Tips for Bookkeeping

Could you be another small business bookkeeping owner to fill out spreadsheets to keep your records? This is a bit old school. If you’re not too interested in math, and you just know how compelling it is, right? But bookkeepers are signs on your path, they tell you a lot about how far you’ve come. Some people still go through these old stages of bookkeeping and never get where they intended. So, since the importance of bookkeeping makes this process imperative, why not look at alternative routes to make your way a little easier? Here are some simple bookkeeping tips that can help you achieve financial success. Isolating business and personal finances Confused expenses are a common mistake in small business bookkeeping, which makes things a little annoying. You need to open a business bank account and get a separate business credit card. This will help you get rid of these extra confusions, the first thing you do when you start a business. In this way, you can separate your accounts and keep your business’s credit rate growing. Automate things As I mentioned before, filling out spreadsheets and manually adding numbers is an outdated way of dealing with business data. Instead, you can use cloud-based software and do business banking online. You can then sync your bookkeeping software with your business bank account to keep it up-to-date and accurate. The cloud will automatically and securely back up your critical financial data for peace of mind. Getting professional guidance Asking your accountant to check out any efficient and timely accounting software and know you would benefit from it is another way to alleviate the problem. But here, your accountant must be able to set up the software for you to use and show you how to use it. Small Business Bookkeeping Regular Financial Review Ignoring accounts for a while can have many bad effects on you. Outdated invoices, bounced checks and numbers mean nothing. Make sure you check regularly that everything is in order so you don’t miss a thing. Quarterly Analysis Review every bookkeeping and accounting record of your business on a quarterly basis. Watch for any new trends, such as rising or falling sales, annual revenue, or an increase in customers delaying payments. Your accountant can also help you understand what’s going on. Proper bookkeeping will prepare you for a large investment in the future, or if you plan to expand your business to a larger scale. Keeping Business Expense Records Many tax law changes were made in 2018. Therefore, you will need to seek advice on taxation from your accountant. This will help you determine the type of spending you have and how much you plan to reduce over the next year. Keep detailed records of any claims you make. Digitizing and scanning receipts will help you save time. And always use a business credit card for business purchases. This will make expense tracking simple and easy. Use time-tracking software to keep an eye on employee hours. You can also use cloud-based software for this task; clock in and clock out your employee’s device, such as a smartphone, tablet, or computer. There are software created for different industries and you can track things like overtime, PTO and calculating payroll. Technology makes things easier. Be vigilant about receivables Customers need to pay on time. If some of them are late in paying their dues, it could affect the cash flow of your business. Contact the late payer and let them know about the late payment. If customers are experiencing financial problems, discuss with them and develop a satisfactory payment plan to collect at least a portion of the amount due. Know When to Pay To keep your financial success unimpeded, stay away from the things that might be holding you back. Be mindful of your tax deadlines and keep separate parts of your tax bill due to avoid any penalties you may receive in the future. You can sync your cloud-based calendar with the tax calendar on the IRS website so businesses are always on their toes and know when the next tax deadline is. Get Help from SCORE Getting a SCORE mentor can help you not only with small business bookkeeping, but many other financial aspects as well. They can help you with your bookkeeping and even refer you to a qualified local accountant. So if you haven’t already, hurry up. Using these few steps, you can replace traditional bookkeeping with new technological strategies that keep your data accurate, efficient, and up-to-date. However, for successful bookkeeping, it is best to get professional help using the above steps.