7 Tips to Better Bookkeeping for Your Business
Good bookkeeping habits can help you and your business grow.
1. Get a professional to prepare your tax returns. A good accountant will do more than file your returns. They can spot holes in your bookkeeping and advise you on ways to improve your business.
2. Don’t step back and become uninvolved just because you have a bookkeeper and accountant. Make sure you review their work. Do the reports that they are issuing make sense to you and your business?
3. Make sure you have the right bookkeeping software. Look for a system that matches your business needs and has an ease of use to you and your staff.
4. Document your bookkeeping processes. Write down the procedures your bookkeeper should follow. Make sure the job is done your way – a way that works best for you and your business.
5. Be sure to keep all of your receipts for your cash expenses. Your credit card purchases can always be accounted for but if you lose a receipt for something you paid cash for the expense can be overlooked. You should have a procedure for saving these receipts- notebooks to record them, folders to save them in or even a new app that helps you take pictures of them and stores them for future reference! Try www.igeeksblog.com which list a few apps.
6. Keep track of your receivables. Make sure you are getting paid for your invoices. Keep either a detailed log or use a bookkeeping software that helps you keep track of invoices, payments and overdue amounts.
7. Work as a team with your accountant. They can be a key to guiding your business on the right path and spotting potential problems before they arise. A good accountant can help you bring your business to the next level.
Good practices bring good results!
By Chris Murphy, Senior Accounting Manager