It’s that time again . . .. preparation for taxes.
I hate this time of the year as a small business owner. I have limited time as it is with two young children, and I have not really found the best possible way to keep track of my profit/expenses. Around Christmas each year my husband says, “It’s that time again,” and I head to the office for hours on end to look over my expense reports.
I’ve been working on this for a few years, trying to come up with a better solution so that there is not so much to go through at the end of the year. You would think that by now I’d have a wonderful, fine tuned system.
So as I plunder through a variety of checkbooks, receipts, and purchase statements this holiday season, I thought I would throw this question out to you:
How do you best organize your expenses and your profit statements from the past year? And how do you handle your monthly income/expenses?
Do you pay yourself a check each month and then use that money for any type of personal purchases?
Do you have a separate banking account for your personal items and your business items?
Do you have a separate credit card for your personal items and your business items?
Do you keep track of your expenses and profit by using a program such as quickbooks?
Do you do all of the bookkeeping yourself?
Do you have an accountant to take care of this for you?
I believe that I’ll end up going with the last option-an accountant. The financial day to day aspect of being a business owner is my downfall. My eyes glaze over when people start talking numbers, and the only time they perk up is when someone mentions the fact that about a quarter of my profit goes to the tax man at the end of the year (can you say ouch?!)
While I am organized, and I do keep track of personal/business expenses and what is coming in and going out, I am also time-poor, which means I have not figured out a great organizational system for doing these statements at the end of each month. Therefore, I have a year’s stack of paperwork to go through.
I know it would be better if I did this monthly. At the end of the year I’d have less to do, and if I made a commitment to sit down each month and figure out what came in and what is going out I’d actually save time.
Yet, sigh, this is just one more thing on my ‘to do’ list.
Perhaps I’ll write it as a New Years Resolution.
Or maybe I’ll just find a good accountant!