A smart business owner knows that accurate bookkeeping is essential to their business. They know that without regular bookkeeping their business is vulnerable to serious cash flow problems, inaccurate tax filings and poor finances.
But despite the known risks of avoiding it, bookkeeping is often seen as time consuming, it doesn’t always appear to be as valuable as it really is.
With the right bookkeeping tips you can reduce the amount of time it takes and get more out of it.
6 Bookkeeping Tips for Small Businesses
1. Be consistent
However you manage your bookkeeping it is important to be consistent. This will mean that whoever looks at, or manages your books can follow and understand it. This often saves your accountant hours of hassle when it comes to filing your tax!
Decide on your way of doing things and stick to it.
2. Make use of Software
With the right software you could streamline your bookkeeping, reduce errors and keep a better track of your business finances.
3. Snap all Receipts
Small expenses can all add up, which is why it’s important to keep track of them so you can claim against your tax expenses. There’s lots of ways of keeping track of your expenses, some people choose to use a notebook or store them in a file. A growing trend amount business owners is to use your phone to snap pictures of each receipt.
This way you can track each expense as it comes in and you’re less likely to lose them or be lumbered with hundreds of receipts. Try Smart Receipts.
4. Dedicate Time to Your Finances
Give yourself time each week or month to review your business finances. If you hire a bookkeeper this is a good time to go over any financial reports and discuss any financial concerns before they become a problem.
5. Avoid Using Cash for Purchases
Wherever possible always make business purchases with a debit or credit card. This makes it far easier to keep track of your expenses, rather than paying by cash. You can also print a statement at the end of each month which will have all of your purchases itemized.
6. Hire a Professional Bookkeeper
A lot of people prefer to manage their bookkeeping themselves, however there are a lot of advantages to hiring a professional and many you may not even realize.
- A professional bookkeeper can identify areas that you could save money.
- A professional bookkeeper can help to spot potential problems before they arise.
- A professional bookkeeper can help you to identify areas you are losing money.
All in all, a dedicated bookkeeper can help you improve your bookkeeping process and help you get more from it.
For further advice about managing your bookkeeping speak to your local professional. Balanced Books by Joe is an experienced small business bookkeeper with over 15 years experience. Schedule a discussion with your Meriden Bookkeeper today: