I want to share a story with you that I know will ring true for many of you that produce a shoe box full of receipts and pay big dollars for the CPA to make sense of the contents in the box.
To be truthful I was using the shoe box accounting systems where friends would laugh as I opened the box carefully and shut it quickly to squeeze yet another receipt in.
The box was full to the brim and I had made my way in for my appointment with the CPA and faced him with a large pad of paper in front of him as I tried to recall events, dates and different expenses I was trying to write off. Then the Accountant took off his glasses looked me straight in the eye and said “I am only as good as the information you give me!”
“Just imagine in this room if I had the tax department sitting around the table would your stories satisfy him?”
This truth hit me straight between the eyes I can still remember the sinking feeling when I thought that my poor record keeping would get me into hot water sooner or later and I virtually became obsessed about finding a virtual assistant to help get my house into order.
Tips to Get Your Started:
It’s always hard starting anything new but to be prepared to spend only an hour a day to tackle this task, as it will overwhelm you.
Definitely do not do this task late at night or you will find you can’t sleep.
Go purchase either a filing cabinet or do what I did and buy color-coded concertina boxes so you can easily find the year that you’re looking for.
Clear the kitchen or office desk and first sort out in year then date order.
What I did is look for a virtual assistant bookkeeper and found much more than I bargained for she is she is a qualified CPA and she journals all of my receipts straight away directly onto QuickBooks and for the Australian clients MYOB.
We now have clients all around the world with many like how I was and they either started out with good intentions but just either got busy or lost the enthusiasm for book work and started to fall behind.
A good bookkeeper will save you money two ways as there will be less for the CPA to do, the cost of a virtual assistant bookkeeper is thirds of the cost of an accountant. The records will be kept beautifully and will stand the scrutiny of the tax office.