SEVEN BOOKKEEPING TIPS FOR A SMALL BUSINESS Bookkeeping is probably not the most exciting part of your day, but it is a very important part of running your own business that cannot be ignored. It needs to be regularly maintained and monitored. In order to make that process a little less of a struggle, I’ve come up with some quick and easy bookkeeping tips for your small business. Organization is very helpful If you start right from the beginning with an easy-to-follow and organized system, it will be easier for you to maintain and adjust it as your business grows. Find a system that works for you, you can try a few until you find one that works for you and your new business. Use an online bookkeeping system One of the easiest and best bookkeeping systems I have found is the QuickBooks Online version. It offers easy to use, customizable accounts, and helpful financial reporting that can make managing your business as simple as logging into a website. Schedule a set time each week to enter all invoices/receipts Make sure that there is a portion of your weekly agenda designated specifically for managing your finances and updating your records. Depending on the volume of invoices and sales receipts you receive and generate, this should be easily accomplished in 30-90 minutes per week, especially if you are using an online bookkeeping system with quick en-try fields and handy drop-down toolbars. Reconcile bank statements monthly Even if you regularly review your cash flow statement and your bank statement separately, they should still be double-checked and reconciled at the end of every month. Many online programs can link to your bank accounts and make weekly matching between your records and the bank records very fast and accurate. This will help you quickly spot discrepancies if they happen to occur. Create a separate account for taxes Separating the taxes you will owe from income earned will put you in a better position when it is time to file your taxes. This way if you end up owing money, you will already have it saved up, if you ended up saving too much you can always invest it back into the business. Review your cash flow statement as often as possible The cash flow for most small businesses is constantly fluctuating, which means it needs to be regularly monitored. If you are using an online bookkeeping software program, it will be easy to generate and review your cash flow statement. This way you can change your budget on a monthly basis and make sure all of your accounts payable are covered. Review your receivables and follow-up on past due invoices It is safe to assume that the majority of your clients will pay on time, but you will always encounter a few who take longer than agreed upon. Regularly running an account receivable report will help you catch it sooner, so you can follow-up with a professional reminder. That is really all it takes to manage your finances for your small business. Following these seven simple tips will give you a great bookkeeping system for your small business. Gregg Silliman, Office Manager The Legacy Law Firm, LLC
Posted on: Tue, 23 Sep 2014 13:30:57 +0000