What Not to Do: Our top five bad habits to eliminate in your business.
Does anyone remember the 2000s-era television experience of TLC’s “What Not To Wear”? Looking back, it’s problematic in so many ways, but the central theme of outlining what not to do is freeing. It clearly lists bad choices so that you can make good ones.
To kick off Financial Literacy Awareness Month, we wanted to outline our top 5 things NOT to do with bookkeeping and accounting. Hopefully, this acts as a checklist of things to eliminate so that you can focus on implementing all the proper habits.
Don’t use Venmo or Cash App to collect payments from your clients. We know that this is easy, and everyone has these tools in their pockets. But it is really messy, it is hard to track, and more than likely - you’re probably violating their Acceptable Use Policy. You can read more about why we hate P2P apps on our blog.
Don’t ignore your sales tax responsibilities. Dreaming up renovations and implementing creative color stories for your clients is fun. Learning about their state’s sales tax laws is probably not. However, successful entrepreneurs need to understand these requirements before the initial proposal, especially if your client is out of state. Check out this blog post for our top five tips for complying with your sales tax responsibilities.
Don’t forget to collect a completed Form W-9 from your vendors before you pay their bills. Chasing after W9s is one of the worst parts of business finances. This form is required to file a Form-1099, and did you know to claim labor as a tax deduction your CPA will need proof that the Form-1099 was filed?
Don’t get behind on your invoicing. Managing your cash flow is essential for all businesses. Without proper cash flow management, it can be difficult to keep the doors open. If you need help with timely invoicing, let us know! This is a service that we offer as an add-on to our existing accounting service clients.
Don’t delay working with an accounting professional - many times, these professionals are booked for months or have a waiting list. Keeping your finances in order helps your business run smoother, allows you to make educated decisions, and saves you money when filing your taxes.
Running a business is hard. Implementing good habits can make it easier. We’re here to help. Whether you are an existing client looking for more support or an interior designer ready to hire a professional accountant to join your team – we are here to help you achieve your goals. Contact us today for more information.
