Prepare for the future
Taxes are right around the corner, and even if it’s only the beginning of the year, planning for the future is never a bad idea.
Some of the documents you’ll need as you go about paying taxes includes previous tax returns, articles of incorporation, accounting records, bank and credit statements, payroll reports, and more.
Make sure you are paying estimated quarterly payments rather than waiting until the end of the year. If you do so, you may end up with penalties and interest that could have been avoided by paying estimated taxes in April, June, September, and December. The IRS says that you need to pay taxes as you receive income, and “to figure your estimated tax, you must figure your expected adjusted gross income, taxable income, taxes, deductions, and credits for the year.”
As long as you’re keeping thorough records and staying compliant with state and federal regulations, taxes should be fairly simple.
No matter what though, it’s always best to consult with your accountant or tax preparer.
Finance guru Dave Ramsey said it best: “Did you ever wonder why taxes are so often mentioned in the same sentence as death? They’re both unpleasant, and you can’t, in the end, avoid either of them. But that doesn’t have to get you down! Your business is killing it and your customers are being served. You just need to keep Uncle Sam and the KGB—oops . . . the IRS—off your back.”
You’ll also want to make sure to keep your documents safe and secure. You don’t want to lose anything in case you need it for the future. Generally speaking, you want to keep documents at least three years (required), but more than likely about seven years. The statute of limitations is three years, so unless there is any fraud or any other major issues, the IRS can’t look at your tax returns beyond the three-year mark.
Choose the right accounting software
There is a lot of bookkeeping software out on the market. One of the most popular being QuickBooks. In fact, some scheduling software can even integrate with QuickBooks. Specifically, ClearCare and AxisCare. While this is a great option, you should do a quick search to see what would work best for your agency.
Some other popular options include BQE Core, Canopy, Oracle NetSuite, Patriot, and Acumatica.
Take charge of your finances
As we’ve stressed already, the most important thing to remember with home care agency finances is that you should be tracking everything. Yes, we mean EVERYTHING. It’s easy to overlook but will play into other areas of your company as well.
Every agency manages their finances in some capacity. The question is: What are you doing to manage your money more effectively and drive your home care business to the next level?