Small Business Bookkeeping Tips
As a new business owner, managing your finances is a must- and so does bookkeeping. A growing business means a moving cash flow, income, and expenses and you need to keep track of all of them. This might be confusing and difficult at first.
Bookkeeping Tips for Small Business Owners
Here are five bookkeeping tips for small owners for an easier and less hassle bookkeeping experience.
- Prioritize bookkeeping.
As what I’ve mentioned before, bookkeeping is a must. As your business grows, more and more transactions will come and you need to track and monitor all of them. As much as possible, invest time in monitoring and gathering for bookkeeping and trust me, it’s worth it (especially during the tax season!). If you need to look at other aspects of your business and bookkeeping can be a great struggle, then maybe it’s the best time to hire a bookkeeper for your business.
2. Separate business and personal bank accounts
Bookkeeping means being organized- and this is one important tip to do. Once your business received a lot of transactions, separating them would be a nightmare and you’ll have a difficult time. Don’t wait for it to happen, start as early as now to separate business and personal bank accounts. It also helps you quickly determine your cash flow, since you can easily see your income and expenses.
3. Back up your financial records.
Losing financial records can be one of the worst things that could happen to small business owners. Make sure that all original copies of bank and credit statements, balance sheets, profit and loss statements, receipts and invoices are kept and provide a back-up for all of them (like scanned copies of these records). These are all for your future reference to avoid serious financial problems.
4. Separate the receivable payments from borrowed loans.
Mixing of funds deposited by clients with the borrowed funds of your business might lead to confusion and worse, might result in a serious financial crisis. To avoid this, it is advisable to download a software which has the ability to keep records of both income and borrowed funds separately for quick follow-ups. This will help you keep track of what is yours and what the business is owed.
5. Acquire an accounting software
If you think bookkeeping is too much to handle, then you can download accounting software like QuickBooks software. With this software, you can keep an eye on your financials at any time. The software has also a receipt capture functionality, receive payments, track your GST and instantly report on your finances. Aside from a less-hassle bookkeeping, this software also helps you save time and money.
“Bookkeeping can be a difficult and stressful task but keeping organized and investing time and money on it is the key. A proper and timely bookkeeping will help you a lot in your financial management and avoid you in serious problems especially when the tax season comes. Bookkeeping is definitely essential for the growth and success of your business- to start it now.”