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Why Your Small Business Needs Monthly Financial Checkups

It’s official. Tax season is finally over, but that does not mean your small business is done thinking about taxes for the year. Now it’s time to learn from any mistakes made in 2014 and new policies that will be implemented for the 2015 business fiscal year. Every business is unique and has its own financial calendar, but financial record keeping is a year-round task no matter your industry. Just as you need a personal health checkup on a regular basis, your business expenses need to be reviewed at least once each quarter to ensure you are on track for next year’s taxes.

Be Conscious Of Business Expense Deduction Opportunities

Every business owner loves a tax write-off. You admittedly wish all expenses could be considered business types. However, you may be surprised to see how many are considered acceptable! Entrepreneur contributor Mark Kohler provides a handy list of potential tax deductions you may not have considered. Some of the odd potentials include customer gifts, credit card convenience fees and bad debts that are uncollectable.

Remember, the Internal Revenue Service classifies acceptable business expenses as tax-write offs if they are “both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business.”

Schedule A Meeting With Your Business Tax Preparer

Meeting with a financial advisor or a tax-trained professional, such as a CPA, on a monthly basis allows you to see first-hand whether your expected business tax write offs are acceptable prior to filing taxes. This helps streamline your processing time, as well as educate you on changes to the tax code that occurred during the year.

Streamline Unnecessary Or Lacking Results Services

While you are evaluating your quarterly financial expenses, this is also a great time for you to justify each expense. Maybe you don’t really need that batch email service now that you have a great in-house email system, or perhaps an advertising medium isn’t yielding the results you expected. Other areas to consider are landscaping, property rent or storage services. Consider more eco-friendly options for you, your employees, your business and your clients. While these may incur more up-front costs, most will prove beneficial over a longer-period of time.

However, be careful not to eliminate necessary business elements. Customer service surveys, internet marketing and operating business software should be items you keep and streamline. These are essential to ensuring your small business’ success, so cutting corners could result in a downfall.

Business expenses can often feel like a burden for your small business, but with diligence, proper financial advice and carefully deliberated decisions, you will shine as a small business owner.

Padgett Payroll Services offers the tools and services you need for your small business. Our payroll managers and tax preparation team offer big support to small, medium and large businesses worldwide. We are up-to-date on all 2015 fiscal year business tax preparation requirements and will help your business be prepared for the next tax filing season.