KNOWLEDGE HUB: 5 Bookkeeping Tips for Business
Money is an important resource for any business. It allows you to purchase supplies, pay your employees and implement marketing strategies. In short, money is vital to your business operations. This is the reason why as a business owner, you should keep your finance bookkeeping up to date. When you have an updated bookkeeping record, you’ll be able to monitor your business’s financial health accurately. This information can help you come up with a sound decision which will pave the way towards your success. But do you have any idea on how to keep your finance bookkeeping up to date?
1. Separate business and personal expenses:
Many business owners, especially those who are still new in the business arena, would prefer to have one bank account for both their business and personal expenses. In their defence, the business still doesn’t earn that much so taking mental notes of which account is earning or losing can be easy. Don’t commit this mistake. As early as possible, it’s best that you have separate bank accounts for your business and personal expenses. When you have a bank account solely dedicated to your business, you’ll spend lesser time in tallying deductible expenses. Abruptly separating these expenses might be challenging but this simple bookkeeping practice can save you time, money and energy down the road.
2. Accurately record deposits
You should never procrastinate when recording your deposits. If your business deposited money today, you should record the transaction today. Putting this task the next day or after two days can lead to inaccurate records or the transaction not being recorded at all.
3. Don’t be afraid to hire a professional
Fortunately, you don’t have to be burdened with the responsibility of keeping your finance bookkeeping up to date. Today, there are companies such as Balancing Books Bookkeeping which offer professional services for your bookkeeping needs. Hiring bookkeepers who can teach you the basics of financial bookkeeping is a great start. And you don’t have to worry about the cost because you can always have the option to hire them temporarily.
4. Get an accounting software suitable for your business:
Aside from hiring professionals, let technology help you in your bookkeeping dilemma. There are now many accounting software types that you can use for your business. When choosing one, make sure the software fits your business operations and type of expenses. You don’t want to compromise any of these just so you can fully utilize the features of the software.
Getting an accounting software reduces the risk of committing bookkeeping errors since everything is automated. Additionally, an accounting software can give access to the right people which means that everyone will be on the same page when dealing with the business’ finances. If you’re eyeing to use an accounting software anytime soon, never forget to add a few security measures. Your financial bookkeeping records should be confidential.
5. Allocate time each week and devote to bookkeeping:
There’s nothing more frustrating than tallying your expenses at the end of the year and realize that there are errors in the records. When this happens, you’ll end up digging through various records which demands your time and effort. If you don’t want to take on a year’s worth of work in one day, schedule a day in a week for bookkeeping. Regularly checking your bookkeeping records ensures that you’ll be able to keep track of how your business is going, determine problems as early as possible and provide solutions so these problems won’t worsen. As they say, prevention is always better than cure.
Regardless of the size, niche or offerings of your business, you should have finance bookkeeping records which are updated. This should be one of the first things you should establish especially when you’re just starting your business. Once you have these set, your business will have higher chances of thriving and succeeding in the long run. You can keep track of the money that’s going in and out of your business, and where this resource is spent. As a result, you can come up with better decisions for your business. Exhaust time and effort to adapt to strategies in keeping your finance bookkeeping records updated, and for sure, you’ll be able to reap what you sow in the future!