How much time did it take you to pull together financial information for your tax return this year? If you’re like me, you spent a fair portion of several weekends getting ready, and that wasn’t even time preparing the returns. Mine were handled by my Enrolled Agent.
It’s time to take steps to avoid this problem next year. I was thankful to see Rhonda Abrams’ advice in her post called Spring Clean Your Finances. She offers seven tips to get your business finances in order. One that will absolutely help you at tax time next year, if you don’t already use it, is “Get a simple accounting software program.”
Another tip that is timely is, “Limit the amount of credit you give to large corporations,” because “recent news reports indicate that there’s likely to be a rash of big-business bankruptcies.” Allow me to extend that advice to all businesses, large and small. In slow economic times, your customers are likely to be slower payers. Perhaps you can increase the amount of deposit of advance payment you require on a contract. And pay attention to another of her tips: “Go after overdue accounts – especially big ones.“
[Tip of the hat to Business Opportunities Weblog]