Bookkeeping for email & SMS marketing companies can be time-consuming. However, it is an essential part of monitoring the financial health and potential for growth of your marketing company. The following are a few tips that can help you and your accountant for email & SMS marketing companies take some of the stress out of bookkeeping.
Tip #1: Keep Business and Personal Accounting Separate
Keeping business and personal finances separate is at the heart of tax planning for email & SMS marketing companies. Remember, your SMS marketing firm is taxed differently than your personal finances.
Keeping personal accounting and accounting for email & SMS marketing companies separate allows you to have a clear picture of the financial performance of your business. When these finances are not separate, it can become challenging if either your business or your personal finances are audited by the IRS.
It is easier for a CPA for email & SMS marketing companies to file taxes for your business and produce the documents the government may request. Keeping business and personal accounting separate makes it easier for your accountant for to also analyze and manage your businesses cash flow.
Tip #2: Track Business Expenses Weekly
Bookkeeping for email & SMS marketing companies is easier if it’s done regularly. If you are like many business owners, the idea of tracking expenses is not enjoyable. However, tax planning for email & SMS marketing companies can become a little tricky if tracking business expenses is put off until later.
One of the primary reasons why businesses fail is because they lack cash. Bookkeeping and accounting for email & SMS marketing companies, when done regularly, could help you manage your expenses. This will prevent you from getting to the end of the month and finding out that your expenses surpassed your income.
If you track expenses daily, you can control losses and see how your marketing firm is spending money. These daily figures become the basis for determining if you are under or over your monthly budget. Regularly monitoring these figures may allow you to make adjustments to your monthly budget midway through the month to keep things on target.
Tip #3: Categorize Your Business Transactions
A good accountant for email & marketing companies understands the value of categorizing business transactions. This gives decision-makers within the business the data they need in order to make a good decision.
When tax time comes, the IRS is only concerned about broad categories. You will see that many CPAs for email & SMS marketing companies only use general categories in their bookkeeping. However, if you only use general categories in your bookkeeping, you are limited to making general decisions. Detailed categories and subcategories will outline how your marketing firm is spending money. This can aid in making better decisions going forward.
Bookkeeping is not about just doing the bare minimum. It requires time invested in your business that will pay off by allowing you to track growth and make decisions from a well-informed position.
Fusion CPA understands the vital role bookkeeping plays in your email & SMS marketing company. We work with small to medium-size businesses in your field. We operate in Atlanta, Georgia, and in other parts of the United States. We offer CFO advisory for email & SMS marketing companies designed to help you better understand your accounts, tax planning, and financial planning. You can learn more about our services by clicking the button below to schedule a complimentary discovery call today!
This blog article is not intended to be the rendering of legal, accounting, tax advice or other professional services. Articles are based on current or proposed tax rules at the time they are written and older posts are not updated for tax rule changes. We expressly disclaim all liability in regard to actions taken or not taken based on the contents of this blog as well as the use or interpretation of this information. Information provided on this website is not all-inclusive and such information should not be relied upon as being all-inclusive.