Neumeister & Associates urges private individuals with valuable assets and owners of startups or other businesses of every size and type to take steps to ensure that their books are in order. Anyone seeking bookkeeping services, like traditional accounting, forensic accounting, business bookkeeping, and tax preparation, from a reputable CPA firm can find all that and more at reasonable rates that are well worth the low cost and small effort. Here are a few bookkeeping tips from our knowledgeable CPA specialists in Burbank that will help ensure your books are in order.
Always Keep Personal & Business Finances Separate
It is never a good idea to mix business finances with personal funds. Always keep these two finance categories separate for best end results. Using business money for funding personal projects and needs can get complicated. These actions may set a person up for being sued personally if the business should run into trouble later down the road.
Strive for Detailed Inventory Records
Experts in accounting and bookkeeping caution their clients to keep detailed inventory records. Sloppy bookkeeping can get people and businesses into trouble, but precise inventory and other accounting records can help to prove that everything remains legal and above board. This is crucial for tax-related purposes and other important legal processes.
A dedicated CPA firm in Burbank can assess your personal or business accounting and bookkeeping records to ensure that everything is being done in the proper manner. Oftentimes, a CPA can streamline services and coordinate with others to make accessing this type of information a breeze at any time.
Upgrading technology used to keep a good account of finances and other valuable assets can minimize the time it takes to locate and check where these funds and assets are being used at any given point in time.
Keeping a detailed record of inventory and expenditures can also help deter anyone with access to your finances from attempting to “cook the books” or otherwise steal from the company or personal finance-related accounts and valuable assets.
Schedule Regular Self-Audits to Catch Issues Early
It is wise to schedule regular self-audits to catch any issues early rather than later when it can be difficult to remedy the situation without fines or other IRS adverse consequences. This process can be set up to occur automatically if your bookkeeping uses technology to keep an accurate accounting of finances and other assets.
Running a business can be a challenge for those new at this job. Even the best accountant or bookkeeper can make mistakes from time to time. Sadly, there are unscrupulous individuals who will try to take money that does not belong to them to use for their own purposes. When there are not enough checks and balances built into an accounting format, these thieves may attempt to change figures and documentation to hide their illicit deeds.
Simple calculation errors could cause a business or personal account to accrue steep fees if an account would go into a negative balance at any point. Over time, these smaller errors or mistakes could cause individuals or businesses to lose a substantial amount of revenue or mount up fines and other unwanted consequences.
Some of the things that regular self-audits can catch include:
- Inaccurate Tax Withholding
- Business Related Cash-Flow Leaks
- Lost Profits
- Inaccurate Employee Wages and/or Benefit Deductions
- Late Payments to Suppliers & Other Business Entities
- Late or Missed Payments for Accounts Receivable
- Unsold Product Inventory
- Overhead Operating Cost Mistakes or Mishandling
- Equity Worth Miscalculations
- Billing Delays & More
The purpose of regularly scheduled audits can help pinpoint a cash-flow or other financial or business accounting problem. This then allows the business to look for solutions to these problems before it becomes out-of-hand. Even small errors and miscalculations can add up quickly over time.
The Importance of Overall & Precise Business Valuation for Small Businesses
Most companies set up their bookkeeping strategies and processes for a yearly or bi-yearly accounting review. This helps business owners to assess the overall business valuation. However, this may not be enough to save lost cash and missed opportunities according to seasoned CPA experts.
This is especially true for smaller businesses or startup companies, as there is usually a delay in accruing more profits than monies being put into these businesses early on.
A skilled CPA can help businesses start thinking proactively with regards to future business opportunities and develop realistic and easy-to-implement strategy moves that the business can take. There should be more precise reviews of your business’s inner workings to get a true and accurate picture of your company’s value at any time.
These sorts of business proactive strategies can help a company gain credibility among business clients, suppliers, and financial backers. Precise accounting and bookkeeping records and valuation reviews are key to landing large projects, business loan approvals, lines of credit and may generate more interest from potential future financial backers.
Choose Neumeister & Associates an Outstanding CPA Firm for Business or Personal Bookkeeping Services & More
More business owners and private citizens concerned about their current and future bookkeeping, accounting, business-related valuation services, and more have an outstanding CPA firm in the area willing to go that extra mile for their valued customers.
Services offered include:
- Basic Booking & Accounting both Business & Personal
- Forensic Accounting Services
- Understanding Commercial Damages
- CFO Outsourcing
- Overall Precise & Accurate Business Valuation Reviews
- Employee or Other Theft/Fraud or Misuse of Company Funds Incidents
- Due Diligence
- Tax-Related Services
- Investigations for Court, IRS, or Other Serious Legal Representation
- Optimizing Financial Performance
- Bank Reconciliations & More