5 Vital Bookkeeping Tips to Keep Your Business Soaring
As an entrepreneur, you have a lot of financial details swimming around in your head and need to get them out before you forget. Bookkeeping isn't fun. Don't make it harder on yourself than it needs to be. Follow these simple tricks to keep your accounting flying high.
Success Begins Here.
DO NOT DIY
Many business owners feel they have to have their hands in every aspect of their business to keep cost down. However, sometimes outsourcing can help you stay focused on more pressing business needs, such as sales. To start, think about using a freelancer, not hiring, which is the most expensive solution.
Open a Separate Account
No matter how small the business, you need to have a separate checking account. Separating your accounts can help decrease the likelihood of errors. Mixing business and personal transactions can have an adverse effect come tax time.
Say a bank or credit card statement isn't enough. You need to maintain receipts, agreements, etc. that support your transactions. Keep them online, use an app to scan or take photos to route to a folder. Attach to accounting software if you can - Xero or Expensify can help.
Choose the Right Software
Choose a software program that suits the needs of your business and has all the features you require to keep your business running. Online applications such as Xero or Quickbooks allow you to access your records anywhere. Take time to explore each program, instead of settling for the first one you find. Ask an accounting professional for advice and their recommendation; they will have a better understanding of how this programs work and can advise you on what will work best for your small business.
Related to the tip above, going paperless can open up space in your office where file cabinets sit gathering dust. Your online file cabinet will have an unlimited amount of space and is available no matter where you are. An online storage program such as Google Drive or Box.com is easy to search and will allow you to keep records for as long as you wish without fear of damage.
Less Stress. More Freedom.
While it may seem simple, following these bookkeeping tips for small businesses, can help boost your chances of enjoying financial peace of mind. If your concerned that your current bookkeeper is sinking your business, consider a fresh pair of eyes and look towards outsourcing your bookkeeping needs.