Bookkeeping, the longer you put off, the more laborious the task becomes. Many business owners delay bookkeeping and focus their time on other business activities. When it comes to small businesses, it is not as difficult as it seems.
One thing to consider before bookkeeping is to ensure you have all the tools of the trade like the files and a cash book. For small businesses using a bookkeeping software will be beneficial. What’s even better is a virtual assistant bookkeeping expert who can help you get the job done on time and with high quality!
Here’s a quick guide to bookkeeping for small businesses that will help manage books better:
File Business Paperwork
The most important aspect while doing your bookkeeping is to have all business paperwork filed so that you can keep track and have evidence to support any information in the cash book. Compare your monthly bank statements to invoices (sent and received) so that you can identify potential errors, missing paperwork or payments. Always store invoices in chronological order at the end of the filing system for every month. Remember to store any loose receipts in a plastic pocket as well because any information without a receipt will be disallowed against your profits. When filing is done correctly, any business, big or small can save a lot.
Cash Book Management
Whatever payment that comes out of the accounts, from wages to office supplies must be made a note of in the cash book. The cash book is the most vital piece of evidence that can track your payments that go in and out of your business. Remember, only if your cash book is kept up to date it will be useful for the future. As much as tracking the payments it is equally important to keep an eye on the income in order to maintain the balance.
Reconcile Bank Statements
All small businesses must regularly check their bank statements not just to combat the risk of fraud or mistake by the bank, but to gain a better understanding of where your money is being spent. This way, you will naturally improve control on credit and cash flow.
Never Mix Business Expenses With Personal Expenses
It is quite obvious and very important not to mix business with pleasure. The line between business transactions and personal expenditure is a very fine one which should never be mixed. Unless a purchase is a legitimate business expense, you cannot spend your company’s money on your own purchases.
The more you postpone doing your accounts, the longer and more difficult the task will be. In your everyday schedule, set apart some time without any distractions to update your books. If you are not able to, outsourcing your bookkeeping to a renowned company like Infognana Solutions will make things easier for you. We also offer virtual assistant services for accounting and bookkeeping to help business owners manage their books.
For more information on our services, get in touch with one of our professionals or visit our website at: Bookkeeping & Accounting Services | Bookkeeping & Accounting Company