Why should I keep my books monthly instead of at year end?
Short answer: Monthly books catch errors while they are fixable, support quarterly tax estimates, and make the year-end return faster and cheaper.
Books caught up once a year tend to have the same problems: missing receipts, personal and business spending mixed together, and accounts that do not reconcile to the bank.
Monthly reconciliation gives you:
- Accurate quarterly estimates instead of guesses.
- A profit and loss statement you can use to make decisions during the year.
- Clean records if a lender, buyer or the IRS asks for them.
- A shorter, lower-cost tax return in the spring.
Our bookkeeping team reconciles QuickBooks every month, and our small business package includes the business and personal returns.
General information from Davis Schuler & Associates, LLC, not advice for your situation. Tax rules and thresholds change; confirm the current rules before acting.
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