Financial Tips for the Lash Artist
For a lot of us, January is the time we start thinking about taxes and how we can make financial changes that will better benefit us in both business and our personal lives.
I had the opportunity to get a few tips from Melissa Shane with @numbersandtech and I want to share them with you!
Hi! I am Melissa Shane with Numbers and Tech LLC (formally ID Pro Accounting) I am so excited to share with you the best accounting tips to make 2020 your year.
During the first week of every month you must reconcile your bank accounts!
This helps you:
- Know how much cash you really have available in your accounts
- Avoid bounced checks (or making failed electronic payments) to suppliers
- Avoid bank fees for insufficient funds
- Know if customer payments have bounced or failed, and determining if any action is needed
- Keep track of your outstanding checks and following up with payees
- Catching any bank errors
So go download all your bank and credit card statements today!
Next up, tip number 2. WHY SHOULD I USE A CREDIT CARD INSTEAD OF MY DEBIT CARD?
Credit cards provide layers of security, fraud protection, and expense management that debit cards do not.
For example, a debit card gives anyone carrying it access to the entire cash balance in your company’s checking account. Many credit cards allow you to issue employee cards with set spend limits and monitor spend in real time. A nice perk is to earn rewards points on every transaction that you can redeem for travel benefits. Debit cards typically don’t offer any return on your spend—it’s like leaving money on the table.
TIP THREE! Did you know January 31 is the deadline to mail W-2 tax forms to all your employees and 1099s to any vendor you paid at least $600 for services in 2019.
They don't have to physically have the forms by that date, but the deadline to post date them is Jan 31.
Have you mailed yours yet?
And lastly, tip number 4! And its a tip for all the NEW BUSINESSES!
Open a Business Bank Account. When you mix personal and professional finances, the results can be disastrous. One of the first steps you should take when starting a new business is opening a new bank account under your business‘s name.
Having a dedicated business bank account, including checking and a credit card, saves you precious man-hours when it’s time to tally up deductible expenses. It’s tough to do out of the gate, but this small business accounting practice will save you major headaches down the road.
Keeping your personal and professional finances completely separate makes tracking the flow of money a breeze.