and expenses.

An important key to financial management is to add all the records of the money your company earns and the money it spends to your financial accounting system. You can then painlessly create reports that let you review how much the gross income is reduced by the cost of goods and other expenses. What this does is shows your actual net income and keeps you from viewing income at an inaccurate level.

 

4. Plan for tax savings.

Another smart thing to do is to talk to your tax accountant ahead of time, get an complete view of taxes your company will owe, and then plan for ways to reduce taxes. For example, before the end of the tax year you can reduce your tax costs by making additional purchases of like items or equipment your business needs, you could pay some bills ahead of time and delay depositing revenue checks into your bank account until the following year. By reducing taxable income, you’ll save lots of money on tax payments.

 

5. Determine profit percentage.

One other important financial step to take is to know what your true profit percentage is. Knowing your actual profit will help you plan better for the future, look for higher efficiency to increase profit, and see if your company is meeting its goals.