Implementing bookkeeping best practices and tips is vital if you are an entrepreneur or a small business. Your time and energy should be focused on leading and growing the business. Whatever the specifics, pushing a pencil and keeping up with accounting logistics is not the best use of your time. We highly recommend partnering with a competent and reliable bookkeeping service that can provide the numbers and metrics to inform your business decisions.
Here are some recommended bookkeeping practices to keep your business running smoothly. Do these from the start and you will be glad you did.
- Make an efficient bookkeeping system a priority from the start.
- Be able to retrieve any necessary documents at any time – comply with document retention laws.
- Use small business accounting software tools like Quickbooks, Xero, Bill.com and Receipt Bank.
- Reconcile your bank statements and credit card statements monthly.
- Stay up-to-date with taxes – pay estimated taxes on a quarterly basis.
- Keep business and personal spending and income separate – have separate bank accounts and credit cards.
- Regularly review your financial performance – standard statements include a balance sheet and income statement.
- Set a margin aside for unexpected expenses or slow times.
- Automate payments and invoices – Receipt Bank and Bill.com are great tools for this.
- Scan your receipts and store them in the cloud to avoid costly omissions at tax time.
- Make sure customer invoices are paid in a timely manner.
- Use an accountant who is familiar with the industry and who can help you get set up correctly.
- The final suggestion is a reminder of the first suggestion: make these bookkeeping practices a priority.