Tid Bits that are guaranteed to save you time and money in the long run!
As a Small Business Owner; you wear many hats to ensure everything is running smoothly and efficiently. The last thing you want is an unpleasant surprise that you were not aware of. The majority of case studies revealed, this could not only cause embarrassment, but money in the majority of cases.
Below, are a few “Tid Bits” to that I recommend to my clients. This only has to be done on an occasional basis. However, it will allow the Small Business Owner to have a sense of any potential issues and take appropriate action before it goes further. This is something that can be done with little disruption from the regular routine.
1. Review the mail before it gets opened - Occasionally
Some of the items you should look for:
Returned Check Notices from Your Bank
Returned Check Notices From Customers
Past Due Statements from Suppliers
Notices From Governmental Agencies (IRS or State Filings)
Notice of Late Filings of Returns
Notice of Non-payment of Returns
2. Maintain Separate Bank Accounts
Deposit all your business receipts into your business accounts(s) and write checks for your major business expenses from your business checking account(s).
If you need money from your business for personal expenses write yourself a check from your business checking account(s) and deposit it in your personal checking account.
There are benefits for your efforts!
Just accomplishing this will make it much easier and save you money when preparing your income tax return. It will also give you an idea as to whether or not your business is making a profit. (Aside from your actual Profit and Loss)
3. Prepare & Review Monthly Bank Reconciliations
There are many small business owners that will literally call the bank to see how much money they have. Keep in mind that COMPANY records should reflect cash increases and decreases before the bank processes and records them.
EXAMPLE: Let's say, you want to write a check and you call the bank for today’s balance.
The Bank Teller gives you a balance of $6,000. Great, that's more than I expected!
- · Using the Teller’s information, you write a $3,800 check to have some electrical contracting performed
- · Results? A Bounced check by $300, NSF Fees and the embarrassment of explaining an NSF check to the Vendor – OUCH!
Feel free to call us to see how we can assist!
We will work with you to create an easy system, so you are confident you have the pulse of your business!