Kimbrough Accounting Services

09/29/2026

📊 Bookkeeping Tip: Know your DSO (Days Sales Outstanding)

Your A/R balance shows how much you’re owed — DSO shows how long it actually takes to collect it. Formula: (Total A/R ÷ Total Credit Sales) × Days in Period.

Net-30 terms but DSO creeping past 40-45? That’s real cash sitting in your customers’ pockets, not yours. Track it monthly — a rising DSO is your earliest cash-crunch warning, showing up weeks before it hits your bank balance.

👉 Calculate your DSO this week. Trending up? Tighten your collections process before it becomes a cash flow problem.

09/21/2026

🚨 S-corp owners: paying yourself is not optional.

If you’re structured as an S-corp, the IRS requires a real W-2 salary through payroll for the work you do — you can’t just take profit distributions and call it a day. Setting your salary too low (or skipping it) is one of the biggest audit red flags for small S-corps, and getting caught means back payroll taxes plus penalties.

✅ Do this instead: look up comparable salaries for your role/industry, run consistent payroll for that amount, then take remaining profit as distributions.

Save this for your next payroll review 📌

09/19/2026

Working from home? The home office deduction covers part of your rent, utilities, and insurance — but only for space used regularly and exclusively for business. Measure your home office square footage now, so at tax time you can compare the simplified method ($5/sq ft, up to 300 sq ft) against the actual-expense method and claim whichever saves you more.
Don’t guess at tax time — measure once, save the number, and you’ll have it ready for years to come. 📏

08/29/2026

Don’t wait on 1099s until January! If you paid any contractor $600+ this year, get their W-9 BEFORE you send the first payment, not after. Tag 1099-eligible vendors in your bookkeeping software as you go (one checkbox in QuickBooks) so year-end reporting is a two-click report instead of a treasure hunt.
Save yourself the January scramble — build the habit now. 💼
#1099

08/28/2026

08/27/2026

📁 Bookkeeping Tip of the Day: Ditch the shoebox of receipts — it’s costing you more in accountant fees than you think.
Set up one simple digital folder system (Year › Month) and drop every receipt, invoice, and bank statement in within 24 hours of getting it. The IRS wants business records kept at least 3 years — aim for 7 and you’ll sleep easy if you’re ever audited.
📌 Takeaway: 5 minutes of filing today saves hours of digging (and stress) later.
Save this for your next “where did I put that receipt” moment! 👇

08/26/2026

📊 Bookkeeping Tip: Q3 estimated taxes are due September 15 — mark it now. If you’re self-employed, set aside 25–30% of your net profit each month in a separate “tax fund” account so the payment doesn’t ambush you. Run a quick P&L before the deadline to nail down your real number instead of guessing.
Don’t wait until the deadline to find out what you owe — your books should already have the answer. 💰

08/25/2026

💰 Today’s Bookkeeping Tip: Budgeting Edition
Your budget shouldn’t live in your head — it should live in a spreadsheet you actually check. Try the “Profit First” shortcut: the moment revenue hits your account, sweep set percentages into separate buckets for profit, taxes, owner pay, and operating expenses. Whatever’s left in the main account is what you’re actually allowed to spend. Revisit those percentages every quarter as you grow — a budget that never changes isn’t a budget, it’s a guess.
👉 Set it, sweep it, adjust it quarterly — don’t just wing it.

08/24/2026

Payroll tax money isn’t your money 💰
The moment you run payroll, sweep the withheld taxes into a separate account you never touch until they’re due. It’s the single habit that keeps small business owners out of IRS trouble — no scrambling, no penalties, no surprises.
Set it up as an automatic transfer on pay day and take the decision-making out of it entirely.