Tips on How to Improve Your Bookkeeping Habits This 2022

Tips on How to Improve Your Bookkeeping Habits This 2022

giving you tips on how to improve your bookkeeping strategies

 

Are you the type who makes New Year’s resolutions? Though the vast majority of those who pledge self-improvement focus on losing weight or exercising more, deciding to brush up on your bookkeeping habits may actually be smarter – and easier to stick to. If you’ve ever found yourself shaking your head at your own process, the beginning of the year is the perfect time to correct inefficiencies and counter oversights. There’s no reason to overhaul everything; just making changes for how you go about things in the future will make a significant difference. Here are some of our top tips for small steps that will go a long way towards improving your operations in 2022.

 

See Relax Tax’s Tax Audit Assistance at relaxtax.com/audit

 

  • Get away from hard copies

One of the top reasons people give for not going paperless is that they have too many paper records to convert. The truth is that you can keep your paper files and still switch over to digital. All you have to do is check the box to convert to paperless as you log on to each of your accounts. You’ll be amazed at how much lighter you feel without account statements filling your snail mail mailbox, and how easily you can access information with the ‘find’ function of your computer.

 

  • Where autopayment is available, activate it

Why should you go through the process of tracking and paying monthly bills manually? As long as you have plenty of cash in your payment account you can set yourself up with autopay and move on to more important tasks.

 

See this related post from Anthony Guzman: What Can Business Insurance Do To Help A Business?
USI is unique in these factors. We take a lot of the mid-market and the analytical data resources, and we bring it down to the small commercial. The mom-and-pop and the smaller businesses can take advantage of some of the larger corporations only have access to. It’s a great way to give business owners a look into the risk in a more complex and mature way instead of looking at insurance as a commodity or just an obligation. You really can use it as access for your business and for your future. Your business relies on insurance and it keeps you afloat.

 

  • Separate your business accounts from your personal accounts

This is one of the top pieces of advice for every business owner, and if you haven’t done it previously then now is the time. Things are going to get even more complicated with the changes in tax law that take effect in 2022, so make it easier on yourself by setting up separate accounts.

 

  • Create a recurring monthly date for reviewing your bookkeeping and accounting numbers

Think about how many times you’ve found yourself confronted with some kind of bookkeeping emergency or question that has stopped you in your tracks and sent you scrambling for answers. If you set a date with yourself once a month that is specifically for reviewing your financial issues, you’ll avoid the sense of urgency and enter the discussion prepared.

 

  • Anticipate and prepare for your tax needs

If you find yourself worrying about how you’re going to pay your tax bill each year, it means that you’re not paying attention. If you know how much you’re making then you have a good idea of how much you’re going to owe, and you should be setting those funds aside now so that you’re not stressed later.

 

See this related post from Dennis Harabin2022 Tax Season: Another Hectic Year for IRS and Taxpayers?
Taxpayers generally will not need to wait for their 2020 return to be fully processed to file their 2021 tax returns and can file when they are ready. So, if you filed your 2020 return, but the IRS has still not processed it, don’t let that stop you from preparing and filing your 2021 return. The best advice is don’t procrastinate in filing your return, even though the IRS may be bogged down.

 

Do you need more information? You can reach out to Dennis Harabin at Relax Tax today!

 

If a fresh start sounds good but you need help, we’re here for you. Give us a call at 551-249-1040 to learn how our comprehensive bookkeeping and accounting services can make your life easier.

 

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