Decorations are down, parties are over, and life is back to post-holiday normal. For many of us, now is the time for the dreaded "T" word . . . Taxes! Ugh. A process nobody enjoys, whether you prepare quarterly statements for a small business or whether it's time to start organizing receipts for April. Too much of a project? Here's the answer - small bites!
I've worked with clients on both ends of the "prepared" spectrum - some with regular monthly updates of beautifully organized spreadsheets, and some who try to cram a year's worth of work into a few days. Which is better? I can't say. We all have different work styles, and what works for one may not work for another. However, in terms of low stress and efficiency, the first way is usually easier!
There are loads of online expense templates for any software system you might use (or SHOULD use if you don't now): Excel, Access, Quickbooks, etc. Even if you just use a simple Excel spreadsheet, taking half an hour each month to organize expenses is much easier than rushing to beat a deadline with a year's worth to go through. Go through receipts, bank and Paypal statements, and any other documentation you have. Enter each expense into your spreadsheet and add them up. Voila!
An easy way to stay organized is to use envelopes - even used ones from mail you've opened. Label each envelope with an expense category: Supplies & equipment, mileage, meals/entertainment, internet, contractor expenses, website and domain expenses, etc. Put all your business receipts in these envelopes as you sort through them, and when you're ready, all you have to do is add them up and enter into your spreadsheet.
Use these same envelopes to store receipts throughout this next year as well, and come next quarter's accounting, your recordkeeping will be a breeze!
My next post will cover ways to make going through statements eas
Welcome! These stories, tips and tricks are intended to help you save time, and be more organized and effective in your work. New items will be added frequently so check back often.