By Tennille Carter, Atlanta Bookkeeping Solutions
Each business, no matter how big or small, must have some type of bookkeeping system in place. Keeping accurate records will allow the business owner to stay on top of company profits and losses. Businesses have been known to fail because the owner was unaware of how money was being spent, what revenue was coming in and what bills had to be paid.
When there is no accounting or bookkeeping system in place, it is very easy to overlook goals and forget important dates. Here are 7 tips that will help you get your financial records in order.
Stay Organized – Staying organized is one of the most important bookkeeping tips for small business owners. It is a good idea to keep all of your receipts in one place. Don’t worry if you don’t have time to sort them just be sure to keep them all bundled together in a plastic container, briefcase or basket. It is recommended that you store all receipts, invoices and paperwork for a minimum of five years.
Keep Your Personal and Business Expenses Separated – When storing your receipts, it is a good idea to keep at least two separate containers. One container should be for your personal expenses and another for business purchases. This will make the sorting process much easier later down the road.
Use a business credit card for business purchases – Using a different banking or payment account is a great way to make expense tracking easy for the small business owner. This also cuts down on having to store individual receipt because you can save your monthly statements.
Realistic Budget – Budgeting is half the battle in running a successful business. Creating a realistic budget will help you better manage your finances and track your marketing efforts.
Prepare for the unexpected – You should always be putting money away for a rainy day. Unexpected expenses always come with business ownership and having emergency money will make it less painful.
Automate – Using computer or cloud based bookkeeping software is a great way to simplify your bookkeeping. It also allows you to easily delegate this task to someone else so that you can focus on other projects like managing clients, creating new products or services and prospecting for new business.
Outsource – Often times, small business owners find themselves focusing on activities that don’t directly affect generating revenue. Everyone wants to be a do-it-yourselfer but is it really helping your bottom line. Think about how much time you could save if this project was delegated to a professional.
Remember that keeping good records ensures that you comply with government regulations and helps you keep control over your finances.
Atlanta Bookkeeping Solutions (ABS) provides outstanding service to our clients because of our dedication to the three underlying principles of professionalism, responsiveness and quality. For more great bookkeeping tips, subscribe to our monthly newsletter HERE.