Bogged down with Paper and Receipts?

As we close 2010 and look to 2011, many small businesses and individuals are thinking of ways to implement ideas for an organized new year. Now is the time to take those ideas and put them into action. There is nothing more frightening then a desk filled with receipt after receipt, mail envelope after mail envelope. Going paperless, though it sounds like a lot of work, is much easier than you think and can really streamline your procedures and make for a more organized work flow. There are many things to consider when making the commitment:

1. How much of your office do you want to convert and is it something you want to implement going forward or convert previous years?
   
2. What new equipment will be needed and does it fit within your budget? A scanner that can accommodate how much paper you will be scanning is needed as well as a document management system to hold all your digital files.
   
3. How will you handle going paperless on an ongoing basis? Policies and procedures will need to be changed to keep your office paperless on an ongoing basis.
   

The main benefit is cost savings. Paper costs money; for printing, mailing, paper supplies, storage for all the paper and storage space, this can all be reduced. By having all records in a central place, allows you to have quicker response time to clients or customers because the information is easily accessible.

The amount of space it takes to store all of this paper will be greatly reduced. Of course this will be a gradual process, especially if you plan to implement on a "going forward" basis. Document security is an added advantage but it is important to make sure you have a good back-up plan for all your digital files and records. There are many inexpensive options such as box.net, dropbox.com or mozy.com.

PacWest Accounting has already started the transition for many of its small business clients and individuals looking to eliminate the headache of papers and receipts by implementing a paperless system. Have I tweaked your interest at all? Stay tuned for more ways to reduce the headache of mounds of papers and receipts and streamline your businesses or personal information so that you can focus your time on what really matters. If taken one step at a time, switching to a paperless office doesn't have to be as scary as you think.

 

 

 

It's not too late

It is hard to believe that year-end is fast approaching and 2011 is staring us in the face. Some of you have probably thought about it for a second, others might not even be fazed by it. If you are a small business owner, it is an important time to see where you are at financially for a number of reasons. Take the time to make sure you have your books up to date, make sure you are not missing any valuable deductions. It is also a great time to see how you are going to end the year versus how you forecasted for 2010. Have you achieved all you thought you would or did you fall short? What were the reasons why you might not have ended the year how you thought? What can you do a little differently for next year's planning? I have said it before in previous posts, it is most essential for small business owners to write things down. It holds you accountable, especially at year end to see where your short falls were and more positive, all the you accomplished.

Other tips:

Increase your expenses by purchasing those items you will be need to buy in the immediate future to maximize the deductions for this year. It might be a good idea to stock up on supplies OR pay bills before year end such as cell phone bills, utilities, or rent.

It might be a good time to contribute to a Retirement plan or if you do not have one yet, set one up. You need to be certain to check the contribution limits for the type of plan you.

Of course all these tips will apply differently to each business owner's situation

Take the time to review the best strategy with a professional advisor and make the most of the year-end tax planning for your small business.