Bookkeeping Tips 101Back to all blogs
1. Plan Ahead - Look to the Future
The first baby step is to look ahead and assess the needs of your company. Next baby step, plan for your expenses. For example, if you know that you will eventually need to replace something expensive, make sure to set aside funds every month to cover the cost. Other expenses that sneak up on you and add up quickly include office supplies, inventory, maintenance, and repairs. Putting aside a little $ here a little $ there for these expenses, can be a life saver later on. It is also important to set aside money each month to cover your annual taxes. Put these tips into practice and April 15th won’t be as stressful as you think!
2. Use Cloud Based Accounting
Going paperless and uploading and/or syncing your data and documents to the cloud allows you to access your information and accounting software online whether you’re at home, at the park, or half way around the globe from any device. One of the most popular cloud based accounting software on the market right now is Intuit’s QuickBooks. Cloud software ensures that no one can access your data unless they have login information to your online account. Because your data is not stored on a hard drive, if your laptop or computer were stolen or damaged in a natural disaster,you don’t have to worry about files being compromised
3. Separate Business and Personal
If you use your business credit card to pay for a personal expense, make sure to track that and separate it as soon as possible. It is much easier to separate expenses if you use separate accounts to pay for them, but you may accidentally use your business card for a non-company purchase. Business costs are tax deductible, so make it easier on yourself by separating them every time you make a purchase.3. Separate Business and Personal
4. Schedule Yourself Time
When it comes to bookkeeping, it might seem easier to just put it off until the end of the year. However, this is going to result in a big headache when you are trying to track down receipts and invoices that may be months old. Schedule time each week or each month to work on your books and stay as current as possible. It may be tempting to skip this every so often, but when you can stick to the schedule, it will be much easier to stay on top of the finances without feeling so stressed.5. Review Invoices
5. Review Invoices
Be sure to keep close track of your invoices, since some vendors are notorious for paying bills late. You can probably use your accounting software to run a monthly report and determine what invoices are still outstanding. This gives you the flexibility to send reminders and follow up on outstanding bills before too much time passes. It is also smart to keep a close eye on your cash flow statement, so you can avoid the dreaded insufficient funds message on a payment.6. Call in a Pro
6. Call in a Pro
It is definitely worth the investment to bring in an expert. You may rely on a financial adviser who specializes in your industry, or you might just need an accountant who can pay your taxes and payroll.
7. Track Expenses
Most experts discourage business owners from using cash to pay for any business expense, since it can be very difficult to track. When you use a credit card or debit card, you can view the transactions right away and make sure that all items are true business expenses to avoid issues with write-offs and taxes.
Accurate bookkeeping is an important part of business ownership, so it is crucial to stay on top of the expenses and invoices to prevent problems. If you have questions about bookkeeping, you can always contact us here at Candace Ebert & Company.
We are here to help.