Organise Your Books – Bookkeeping Tips for Business Owners
Either it is a small business or an enterprise-level setup, it is the motto of every organization to get organized. They desire to remain organized and find simpler ways to finish off piles of paperwork at earliest. But when it comes to organizing the books, businesses often lack in this domain.
Organizations are always too busy growing their businesses that the bookkeeping domain usually remains unfocused. The result? Mostly by the end of the month, business owners forget about all the paid and unpaid invoices. Majority of the time it outcomes in loss of money. Especially when it comes to audit, the lost invoices costs thousands of pounds.
It is great that you have already gathered your previous year's tax documents and filed the taxes as well. Now it is time to get control of the bookkeeping area to clean the mess. Bookkeeping accounting personnel recommends completing the recording of the data at year-end. This saves from last-minute audit anxiety.
So here we are going to provide you with the top 5 tips to organize your books. Hopefully, after these tips, your stress over the predictable loss of inventory spreadsheet will calm down.
Get Familiarized With Bookkeeping Software
QuickBooks is one of the leading and most staple bookkeeping software available in the market. Due to its user-friendly layout and easy setup, every business owner loves it. It is advised to get acquainted with QuickBooks as well as other leading bookkeeping software. Trust us, with the assistance of software, soon you will realize it was not a tough job at all.
All the comprehensive and exquisite bookkeeping software allows you to perform numerous bookkeeping tasks. Either it is tracking your account receivables or payables or even making payroll or bank reconciliation queries, the software can help you in every way. You can also track down all your business activities through bookkeeping software.
Development of a System for Tracking Mileage
Entrepreneurs and business owners mostly spend their time on the vehicles. They have to travel a lot for business meetings, client visits, etc. In this stance, it is recommended to keep track of the travel expenses and mileage. With a clear data company, owners can enjoy the benefits of business deductions. Hence when you are running for business-related work, simply record a date and reason for traveling.
This way, at the end of the month you can easily enter all the details together in your bookkeeping software. You can also use your smartphone for recording the entries. Since phones are with you like every second, it will be convenient to enter the data in it. At the end of the month simply download the entries and upload them on the bookkeeping software.
Synchronization of Important Bank Details
Bookkeeping accounting experts suggest synchronizing the bank statements and credit card statements. The majority of the time, the credit card companies along with the banks can acclimatize your request and provide you with a month-end statement. This way, business owners can easily track their business activities at the end of every month.
Though it is not necessary to sync your credit card and bank statement. But if you do, it would be stress-free to match your expenses. But remember, keep your personal account and business account separate. Reconciliation of bank statements becomes a pain when you have to extricate amidst your personal expenses and business transactions.
Prefer a Reliable Business Credit Card
You can call a business credit card as a best friend to the business owner. Don’t get confused with consumer credit cards and business credit cards. The business credit cards are solely issued to business owners who can enjoy several perks such as discounts, higher credit limits, better reward programs, and access to reporting tools.
If your business credit card has a great history of on-time payments than it is going to boost your credit rating as well. When it comes to bookkeeping, a business credit card can prove its worth. Via a business credit card, you can receive statements that help in the easy determination of specific categories with quicker reconciliation. At the end of every month, your credit card statement can be provided to you in a much simpler and authentic way.
Be Prepared for Computer Failure or Theft
Being mugged is common all over the world and so is computer failure. These are unpredictable events of your life. In such a stance, bookkeeping accounting professionals suggest contacting a computer specialist. The specialist can ensure backup of your bookkeeping software.
Hence if your system fails or you are mugged, you will always have your data backup with you. Bookkeeping is an essential and easiest part of the financial process. Make sure to abide by the process to make it work like a charm.