8 Tips to Successful Bookkeeping for Your Business
If you want a successful business then you need to be successful at bookkeeping. There is almost nothing more important when it comes to long-term business success. With approximately 12 percent of all business failures relating to bad bookkeeping, the importance of bookkeeping can’t be stressed enough.
1. Use the Cloud
There is no reason not to use the cloud today for your bookkeeping needs. The cloud is safe, and you won’t have to worry about your location to have access to your books. Plus, there is a lot of automation that works well with the cloud-based bookkeeping options available today.
2. Hire a Consultant
Even if you don’t want to hire a full-time bookkeeper, hiring a consultant to help you get your accounts set up right and develop a process will save countless hours and dollars.
3. Keep Personal and Business Separate
One big mistake a lot of business owners make, especially small businesses, is intermingling personal and business money. Set up a schedule to pay yourself, and don’t touch your business account otherwise.
4. Make Plans for Big Expenses
Every year you likely have some larger expenses that you want to take care of, such as paying for software, buying new equipment, or even investing in more inventory. Set aside a little each month and you’ll never feel the pinch.
5. Save Money for Taxes
Your accounting software lets you know how much you should be setting aside to make the payment. When you get the estimate for your quarterly taxes, set that amount aside monthly instead so that you can make the payment painlessly.
6. Audit Your Invoices and Accounts Receivable Regularly
One of the problems with lack of bookkeeping skills is forgetting where the money is. It’s in your invoices and your accounts receivable. Keep a sharp eye on this and you’ll avoid problems before they start.
7. Never Use Cash
It’s very hard to keep track of cash, and a terrible idea to use it. There is too much opportunity for fraud, forgetting to book it, and losing receipts. Use a debit card or credit card so that you’ll have a duplicate record.
8. Double Check Entries Weekly
Even when you have automated booking of income and expenses with your accounting software, go into your software at least weekly to ensure that everything is working as it should.
When you get your bookkeeping taken care of, you’ll be able to better make plans for your business future. You’ll know what’s coming in, what works best, and what you need to work on when you have good books.
Here’s to your Success!
Jerry D Ross
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