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I often run into business owners that want to spend without tracking expenses. When you hire an accountant, you should be ready for change. Yes, an accountant can continue with a system you have created but if we notice the system you have is non-compliant to state and federal regulations we need to step down if you are not willing to accept change.
The most significant issues with many business owners are that they don’t’ want to track their spending, report all income, and properly manage taxes. I believe a there is a false misconception that you can show up and do and spend what you want to and everything else will fall into place, but bankruptcy usually is soon to follow.
When managing financials, you must participate when it comes to your spending. An accountant will help you track your receipts, make your bookkeeping entries, process payment, collect and match payments, reconcile accounts but we can’t create expenses for you. You must keep your receipts to send to the person handling bookkeeping, and you must tell us what you purchased and why. Many people want to spend without looking at spending. Honestly, it will be hard to maintain your financials this way. We spend more when we don’t know the truth about our numbers.
Accountants can handle payment of overhead expenses that generally occur as well as the reoccurring cost of good sold or cost of services sold. However, if your expenses vary and occur as you spend, you will need to help us with the expenses. The receipt is also important, and software today is great with helping business owners track receipts. If you keep word documents instead of accounting software, use digital receipt tracking (take a picture and save it in a folder on your computer or in a secure cloud). Your spending per client is important to billing. If you know what you spent, you can attach that amount to the client’s invoice for reimbursement.
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