Be prepared to handle a lot of money in your job as a Professional Legal Nurse Consultant. Start off right with a good accounting system and you’ll never have to worry. You don’t want to get yourself into a bind trying to piece together how much you billed and when. Worse yet, is trying to figure out how much you actually collected.
The Tax Man Cometh so be sure you’re in a good position from the start. Or if you’ve already started, clean up your accounting from here going forward by following these three methods.
Three methods to keep your accounting on track
1. Use a cash versus accrual accounting method. Decide how you’re going to keep track of the money coming in.
Simple put: Cash accounting reflects transactions when the cash flows into or out of your business. Accrual accounting reflects revenue as it’s earned and expenses as you incur them REGARDLESS of when you actually obtain the money.
It’s far easier for Professional Legal Nurse Consultants to use a cash accounting method than an accrual accounting method.
For example, with cash accounting, as you receive the money, you record the date. As you purchase an item for your business, you record the date.
2. Open up a business bank account. Use the bank’s online app for mobile deposits. Get to know the branch manager, bank tellers, and bank representatives. This way, if something does go awry, you might be able to handle over the phone since they know you.
3. Keep track of all transactions daily. As a matter-of-fact, in my experience it’s best to check your bank’s app every morning so if there’s a discrepancy you’ll have time to address during banking hours.
Another of my experiences has been that “things take longer than you think”. Allow plenty of time to fix things as you might have to actually go to the bank in-person which would account for time there and bank, wait time, and time to speak with the bank’s representative.
The key to accounting success is recording everything timely. This means, when you send out an invoice, notate the date sent. When you receive the check for your invoice, notate the date received. When you buy something you need in your business, notate the date purchased.
By the end of the year, your “books” will be completely up-to-date. This will make your life indefinitely easier come tax time. You’ll be successful as a Professional Legal Nurse Consultant!
P.S. Comment below with your accounting hints. Or, email them at info@jurexnurse.com and we’ll be happy to share them with your PLNC colleagues.
