Does Your Business Only File Taxes at the End of the Year?
Many small business owners think that filing taxes once a year is enough. They don’t keep monthly records, don’t review their income and expenses, and often don’t really know how profitable their business is. They only worry about the numbers once a year—when their accountant asks for documents to prepare the return.
Why is this a problem?
Operating without monthly accounting is like running a business blindfolded. You don’t know if you’re making a profit, if money is leaking out, or if you’re overpaying in taxes. You can’t make strategic decisions like hiring staff, investing, or expanding because you lack financial clarity.
- You can’t compare monthly income and expenses.
- You don’t know how much you owe in estimated taxes.
- You don’t have reports ready to request a loan.
- You can’t identify if an area of the business is losing money.
What should you be doing each month?
Keeping basic monthly records doesn’t have to be complicated. At the very least, you should:
- Track income and expenses with proper categories.
- Review your monthly Profit & Loss report.
- Reconcile your bank accounts.
- Keep important receipts and documentation.
Benefits of monthly bookkeeping
Having updated financial records allows you to:
- Make informed decisions.
- Avoid surprises at tax time.
- Improve profitability.
- Save on taxes with proper planning.
- Be ready for investors or lenders.
Where should you start?
At ALP Accounting Services, we can help you set up a simple yet powerful structure. Whether you use Excel, Google Sheets, or QuickBooks, the key is to start seeing your business as a real business—not just a hustle.
Don’t let April be the only time you look at your numbers. Every month is a new opportunity to improve your business.
Want a free template to start? Contact us or schedule a call.