21st Century Taxes: A Bookkeeping Checklist for the Digital Age

In the digital age, many small businesses and individuals are still relying on old-fashioned bookkeeping techniques and hand-written ledgers to manage their accounts. Of course, we understand. Making the shift to computerized payroll or digital bookkeeping can feel daunting after years of doing things the way you’re used to. But to do business or thrive when tax season rolls back around again as a modern entity, you need 21st-century help.

Thankfully, you’re not alone when you make the switch. Leadingham Rodgers CPAs are well-versed in all things bookkeeping, from the latest accounting software to personalized consulting services. Here are our tips for bringing your books into the modern age—use this helpful checklist to take the measure of your financial fitness and get started today!

Digital Ledgers

While many aspects of bookkeeping have remained untouched over the years, one of the major changes has been the shift towards digital tax filing. The IRS now actively recommends electronic filing over filing by mail. Taking their recommendation is especially important if you’re filing taxes in multiple states.

By implementing digital ledgers, those who need access to certain documents like income and sales records, including gross receipts, payroll receipts and commissions to subcontractors, and business expenses will be able to access them quickly and easily. Likewise, when tax season comes along, your business can seamlessly hand over the necessary data to your accountant.

Accounting Software

If you have yet to take your company’s accounting endeavors online, now is the time to do it. We recommend downloading software to streamline your ledgers across your organization. There are many options on the market, and it may be helpful to discuss them with your CPA to choose a system that best suits your needs.

The industry mainstays are Intuit QuickBooks, Xero, and FreshBooks, each with unique features that give you peace of mind when tracking your finances. Accounting software will provide you with basic accounting features and payroll services to keep your finances organized, monitor your progress, and flag any issues that surface in your day-to-day operations.

Cloud Storage

Cloud storage is a method of computer data storage, that keeps important information backed up in remote online databases rather than your personal computer. Cloud storage is useful not only in accounting, but all aspects of your business. Migrating to the cloud can actually save you money on IT costs, and it’s designed with maximum security in mind, making it safer than local storage. You can also store your tax forms and all financial transactions in the cloud for effortless bookkeeping.

Similarly, cloud storage makes it easier to grow your business while protecting your most sensitive data. If your business outgrows an office space or wants to take on more clients, cloud storage has the infrastructure to expand with you. Cloud storage is a no-brainer when it comes to peace of mind since your data will never go missing or be vulnerable to damage by fire, flood, or electrical problems.

Computerized Payroll Services

These days, it’s hard to find a company that isn’t relying in some way or another on computerized payroll services. But as your business grows, your needs change, and the type of payroll software or system you use might need a refresh, too. With shifting legislative changes, compliance requirements, and modern reporting technologies, even small businesses should take some time to audit their payroll processes and adjust.

You have a lot of options here, from in-house work with advanced software like QuickBooks and Gusto to completely outsourcing your payroll to an online company. Of course, with online services, there typically won’t be someone on the other end of the phone to answer your pressing questions. Choosing a dedicated Certified Public Accountant to help you manage your books gives you the benefit of a dedicated, personalized experience.

Organize Your Finances with Leadingham Rodgers

Whether you are using computerized payroll services or not, it’s beneficial to work with a business accountant to ensure your finances are in tip-top shape. Our team at Leadingham Rodgers can help you file your taxes, provide financial planning, and get your company’s finances digitally organized. We are ready to help your business reach its full potential in the 21st century!

Never Miss a Deadline with Leadingham Rodgers!

Never miss an important financial deadline with the help of our qualified team of experts at Leadingham Rodgers Certified Public Accountants. Get personalized support and advice for your financial goals. Call us today at 334-721-2548 or contact us online to begin maximizing your business’s time and money!