Pauline Ho, CPA and head accountant at Laus Consulting in Orlando, FL, highlight the small business accounting essentials that help save time and boost cash flow. For more information please visit http://lausconsult.com
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In a recent interview, leading CPA Pauline Ho, founding parner at Laus Consulting in Orlando, FL, revealed some small business accounting essentials that help save time and boost cash flow.
For more information please visit http://lausconsult.com
One of the most important things to keep in mind, according to Ho, is to separate business and personal expenses.
When asked to elaborate, Ho said, “The main reason to keep business and personal expenses separate is to ensure you don’t complicate your accounting: if you have a dedicated bank account specifically for business transactions, it’s easier to calculate deductible business expenses.”
“In other words, when you are using one bank account for personal and business use you can’t see the wood from the trees. This also means you may claim certain expenses are for business when they’re not. In certain cases, if done incorrectly, you might incur a hefty IRS penalty as much as 75% of the additional tax owed,” she explained.
Ho also made the point that it’s essential to set aside time to update the books.
“Make sure that you schedule a dedicated time weekly to get receipts and invoiced receivables in order, so you don’t get behind on accounting tasks. If you don’t do this, then everything will pile up when doing taxes, which will cause unnecessary work and stress.”
“This is why we do this for our clients in most cases. Instead of them having to worry about how to do this correctly or wondering if they have made the most of their tax deductible expenses, we do it for them,” Ho added.
Another crucial tip to keep in mind, according to Ho, is keeping track of and monitoring invoices and receivables.
“If there is one thing that a lot of businesses don’t keep on top of but that has the biggest impact to their cash flow is ‘accounts receivables’,” Ho said.
“For example, sending out an invoice doesn’t guarantee payment. In other words, knowing which customer has and hasn’t paid and making sure you’re sending friendly follow-up reminders to customers and clients is really essential.”
“Automated systems really make a huge difference in this area and that’s a big bonus our clients get when we help them with this ,”Ho added.
Source: http://RecommendedExperts.biz
Contact Info:
Name: Pauline Ho
Email: Send Email
Organization: Laus Consulting Services LLC
Address: 879 Outer Rd B, Orlando, FL 32814, USA
Phone: 407-401-9768
Website: http://lausconsult.com
Source: MM-REB
Release ID: 88923989
