There are some easy steps to take in cutting the work-load and total cost down for bookkeeping.
Separate business and personal finances.
Co-mingling expenses and income is a common mistake in small business bookkeeping—and one that will cause huge headaches for your business in the future. Open a business bank account as soon as you decide to go through with your startup, and get a separate business credit card. This not only separates your accounts, but also helps your business build its own credit rating.
Perform regular financial checkups.
If you put off bookkeeping too long, you end up with bounced checks, overdue invoices or figures that don’t add up. Go over your books weekly to make sure everything is ship-shape.
Do a quarterly review.
At the end of each quarter, take an in-depth look at your bookkeeping and accounting records. Look for trends, such as growing or declining sales, year-over-year revenues, or an increase in late-paying customers. Talk to your accountant: He or she can help you look at the big picture so you’re better prepared for future capital needs such as buying new equipment or moving to a bigger location.
Keep records of business expenses.
So many changes to the tax code were made for 2019 that you should consult your accountant for guidance on what kinds of expenses you can deduct next year. For anything you think you’ll be claiming, maintain detailed records; save time by scanning and digitizing receipts. You can also simplify expense tracking by always using a business credit card for business purchases.
Monitor your employees’ hours with time tracking software.
Cloud-based time tracking software allows employees to clock in and out on their smartphones, tablets or computers. But it doesn’t just save them hassles—it also makes your life easier by automatically tracking overtime, PTO, etc. You can find time tracking software designed for just about any industry. Choose one that works with your bookkeeping software, and payroll will be a snap, too.
Keep a close eye on accounts receivable.
When customers don’t pay on time, your business’s cash flow can dry up fast. Pay attention to when your receivables are due and contact late-paying customers right away to nudge them along. Even if a customer is having financial problems, you may be able to set up a payment plan to get at least some of what you’re owed.
Stay on top of tax deadlines.
To avoid getting caught short, plan ahead and set aside money for any anticipated tax bills. Pay on time so you don’t face fines. The IRS website’s tax calander for businesses can sync with your own cloud-based calendar so you never miss a deadline; it can even send you reminders a week or two before a payment is due.
Hire a professional.
Attempting to do all of the bookkeeping can be a huge mistake. With just 1 wrong entry, you can throw off all your numbers and possibly offset the profit/loss statement by thousands of dollars. Many times, business owners spend hundreds of hours doing the bookkeeping themselves, and still everything needs to be completely redone because the numbers are off at the end result. Contact a professional near you. You may be surprised how affordable it can be to hire a professional bookkeeper. For example: James Ridout
, offers Bookkeeping in Wilton manors, Fort Lauderdale, or anywhere and he can assist you for just a small fee each month.