Are you the type of business owner who loves poring over spreadsheets? Your business’s books are a reflection of how well you’re doing. Most business owners mean to go over their business finances but get caught up with other priorities and never get around with it. No matter how you look at bookkeeping, it’s a task that you can’t avoid forever.
Check out these 7 tips on how to make bookkeeping a breeze.
1. Separate Business and Personal Finances
If you will co-mingle expenses and income in small business bookkeeping, it will cause you a tremendous headache for your business in the future. Open a separate business account as soon as you decide to go through with a startup business. Aside from this, it is advisable to get a separate credit card for your business so that whatever happens to your personal finances, your business account won’t be affected.
2. Utilize Automation
Encoding data in the spreadsheets and reconciling numbers are traditional ways of bookkeeping. It is the right time to embrace automation. Use cloud-based bookkeeping software and do your banking online for streamlining all the processes involved in your business. The most advantageous part of this is that you can sync it with your business bank account for accurate and updated records.
3. Consult a Professional
Seek the help of your accountant to figure out how you can utilize off-the-shelf accounting software. Since you also have the option to customize it, ask your accountant if you could benefit from it. Your accountant should be able to offer advice but also set up the software for you. Let your accountant train you on using it.
4. Regular Financial Checkups
If you will put-off bookkeeping too long, you will end up with bounced checks, delayed invoices, or figures with discrepancies. It is recommended to go over your books weekly to ensure everything is right on the track.
5. Perform Quarterly Review
Every end of each quarter, take an in-depth look at your overall records. It includes your accounting and bookkeeping records. Check your key performance ratings and whether the trend of your sales is increasing or decreasing. Subject for review your year-over-year revenues and seek the help and opinion of your accountant.
6. Keep Track of Your Business Expenses
There have been so many changes in the tax code and it is wise to ask your accountant what kind of expense you can deduct from your tax — from claiming receivables, maintaining detailed records, save time by scanning and digitizing receipts. You can also simplify expense tracking by always using a business credit card for business purchases.
7. Use a Time-Tracking Software for Your Employees
Cloud-based time tracking software allows employees to clock in and out on their smartphones, tablets or computers. But it doesn’t just save them hassles—it also makes your life easier by automatically tracking overtime, PTO, etc. You can find time tracking software designed for just about any industry. Choose one that works with your bookkeeping software, and payroll will be a snap, too.
Are you ready to make a big change in the system of handling finances? Hire a professional bookkeeper from Online Officer, and you never have to worry about your business’ financial organization anymore.