QuickBooks Tips For a Fresh Start In 2024
As the bustle of December fades, January is a transitional month for many small business owners. This time of year generally calls for wrapping up any remaining loose ends from the previous year while diving headfirst into the new one. Readying your QuickBooks software for the upcoming year is one way to make sure you are in full control of your business finances as 2024 begins. Taking proactive steps now will pave the way for you to reach your financial goals when January 1 rolls around.
1. Run Four Critical Reports
As the dust settles from the holiday rush, take a moment to run four essential reports in QuickBooks. This will ensure your financial records are up-to-date and you don’t have any unwanted New Year’s surprises:
A/R Aging Detail: Identify customers in arrears, understanding who owes you and when payments are due.
Open Invoices: Isolate unpaid transactions, focusing specifically on outstanding invoices.
A/P Aging Detail: Ensure you're current on outstanding payments to other entities.
Unpaid Bill Details: Highlight bills with unpaid balances, streamlining your payable management.
2. Create Statements For Past-Due Customers
Sending statements to past-due customers using QuickBooks is a discreet collection method. While you decide on the level of follow-up, statements provide a clear breakdown of financial activities, fostering communication with those who haven’t yet paid their bills. If statements yield no response within ten days, however, consider more direct communication.
3. Evaluate Inventory
For businesses managing inventory, a thorough evaluation is important, especially after the holiday season. Navigate to the “Inventory Center” under “Vendor Activities” in the “Vendors” menu. Assess each entry under “Active Inventory” or run related reports to make sure you have the appropriate stock levels of each item for this time of year. For adjustments, use the “Adjust Quantity/Value on Hand” feature.
4. Set Up Online Financial Connections
Improve your business’s QuickBooks efficiency by exploring two powerful tools:
Online Banking (Bank Feeds Center):Connect QuickBooks to financial institutions for daily transaction imports, providing real-time visibility into your financial activities.
Online Payments (QuickBooks Desktop Payments):Optimize cash flow by accepting credit cards, eChecks, and ACH payments, accelerating the payment process from your customers.
January is the opportune time to reflect on how you can maximize your usage of QuickBooks for a successful 2024. If you're confused about any of these tips or need assistance with anything in this blog post, contact us today. Your financial success is our priority, and we're here to help you embark on the new year with confidence.
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“Bernard and his team at BR tax group are top notch. This is my first year using them after switching from a different local CPA and I didn't realize how much tax info I've been missing. His communication is great. The additional information he provides to maximize tax savings is something I didn't get from my previous CPA. Thanks Bernard”
Frequently Asked Questions
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You can prepare your taxes yourself, especially if your business is simple.
But once you have contractors, employees, business loans, equipment purchases, mileage, mixed expenses, or growing revenue, things get more complex. At that point, tax preparation becomes a way to make sure your business is reported correctly, your deductions are handled properly, and your records can support what you file.
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Send anything that shows what your business earned, spent, bought, paid, borrowed, or changed during the year.
That usually means your income records, bank statements, credit card statements, payroll reports, contractor payments, loan documents, mileage records, and prior-year tax return. Also tell me about anything unusual, such as buying a vehicle, hiring someone, opening a new location, or taking out a business loan.
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Messy books can slow things down. If expenses are in the wrong categories, transactions are missing, or personal and business spending are mixed together, your tax return may not show the right profit. We may need to clean things up before filing, so your return is accurate and easier to support.
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Possibly, if it was truly for your business and you have proof.
Still, it is much better to avoid this when you can. A separate business bank account and business credit card make everything cleaner. They save time, reduce confusion, and make your records much easier to defend if anyone ever asks questions.
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Most small business owners can deduct ordinary business expenses like software, advertising, supplies, insurance, rent, payroll, contractor payments, professional fees, travel, and some vehicle costs.
The question I usually ask is simple. Was this expense clearly for the business? If yes, we can look at how it should be handled. Personal expenses should stay personal.
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