There’s no doubt that bookkeeping is one of the hardest tasks that the modern entrepreneur has to face. When you’re a small business that can’t afford to hire an in-house accounting team, it falls on your shoulders to ensure that the bookkeeping system still runs smoothly.
Use these seven bookkeeping tips to make that happen without having to invest a ton of time into learning all the intricacies of solid accounting.
Personal and Business — Keep Them Separate
First things first: as a small business owner, you should never mix your personal and business financials. You should keep separate bank accounts and keep separate records for each.
The reason for this is that the personal records will muddy up the business records and vice versa. Then, you won’t be able to have a good overview of whether your business is operating healthily.
In 2020, there’s no reason to use a paper-based payroll strategy. Leverage a software like Paystubs.net to help you bring your bookkeeping into the twenty-first century with a paper-free, electronic process.
Don’t deal with bookkeeping tasks as they come up. You’ll end up taking time away from other tasks that you need to be dialed in and focused on throughout the day. Instead, schedule time at the end of every week to go through the financial records for the preceding few days. This will allow you to get through the same amount of work much faster.
Keep All Documentation
It’s vital that you keep all of your financial-related documentation. There’s no telling when an IRS audit may happen, or when an employee pay dispute will occur. Having the right documentation saved will back you up in both instances.
Mark Tax Deadlines
Few things can be as big of a setback to a small business as finding yourself on the wrong side of the IRS. Mark tax deadlines on your calendar and be extremely cognizant of them as they come up.
Automate What You Can
Bookkeeping is historically a largely manual process. But nowadays, there are tons of different software tools and Excel tricks that you can use to eliminate a significant portion of the mundane, manual processes.
Thus, whenever you decide to leverage software as we discussed above, make sure that you’re using it to its fullest potential to automate that which can be automated.
Collect on Delinquent Customers
No business will forget about their accounts payable, because your creditors won’t let you! Your debtors, on the other hand (i.e. your customers), aren’t going to be reminding you if they’re a few weeks late on payment!
Make sure that you have a system in place to monitor accounts payable and collect on delinquent customers.
Bookkeeping Tips for a Well-Running Business
There you have it — with these seven bookkeeping tips, you can keep your business’s financials running like a well-oiled machine.
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