This month we wanted to share with you 6 top tips and tricks that will help you with your bookkeeping. This list is not an exhaustive list but these tips can have a massive impact on your business if handled and implemented correctly.
Separate Your Business and Personal Banking
We get it. It’s easy to just pull out the one card for all expenses – your business expenses and your personal expenses. But this all gets really messy when it comes time to balance your books at the end of the year or end of the quarter. Separate accounts, even if you are taking regular drawings from your business account, mean that you will never miss a legitimate expense at tax time. It will also save significant time for your bookkeeper so they can concentrate on other, more valuable tasks.
Make Sure You Have The Right Accounting Software
It is really worth your time to make sure you have the right accounting software. There are a number of software brands available and we can help you decide the best one for your business. The most important factors though are that it integrate with your bank account and that it be cloud based.
Keep Track of All Your Invoices and Documents
You really need to be able to prove the claims you make in your tax return by keeping all your invoices on file. It can be as simple as keeping them in a shoebox but we recommend scanning and storing them in the cloud.
Understand Your Numbers
You may outsource the role of bookkeeping in your business. And, let’s face it, who really wants to do data entry when you could be making more money in your business? But it is important to know that your bookkeeping software can produce some invaluable reports and it’s important that you take the time to understand them as they can give you great insights into the current performance of your business.
Make Sure You Get Paid On Time
Cashflow is vital for business success, and bad cash flow is often what destroys otherwise great businesses. You need to make sure that you send out your invoices in a timely manner (you can’t get paid without sending them) and you need to make sure that those invoices then get paid. A good bookkeeper can help you with this.
Get A Bookkeeper
Many people do their own bookkeeping, and this is okay, but it would be remiss of us not to share this tip. The right bookkeeper can help guide your business forward and help you flag issues before they arise. It also saves you a significant amount of time by allowing you to focus on the important things in your business – i.e. what it is that you do best.
These 6 tips can help you do your bookkeeping better, whilst scaling and growing your business. If you’d like to discuss with us how our bookkeeping services can help you grow your business, please don’t hesitate to get in touch for a chat today.