Bookkeeping can be a tough job for any business owner, when you really want to be spending time on your core business. For some business owners accounting can seem like a bit of a minefield. Looking for some ways to make your accounting that bit easier?
10 Bookkeeping tips for small business
Here are 10 bookkeeping tips to help you save money & manage your finances more efficiently.
- Monitor Your Invoices
Make sure you’re actually getting paid! It might seem crazy but many small businesses fail to realize they haven’t been paid by clients. Keep on top of your accounts receivable and check for late or unpaid invoices, if you don’t you could really be hurting your business cash flow.
- Plan for Large Expenses
Plan for large purchases in advance, look at when your business is in the best position to make these purchases and plan your calendar accordingly. Avoid relying on credit & keep money within the business for when an unexpected payment comes along.
- Set Time to organize Your Finances
Dedicating a small amount of time to your finances each week can help you make better financial decisions & make things a whole lot easier when it comes to paying your taxes.
- Track Expenses With a Credit Card
Using a credit card for most business transactions can be a simple way of keeping track of your expenses, especially compared to paying with cash. Use your credit card statement to itemize your expenses at the end of each month.
- Choose The Appropriate Tax Status
Seek advice from a professional to decide on the correct tax status for your business, you could be paying more tax than you need to!
- Always Pay on Time
Keep an eye on your outgoing payments, if you miss a payment you could damage your credit rating which could affect your ability to secure a loan if you ever need one.
- Use Bookkeeping software
Accounting software can save your business a significant amount of time & money when it comes to paying your taxes. It will put you in a stronger position when it comes to understanding your finances & allow you to spend more time on your core business, instead of your accounts.
- Find a Good Accountant
It might seem cheaper to do it yourself but seeking the advice from a professional accountant will almost always save you more money. They can point out ways that you could improve your bookkeeping, could reduce your tax bill & improve your finances.
- Separate your business & personal finances
Always keep your personal & business finances separate, it is a lot more time efficient to keep accurate records this way.
- Learn About Bookkeeping
Spending a little time each week to learn about some basic bookkeeping practices could help you to implement some highly beneficial strategies. Consider taking an online course for bookkeeping.
Follow these bookkeeping tips and you will have more time to focus on growing your core business and your business could be in a much better financial position.