How to Keep it Cool this Summer with Your Bookkeeping
As the sun shines brighter and the days get longer, Canadian business owners might find themselves drawn to outdoor activities and vacations. However, amidst the summer fun, it's crucial to keep your business's financial health in check.
Effective bookkeeping ensures that your business stays on track even during the summer months.
Here are some summertime bookkeeping tips tailored for Canadian entrepreneurs:
Stay Organized
With vacations and outdoor events filling up your schedule, it's easy to let paperwork pile up. It’s important that if you don’t have one already, you need to make a habit of organizing receipts, invoices, and financial documents regularly. We’re not fans of paper here so make your life even easier by digitizing your documents using accounting software like Xero for easy access wherever you are. Using the cloud for your bookkeeping keeps the paper to a minimum while also making it easier to keep track of all incoming and outgoing invoices, automating them even to free up more of your time.
Plan for Seasonal Shifts and Changes
Many Canadian businesses experience seasonal fluctuations in the summer, some businesses just flourish in different seasons. Whether it's a surge in tourism-related sales or the spring surge of flower bouquets and wedding season, it’s good to anticipate these changes and adjust your budget accordingly. Use data from past years to forecast revenue and expenses during the summer months, further analyzing and understanding the trends in your business’ growth and financial health.
Keep in Compliance and Ready for Tax Prep
That summer heat can make it feel easy and breezy, but that doesn’t mean you should let things slip through the cracks and pile up. One of the ways to do this is by keeping up-to-date with federal and provincial tax laws and regulations to avoid any compliance issues. You should make yourself familiar with GST/HST regulations, payroll requirements, and any changes in tax rates. Setting a reminder through your email for keywords regarding business regulations and compliance is a great way to notify yourself of any key information or changes made to the legislation. The seriousness of it is that failure to comply with tax laws can result in penalties and fines that can harm your business's finances, and that’s one way to harsh your vibe more when you’re looking forward to sunny times and fun!
Outsource and Trust the Experts
If bookkeeping becomes overwhelming, don't hesitate to seek help from a professional accountant or bookkeeper. Outsourcing your bookkeeping tasks can free up your time and ensure accuracy in your financial records. It’s okay to admit that numbers aren’t your best or aren’t your forte, very few people actually enjoy looking at numbers, let alone analyzing them or calculating them. That’s where a bookkeeper comes in who can help you with your numbers, freeing up your time so you can focus on the areas of your business that need your expertise. If you’re a Canadian business owner looking for someone to take over your bookkeeping, learn about our tiered bookkeeping packages or if you’re a DIYer, check out Navigating the Numbers, my financial fluency course with the walkthroughs and tools designed to empower you in your business’ finances.
Whether you’re keeping good habits or hiring a bookkeeper, it’s important to keep things nice and organized.
The more on top of your finances the easier upkeep it will be in the long run, meaning more time hanging by the beach, soaking up the sun or just spending time harbourside!