Return to: Blog

Start 2023 Right with These Three Bookkeeping Tips

January 09, 2023

January is a fantastic time to make a bookkeeping plan for the new year. Motivation levels are high and there hasn’t been time to fall behind yet!

Think carefully about what your biggest road blocks were last year. Often the frustrations of repetitive tasks or the daunting load of becoming months behind on bookkeeping can be addressed by investing in software or seeking additional help.

Here are three quick tips that can help set you up for a smooth year.

1)      If your business involves making frequent purchases, either by owners or employees, consider saving time by using a receipt tracking software. One good option is Dext. This type of software allows you to upload receipts by mobile app or e-mail. The software then uses OCR (optical character recognition) to extract text from the image and automatically imports that data into your accounting software.

2)      Always collect W-9s before paying a contractor. With 1099-MISC and 1099-NEC due on January 31st, many business owners realize too late that they do not have the necessary information to send out 1099s and then have to scramble to get in touch with contractors they may not have spoken to in months. To avoid the January scramble, it is best practice throughout the year to have all contractors complete W-9 forms, whether you think you will end up paying them over $600 (the threshold beyond which a 1099 is required) or not.

3)      Set aside dedicated time to stay on top of bookkeeping and accounting tasks. It is not uncommon for businesses to seek out bookkeeping help mid-summer, when they realize they haven’t been able to stay on top of the monthly accounting cycle. Take stock of how much time proper bookkeeping takes for your business and set aside an appropriate amount of time each week specifically for that. If it isn’t realistic for you to achieve that weekly goal, consider outsourcing those tasks so you can focus elsewhere within your business.

If it’s time for your small business to consider outsourcing your bookkeeping tasks our team at Convergent Accounting can help! We can save you valuable time by making sure your bookkeeping stays up to date and accurate through monthly services that are tailored to your needs.

For more information about how Convergent Accounting can help take your business or nonprofit to the next level please email info@dh-cpa.com.

Written by Genevieve Smyth, Bookkeeper, QuickBooks Online Certified ProAdvisor, Bill.com Certified Advisor

This is shared as a service to our clients, business associates and friends. Recipients should not act on the information presented without seeking prior professional advice. Additional guidance may be obtained by contacting Davis & Hodgdon CPAs at 802-878-1963 (Williston) or 802-775-7132 (Rutland).