6 Tips on How to Handle Your Small Business's Bookkeeping
Running a business is exciting, but it can be stressful at the same time. One of the most stressful aspects that you will inevitably have to deal with when running a small business is your bookkeeping processes, especially if you are not particularly well with numbers. However, keep in mind that running a small business will require you to have some bookkeeping skills as they can help revolutionise your business.
If you do not have the necessary knowledge in this area, here are six tips to help you stay on top of your bookkeeping:
1. Have a Dedicated Account for Your Business
Mixing your personal and business finances will lead to problems in the future, which is why you should open a dedicated account for your business instead. This will also mean that you need to get a separate credit card that you will use for your business purchases. Over time, taking these small steps will help make bookkeeping easier and help build an excellent credit rating for your business.
2. Streamline Your Processes
If you’re still manually entering data through spreadsheets, such practices are actually using up much of your valuable time. Instead, you can streamline your processes by using cloud-based bookkeeping software. It would also be a huge help to do your business banking online so that all your data can be accessed through the Internet. All you need to do is to sync your software with your account, and you’re all set.
3. Consult a Professional
Even if you’re only a business startup, you will need to have an accountant by your side. With the help of an expert accountant, you can figure out how you can do your bookkeeping more efficiently. Even if you might spend a small sum initially for their services, you’ll be saving more in the long run when you avoid costly mistakes.
4. Check Your Finances Regularly
Putting off bookkeeping for too long will only create more significant problems for you in the future. This is why you need to set aside time to check your finances regularly. The less time you have to spend on bookkeeping, the better it is for you and your business. In the end, there are many takes you need to pay attention to, which is why you should go over your finances and books every week.
5. Record All Your Business Expenses
Before you throw out the receipts from any purchase for your business, make sure you keep a record of them first. Remember to keep all of your receipts, regardless of the cost of the procurement. This will help you later on when it comes to filing your taxes because detailed records can save you lots of time. If it is possible, scan and digitise your receipts so that you can access them at any time from anywhere.
6. Meet Tax Deadlines
Keep in mind that going over a tax deadline incurs significant penalties for your business. For this reason, make sure to meet all your tax deadlines by syncing the IRS website’s tax calendar with your cloud-based calendar. Then, turn on your notifications so that you can plan ahead and sort out your taxes before the due date.
Small business bookkeeping can indeed be time-consuming, and this is especially possible if you put it off and have no idea what to do about it. With the tips given above, they will help you stay on top of your bookkeeping tasks. However, if you do not have the time or expertise to learn about handling these tasks, then it’s best to leave the job in the hands of an expert.
If you have recently started your business and are looking to grow and scale, we are here for you! We offer professional bookkeeping services in the Gold Coast that employ a team of chartered accountants and business advisors to help you with your bookkeeping. Get in touch with us today to see how we can help!