While the idea of spring cleaning might make you think of kitchen cupboards and closets, there’s another kind of spring cleaning you can give your attention to (and we think it might be even more important!)
While the hot and cold spring weather doesn’t seem to be able to make up its mind just yet, here are 5 things you can make up your mind about right now – and you can do them all without having to guess if you need a jacket or not!
Here are five financial spring cleaning tasks you should make time for ASAP:
- If you have already filed your income tax returns, you can clean up by shredding statements, bills and other financial records. Go through your piles and drawers of papers, only keeping the documents that are absolutely necessary. As a rule of thumb, hang on to tax records and supporting documents for seven years. If it gives you peace of mind to keep hard copies you can, but the IRS is fine with digital copies. Remember, there is no need to hang on to paper records forever. If you are worried about not having something for reference, just scan it or make a digital copy of the record and then shred it. Note: Lots of groups and businesses host a day to bring your papers to a shred site. Check to find out if there’s one happening near you soon!
Clean up your accounts
- During tax season, it gets crazy trying to get your records in order for your tax accountant, and that sometimes means that you fall short when trying to keep up with your current accounting. Take the time now to catch up and clean up
Touch base with your tax accountant
- Yes, you just finished filing your returns, but now is the time to look at the first quarter’s results and see if any changes need to be made to your estimated tax payments going forward. With the tax rules changing, this is especially important this year.
Upgrade your accounting system
- Don’t be caught unsupported. Each year in May, Intuit sunsets all of its products that are three years older than the current product. This means that all versions of QuickBooks 2015 (Pro, Premier, Enterprise, Accountant and Mac) will no longer be supported as of May 31, 2018. If you have Intuit services that you integrate with your 2015 QuickBooks software, such as Desktop payroll services, credit card processing, bank downloads and others, they will no longer work. But don’t worry, we can help you upgrade and show you new features in QuickBooks 2018.
Review your current financial reporting
- Your business’s financial statements are your best indication of its current financial health and your most effective tool for making critical business decisions. At a minimum, you need to know if your business is making a profit or losing money. Also, knowing what lines of your business are profitable are key. Review the financial information you are getting from your accounting system and determine if changes in processes and/or reporting are needed.
While most people don’t think of finances as fun, the biggest reason they don’t is because they’re always behind and disorganized! Take advantage of this “spring cleaning” mindset and get financially organized right now. Not only will it make you feel better, but it just might help you find ways to make (and save) more money – and what’s more fun than that!?