Manage Your Small Business Bookkeeping Effortlessly
In order for your small business to succeed, you need to keep a close watch on your income and expenses. You need to keep careful financial records so you can see trends and plan ahead.
Here are some tips for managing your financial records—whether you do your bookkeeping in-house or use an outsourced bookkeeping company.
Keep Business and Personal Finances Separate
Even if you are just putting out your shingle, it is critical that you keep your money and your business’s money apart. Open a business bank account and credit card to ensure you don’t mix personal and business expenses. This makes it easier to track your business transactions and keep accurate records.
Use Accounting Software
QuickBooks, Xero and FreshBooks are all good systems for streamlining your financial recordkeeping for your business. Here at BookWerksTM, one of the top bookkeeping services in Cincinnati, we will utilize the software that best fits the client’s needs.
Using secure, cloud-based accounting software like we do, data entry is automated (reducing the chance of errors, reports are generated quickly, and you stay organized. Your data and reports are accessible anywhere, any time.
Record Every Transaction when it Happens, No Matter how Small
If you get in the habit of recording every sale, expense, purchase or loan immediately, your records will be accurate and preparing tax documents will be simple.
When you choose an affordable outsourced bookkeeping partner like BookWerksTM, your transactions are automatically recorded without your having to do anything.
Categorize Your Income and Expenses
If you track expenses in categories, such as office supplies, rent, utilities, marketing and salaries, it will be easier to see where your money is going, and where you need to adapt.
A clear and organized Chart of Accounts in your accounting software is a great tool for categorizing. We can help you set this up.
Keep Receipts and Invoices
Save everything! Digitize paper records if you can, and store them securely for easy reference, and in the off chance you get audited. Again, if you use a professional bookkeeping firm, this happens automatically.
Reconcile Your Bank and Credit Card Statements Monthly
This is one of the services we provide for our small business clients. You always want to reconcile as soon as you get your bank/credit card statements to make sure there are no discrepancies between your records and the bank’s.
If you find any errors, address them immediately with your financial institution.
Set Up an Accounts Receivable System
If you give customers credit, you will need a system for tracking outstanding invoices, sending reminders and following up on late payments.
Back Up Your Data
Protect yourself against data loss due to technical glitches or data corruption with a cloud-based system or external hard drive. BookWerksTM clients never have to worry about losing data; everything is backed up in the cloud automatically.
Review Your Financial Reports Regularly
Take time to review your Profit and Loss Statement, Balance Sheet and Cash Flow statements at least monthly. If your software does not easily generate these reports, we can help.
Stay Organized to Simplify Paying Taxes
If you keep your records organized day by day, it is simple to turn over your data to your accountant at tax time. With a professional bookkeeping firm helping, you will always be ready with the necessary documents.
Get Help when You Need It
As their businesses grow, most owners find it necessary to outsource non-revenue-generating tasks such as payroll and bookkeeping. Our clients are glad they took their financial recordkeeping outside. It saves time and money, lets them focus on their business, and provides peace of mind. If you’re interested in learning more about our outsourced bookkeeping services, set up a FREE, no obligation consultation.