How to Take the Boring Out of Bookkeeping
Starting a new business can mean wearing a lot of hats. In addition to conducting business operations, you are responsible for marketing, HR, data entry and even bookkeeping. Many small business owners get frustrated with keeping up with all these daily tasks, but most especially dislike bookkeeping. They hate having to stay on top of it with the constant data entry and get bored quickly. Finding the right accounting software can help soften the annoyance from a necessary task.
So, where do you start? Recently, Xero published a quick reference guide on how small business owners can get excited when it comes to bookkeeping.
Cash flow is king - If your books aren’t in order, you are in trouble. Proper bookkeeping basics are essential to your company’s financial health. Many small business owners abandon their books and only focus on their bank statements instead, while this may be easier it is not an accurate summary of its actual cash flow. It's important to remember bank statements only show the amount of money you currently have and don’t factor in outstanding debts or invoices.
Keep your data flowing - Running your business in the cloud is a more efficient way to do business. Look for a bookkeeping software that can integrate with all of your systems and that will actively gather data from your POS systems, time tracking or any other business applications your business is using. Instead of continually punching numbers, your accountant will be able to dive in and begin analyzing your financials.
Keeping your books up-to-date isn’t rocket science, and with the right small business bookkeeping software, you’ll be able to move from basic data gathering to a more thoughtful analysis of your financial status.