Submitted by Mary Anne Banke
I'm thinking that perhaps if your tax returns are not yet completed, you don't have a bookkeeper who brings your numbers up-to-date at least monthly. Even if you're lucky enough to be expecting a refund and therefore you haven't "filed" your returns yet, none-the-less, if you are on top of your business operations, you probably should have your tax returns completed by now. By the end of January, my clients have the business operating numbers which they need to have their tax returns prepared.
You might be thinking that we do the bookkeeping so that we'll be able to prepare our tax returns. My feeling is, that's actually the very last reason to do the bookkeeping.
If we aren't receiving monthly reports detailing our written sales, our completed sales, our incurred expenses for the period, our month-end accounts receivable aging and balance, our month-end accounts payable aging and balance - then I'm sorry, but you probably aren't on top of your business. And, importantly, you are incurring unnecessary stress and strain because of it. If that's the case, you are probably reacting rather than acting in the management of your business operations. If you're reacting every month, you probably can't be doing the sales, money management, investment and tax planning that you need to do to comfortably operate and manage a profitable business.
Happy and profitable sales and business operations to you all!
Mary Anne Banke
The BOOKKEEPER for your service business.