5 Useful Bookkeeping Tips to Use Year Round
Bookkeeping can be strenuous for any business, but if your small business doesn’t keep tight books, it can make your financials could be a nightmare. Lots of things can slip through the cracks and end up costing your company money. However, with a clear-cut process and some basic bookkeeping tips, you'll get your financials up to par.
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Save trees - Focus on Cloud-Based Accounting With cloud-based accounting systems, you can access your business information anywhere. If you find yourself on the beach and need to know if an invoice got paid, you can. Online accounting systems are always connected allowing you to view your financials in real-time. Another plus, upfront business costs are reduced -no longer are you at the mercy of an IT person. Cloud-Based systems install quickly and are backed up automatically. Updates are free and instantly available and managed by the cloud service manager. We highly recommend Xero or Quickbooks for small business bookkeeping.
Keep Personal Expenses Separate It's easy to think you earned the funds so that you can spend them. And you can, but know its best to keep personal accounts separate from business accounts. It’s a lot easier to keep accurate records if your only dealing with one account at a time, so stay organized. Be sure to set yourself up in payroll so you can spend your hard-earned money.
Keep Daily Records Remember if you do not keep accurate daily records, you will have no idea of your company’s financial condition. While it sounds simple, may small business owners fail to comply with this simple bookkeeping rule. There are many ways to keep track of expenses, but whatever method you choose doesn’t matter as long as you choose one and stick with it. Once you have a system in place, accurate record keeping will become only a fraction of your day.
Plastic is King Keeping track of your spending can be hard with using cash. You also lose track of write-offs and deductions because there is no record of your purchase. Using a debit or credit card allow you to keep track of the amount spent, where it was paid and the total charge. Using plastic makes tracking your expenses so much easier.
Find a Partner Having a reliable partner on your side can be invaluable when it comes to maintaining your records. They can show you how to handle your books properly, answer questions and fix mistakes that might have been previously overlooked. Consider outsourcing your bookkeeping and payroll tasks to reduce overhead.
Less Stress. More Freedom.
By utilizing these simple bookkeeping tips, you will be able to spend less time on your financials and more time on growing your business. If you need assistance, you can always contact our team to learn more.