March 2, 2021
The job of business bookkeeping is considered as a burdensome task by most of the small- business owners and simultaneously they don’t even like poring over spreadsheets. The business’s books are the only scorecards which can make you aware on how well your business is doing. But sometimes some business owners are simply not “numbers persons” and hence for them bookkeeping seem like a complicated surgery. So these business owners hire professionals from top bookkeeping firms to avail the best bookkeeping services offered by them.
Some popular bookkeeping tips
- Separate the business finances from the personal finances: The most common mistakes made by the small business owners while bookkeeping is the co-mingling of expenses and incomes which might cause a huge problem for the business in the future. So immediately after you open your startup, you must open business bank account as well as get a separate credit card for your business.
By doing this, you will not only separate your account but your business will also get its own credit rating.
- Use accounting software such as Quickbooks: Learn the basic things like how to input checks, reconcile bank accounts, create reports and other data on this software and then hire a bookkeeping services provider who will serve all your needs and will also hand the books over to a certified accountant who will provide you with the tax plans at the end of the year.
For these reasons hiring professionals from the companies which provide both bookkeeping and tax service can be a wise decision. Besides hiring a professional bookkeeper with a fixed monthly fee can be also a good choice as they can surely do the job in a more proficient as well as in a cost effective way.
- Automate whatever you can: Gone are the days when all the data were being entered into the spreadsheets manually. So, you must use cloud-based bookkeeping software in order to do your business banking online. Synchronizing your bookkeeping software with your business bank account can always provide you with accurate as well as up-to-minute records. Other than that, with cloud, the critical financial data of a business can be backed up automatically and safely off-site.
- Scan your receipts, business cards and other important paperwork: Use proper software and tools like NeatReceipts which can import information directly to QuickBooks and help you to save your time and also audit-proof your record.
- Avoid cash: When you use cash for your business transactions then you might lose the track of potential write-offs. To avoid these kinds of circumstances, make sure to use your business debit and credit cards religiously.
In case you have to pull money due to some emergency, make sure to update the receipt on QuickBooks and also make a note on the purpose of the withdrawal.
- Do a quarterly review: It is very important for a small business owner to take an in-depth look at their bookkeeping and account records to check the trends, such as growing or declining sales, year-over-year revenues, or any increase or decrease in late- paying customers.
As a business owner, you might also discuss with your accountant so that he or she can inspect the present condition make you prepared for any capital needs in the future such as buying new equipment or moving to bigger location.
- Keep a close eye on accounts receivable: When you have too many late paying customers, your businesses cash flow can dry up fast. Pay proper attention to track when the receivables are due and hence contact the late-paying customers immediately to nudge them along. If your customers are going through financial crisis, the make proper payment plans for them to get at least some amount of what you owe
- Stay on top of tax deadlines: Always be prepared, plan ahead and set some amount of money for any kind of anticipated tax bills. Pay all the taxes on time to avoid any extra expenses on fines.
- Revise and review your business plans regularly: Meet your Certified Public Accountant at least twice a year to review your business plans, financial as well as tax deposit amounts, payroll procedures and tax strategies. Just paying a few minutes for reviewing these things might save your some thousand dollars.
Your CPA must also provide you with new progressive strategies as well as ideas during these meetings.
- Auto-track your mileage: Beside all these tips you must also keep a written record of all your business, charitable and medical auto record. For this you can rely on satellite-assisted services, phone application or software program.
Remember successful business owners never take bookkeeping negatively and the above mentioned are some of the basic tips that can help a small business owner in successful bookkeeping. To make the most out of these tips consult a business development advisor.