Tips for book keeping:
Many businesses and entrepreneurs are successful in managing their products, customers and employees. But some of them are having a difficult time in managing their book keeping. But what is really Book Keeping?
Book Keeping is the recording of financial transactions-from receipts, contracts and purchases of a business. It is also important that the recording of this transactions are accurate and up to date. Regardless of how small and large your business is, is very essential to keep your business running.
Here are five ways to manage book keeping.
Check the balance, record daily sales and cash receipts every day to avoid loss and confusion during the end of financial year. Regular reviewing of your financial transactions is a great way to know how your business is going and monitoring cash flow.
2. Separate bank account for business transactions
Your personal and business bank accounts should be separate because it can be confusing when you organize all the business income and expenses in just one account. Imagine if it’s also mixed up with your personal expenses, it is definitely a nightmare. It also helps you to simplify in filing your taxes and appear more professional.
3. Accounting software
Most businesses use an accounting software for an accurate and timely book keeping. You can try Cloud software, which helps you to back up your financial files and you can access it anytime and anywhere. You can contact a business consultant or an expert than can help you choose before buying.
4. Keep your receipts
The following are the kinds of receipts that you need to keep, and also take note that the ATO requires you to keep your financial records for a minimum of five years.
- Goods, services and other business acquisitions purchased
- Sales or services taken by your business
- Profit and loss statement
- Balance Sheet
- Tax Return Information
- Payments to employees and other organizations
- Stocktakes at the end of financial year
- Other records that have a financial value to your business
You can keep this receipts by maintaining an organized filing system or scanning all of these for a softcopy.
5. Hire a book keeper
For those with a large business, managing book keeping all by yourself will be very difficult so it is best if you will hire someone that could assist you in book keeping. Hiring a book keeper will help you focus on expanding your business while keeping your financial records accurate and up to date. You can hire someone who has taken up a financial business course or someone with a book keeping experience, particularly in large companies.
Book keeping is a vital part of business and therefore must not be rendered unnecessary. Monitoring and arranging financial records regularly is very important instead of doing it by the end of financial year. As your business grows, book keeping will be very important in order for your business to run smoothly.