Category: Taxes

Keeping your financial records up to date is fundamental to the success of your small business. Bookkeeping is the first and probably the most crucial step in the accounting process. An accountant will compile all the financial data – from transactions to payroll – and turn it into easy-to-read reports ready for later analysis. There are a plethora of advantages of using an external accounting service compared to hiring an individual accountant. Let’s check out some of the incredible perks of using a bookkeeping service for your small business!

#1. Helps You Understand Your Financial Health

Updating your directories allows you to have access to information that is crucial to the smooth running of your business: all unpaid invoices, salary estimates, and income information will be at your fingertips.

#2. Helps Your Budget

Bookkeeping is essential as it helps you budget. When income and expenses are correctly organized, it makes it easier to review financial resources and costs. A budget creates a financial roadmap for your business. With a budget, you can plan for future expenses and the anticipated funds that would cover those expenses.

#3. Improves Decision-making

If you have daily bookkeeping records, you will find it much easier to make crucial financial decisions. Knowing how much capital you have at your expense helps you to decide on matters like purchasing inventory or hiring more staff.  If your records show that you are running low on capital, you can choose to take out a loan for your business.

#4. Unbiased Opinion

Having an external bookkeeper can do wonders for your business.  An internal bookkeeper is often emotionally involved in your company. External bookkeeping services will be all business and may offer some crucial insight into your business’ financial situation.  It may be positive or negative insight, but either way, it’s valuable information you may have missed otherwise

#5. Makes Problem-Solving Easier

If you do your bookkeeping daily, you will be able to catch any problems early and solve them before they increase. If you update your books daily, you can identify any fraudulent activity and report it before it does irreparable damage to your business.

#6. 100% Peace of Mind

Disorganized books can weigh heavy on your mind as a business owner. With all of the other factors of running a business, your bookkeeping should not be keeping you up at night. When your books are complete, you can rest easy knowing that your company’s financial information is review ready. Banks or the IRS no longer have to give you anxiety. Instead, you’ll find your mind at ease, and more focused on other elements of your business.

#7. Focus on What is Important to You

Using a bookkeeping service will allow you to focus on what is important to you, both within and outside of your business.  Maybe you want to focus on sales and growth, but you need specific financial reports and analysis to do so.  Perhaps you just don’t want to have to worry about your business bookkeeping so you can focus on things outside of the office, such as your family and golf game.  Using a bookkeeping service will alleviate any concerns about your business’s financials so you can refocus on what is important to you.

#8. Provides a Snapshot of Your Business

Bookkeeping provides financial information about your company in the form of financial statements. Financial statements like the balance sheet, income statement, and cash flow statement all provide financial information for a set of time. Together these statements take a snapshot of your business, allowing you the ability to see how well your company performed.

Are you becoming frustrated with managing your finances and losing track of your bookkeeping obligations? John Mollica & Associates has got you covered! Boasting over 24 years of experience in the taxation and accounting field, they’ll provide efficient, practical business and accounting advice to help you acquire more assets and protect them and make sure your small business stays competitive and profitable.

It’s tax season! Whether you’re excited about receiving your latest tax slips or worried about having to collect all your tax documents, it’s time to do your taxes. Getting a tax refund is a crucial part of that process. Most people are hoping for reimbursement and can’t wait to receive their direct deposit (who still gets a paper cheque anyway)? But doing your taxes can be challenging. That’s what the mainstream media, as well as advertising and other sources, tell you. So, do you have to pay someone to do your taxes?

Asking someone to take care of your taxes can be a bit like asking for help with home improvement work. Some people like DIY projects – they are gifted with the skills, and would rather keep their business to themselves. Others, however, are happy to entrust these tedious tasks to a professional, who can also do a better job. Likewise, preparing your tax return requires the same kind of work. You’re probably able to go ahead on your own if you like to do the math, but you can also call a tax professional to help you dial your number quickly, as you’ll probably end up asking a few questions as you go along. If not, you may want to pay someone to take care of your tax return. Whether you decide to begin, you still may have one important question – Is it worth the money to have my taxes done by a professional? Below are some spellbinding reasons to hire professionals.

Save a Truckload of Money

We all know that the best part of the tax return is the money you get back once everything is said. When professionals do their tax return, you have a better chance of getting MORE money back! When you allow a professional tax preparer to work on your taxes, you can identify areas that you may be overlooking. That way, you’ll have a better chance of getting your money back when it’s time to get that pretty little cheque. Don’t deprive yourself of cash!

Fewer Mistakes

The Internal Revenue Service maintains a comprehensive list of the most common tax errors that include calculation errors when determining taxable income, entering payments on the wrong line, and simple calculation errors. A mistake on your return can delay any refund you are owed. If you make a mistake, tax liability, interest, and fines will accrue from the date you filed the taxes. While no tax professional is perfect, a simple error on a return is less severe if you use professional tax services.

Utter Peace of Mind

Year after year, nothing else will give you the peace of mind that comes from hiring a tax preparer. Your professional tax preparer will be familiar with your tax situation, saving him or her time each year (time equals money), helping you with audits, and finding your deductions and credits that reduce your tax liability. Knowing that your taxes have been adequately reported each year is the best way to reduce stress and eliminate any reporting anxiety.

Professional Tax Advice

Tax rules are complicated. Before you can use a deduction or credit, you must be entitled to it. A tax professional can help you find out what deductions and credits you are entitled to and give you advice on specific tax issues. For example, you can use both a tuition fee deduction.

Relax, Take it Easy

Filing your taxes should no longer be a tedious process. Experts are available to help you take the next step and tackle your taxes head-on. Contact Nexgen Accountants today for your free quote. They’ll assess your situation and help you get the most from your upcoming tax return!

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