DOES YOUR BOOKKEEPING PROCESS SEEM TANGLED? It’s time to reevaluate and make sure you’re using your system to the fullest to streamline your workflow!
SIMPLE BEST PRACTICES you should be considering for your business:
Businesses should request W-9 forms from vendors to comply with IRS 1099 filing requirements.
If you pay a vendor $600 or more in a year for services, you must issue a 1099-NEC form. There are more details on the IRS website: http://www.irs.gov/. This applies to individuals, partnerships, and certain LLCs. Remember, these 1099 forms are due by the end of January. Ensuring monthly you have W9s on file for all vendors will streamline your end of year 1099 issuing process. Additionally, check in with vendors or clients to see if any have moved. It’s essential to have accurate information to run your business effectively.
Keeping your financial information up to date is crucial.
Ensure your bank feeds are functioning properly so you can access real-time data for informed decision-making. Reconcile, comparing your QuickBooks transactions against your bank transactions, this should be done monthly. Verifying the consistency of automation in your accounting books safeguards against mismanagement and enables informed decision-making. Consider partnering with a company like ours to help you manage this process.
Correctly categorizing transactions in accounting is fundamental because it ensures accurate financial reporting, helps with tax compliance, and allows for better analysis of expenses and revenues. This leads to improved cash flow management and more effective budgeting.
Overall, proper categorization makes bookkeeping easier and supports better financial decision-making, contributing to the long-term success of the business.
Reviewing the balance sheet is important because it provides a clear snapshot of a company’s financial health. Understanding these numbers helps identify trends, assess liquidity, and make informed decisions.
A good process for catching exceptions ensures accuracy, preventing potential errors that could lead to financial mismanagement or compliance issues. Regular reviews promote transparency and help businesses respond quickly to any financial discrepancies, ultimately supporting long-term success.
For more information or a free consultation give us a call or email info@vilmsconsulting.com.
