4 Spring Cleaning Tips for Your Business
With the rising temperature comes the unfolding of budding flowers which shied away during winter. The reinvigorating earthy scent of the warm wind that pulls and teases you to brighter and longer days that lie ahead. If this is the opening scene to a movie, now’s the time to push that window wide open and feel the sun and morning dew on your face.
Do you feel that sudden bout of energy that makes you want to turn the house upside-down? Yes, it’s that time of the year again – spring cleaning.
Well, we wouldn’t want that energy to go to waste, so aside from your house, why not spring clean your business as well?
Here are a few tips on how to make your small business spick-and-span this spring or any other time of the year.
Organize Your Tax Records.
Organize your tax files according to the year they were filed and consider archiving those that go beyond the period of limitations prescribed by the Internal Revenue Service (IRS). The following apply to records on income tax returns.
- General Rule: Three (3) years
- If you file a claim for credit or refund after you file your return: Three (3) years from filing your original tax return or two (2) years from the date of tax payment, whichever is later
- If you file a claim for a loss from worthless securities or bad debt deduction: Seven (7) years
- If you do not report income that is more than 25% of the gross income shown on your return: Six (6) years
- If you do not file a return or if you file a fraudulent return: Indefinite retention
Keeping tax records is important as they prove that you actually filed your return, and help in the preparation of future tax returns and in making computations when filing an amended return. That’s why we do not recommend these records’ disposal, but only their digital archiving once the applicable period of limitation is over.
Declutter Your Budget Allocations.
Review your budget and consider cutting items that are not urgent or necessary. You can also look at your budget allocations opposite your year-to-date data to see if there are portions that can be re-allocated. Are your advertisements performing better on Facebook than on Google? Maybe you could chop off a chunk from Google and re-allocate it to Facebook. Is that office renovation absolutely necessary if most of your employees are remote? This project can probably be scheduled for next year.
This is also the perfect time to check your books and ensure that you are not spending more than you are earning.
Brush Up on Your Accounting Practices
Speaking of budget, you might want to consider investing in accounting software that will help you streamline your accounting processes. Aren’t you tired of having to manually monitor and spring clean your finances?
Keeping track of finances can be quite a challenge for a small business owner who is usually marketing, finance, and operations officer rolled into one. Whether you’re on cash-basis or accrual accounting, accounting software can help simplify your processes, automate tedious tasks like payroll, invoicing, and taxes, manage your inventory, and monitor your expenses and revenue.
Polish Your Business Plan.
Spring cleaning is also the best time to revisit a shelved business plan. A brilliant idea that could grow your business might just be sitting somewhere in your dusty drawers or computer. Check it out and with a little polishing, it may become the next big thing.
Now, you’re all set for spring cleaning (well, for the most part). There are still many aspects of your business that need to be looked into, like double-checking your income declaration and tax liabilities and sweeping through your books. At MBE CPAs, our spring cleaning service for businesses is available all year round. Contact us now and we’ll comb through your finances and business until they’re squeaky clean!