Business owners and entrepreneurs have been meeting to explore and position their businesses for contracts with the assistance of Dr. Angela K. Chambers. This week, Faith Matlock Johnson will discuss the importance of good bookkeeping; getting started, or getting things in order. The 6 Week course is presented by the Greenwood Chamber of Commerce, Inc. The Chamber is committed to creating opportunities and resources for small businesses.
Accounting is crucial for all businesses. Understanding the basics as a business owner is crucial. Knowing your numbers is important to understanding where you are and the condition of your company. Additionally, having a tax plan is vital and can aid in creating a better financial picture for a company, in particular, a small business and/or a startup.
Faith Matlock Johnson, the founder of Gabby Dade, is an expert in bookkeeping and financial management. With years of experience working with businesses of all sizes, she has helped numerous entrepreneurs gain control over their finances and make informed decisions for their companies.
Why is Good Bookkeeping Important?
Good bookkeeping is the foundation of a successful business. It allows you to track your income and expenses, monitor cash flow, and make accurate financial projections. By keeping your books in order, you can:
- Ensure compliance with tax regulations
- Make informed business decisions based on accurate financial data
- Identify areas of improvement and cost-saving opportunities
- Facilitate the process of obtaining contracts and financing
The Basics of Bookkeeping
For business owners who are just getting started or need to get their books in order, understanding the basics of bookkeeping is essential. Here are a few key concepts to keep in mind:
- Record all financial transactions: Every business transaction, whether it’s a sale, purchase, or expense, should be recorded accurately and in a timely manner. This includes keeping track of invoices, receipts, and bank statements.
- Separate business and personal finances: It’s important to keep your personal and business finances separate. This means having separate bank accounts and credit cards for your business, and not using business funds for personal expenses.
- Use accounting software: Investing in accounting software can simplify the bookkeeping process and provide you with valuable insights into your business’s financial health. There are many user-friendly options available, such as QuickBooks and Xero.
- Reconcile accounts regularly: Reconciling your accounts on a regular basis ensures that your records match your bank statements. This helps identify any discrepancies or errors that need to be addressed.
- Seek professional help if needed: If bookkeeping is not your area of expertise or you simply don’t have the time to manage it yourself, consider hiring a professional bookkeeper or accountant to assist you.
The Benefits of a Tax Plan
In addition to good bookkeeping practices, having a tax plan in place can significantly benefit your business. A tax plan involves strategizing and managing your tax obligations to minimize your tax liability while remaining compliant with tax laws. Some benefits of having a tax plan include:
- Reducing your tax burden
- Maximizing deductions and credits
- Ensuring timely filing and payment of taxes
- Avoiding penalties and interest
- Planning for future tax obligations
By working with a knowledgeable tax professional, you can develop a tax plan that aligns with your business goals and helps you optimize your financial position.
Join the 6 Week Cohort
If you’re a business owner or entrepreneur looking to improve your bookkeeping practices and develop a tax plan, don’t miss out on the opportunity to join the 6 Week Cohort led by Dr. Angela K. Chambers and featuring Faith Matlock Johnson as a guest speaker. Seats are limited, with only five remaining.
By participating in the cohort, you’ll gain valuable insights, practical tips, and personalized guidance to help you take control of your finances and position your business for success.
To secure your seat in the 6 Week Cohort: Contracts, Let’s Get Your Books in Order, register today.
Class is Monday night 6:00 PM – 7:30 PM, 102 N Greenwood Ave., 2nd floor (Down the hall from the Greenwood Women Business Center).