Bookkeeping Tips That Will Save Time and Money
Some small business owners view bookkeeping as a task that will take them away from their business and become a burden. Others are made nervous by the thought of incorrectly keeping track of their bookkeeping and being greeted by the IRS. Being a successful business owner doesn’t mean you have to be skilled in bookkeeping, or be eager to dig into your pile of receipts. What being a successful business owner does mean, is not ignoring your bookkeeping responsibilities. It’s okay to feel intimidated by the tasks ahead, but there are bookkeeping practices and procedures that can help you stay on top of the paperwork and save you time, money, and stress.
Set bookkeeping procedures from the start.
You should do your best to start your business on the right foot. That means turning bookkeeping into a regular habit just like you would anything else. How often you check your books is up to you, but try setting up a time for it once a month, at the very least.
Learn how to talk the talk.
Whenever you talk to your bookkeeper, the terms used may not even seem to be English. These terms can be confusing to many individuals, but are important to know. We aren’t saying you need to know the ins and outs of bookkeeping, but becoming familiar with basics can be a huge help. By taking time to familiarize yourself with the language, you will be able to accurately communicate with your bookkeeper and properly understand the terminology. If you don’t know where to start, go ahead and search for the definitions of common bookkeeping terms such as general ledger, accounts receivable, assets, liability, equity, revenue, and depreciation.
Keep your personal accounts and business accounts separate.
Bookkeeping will be much easier if you keep these two separate. Mixing the two can create a big financial mess that needs sorting out every quarter. Keeping personal and business bank accounts and credit cards different will not only make bookkeeping simpler, but will keep the professional image of your business intact.
Use the least amount of cash as possible.
If you use a debit or credit card, the transactions are automatically recorded. If you use cash it is easy to lose track of what it was used for, meaning you could miss out on possible write-offs. If you do decide to withdraw money, make a detailed note on the back of the receipt about what you used it for.
Scan your paperwork.
You should store tax documents for at least six years, and that can be a hassle. Having an electronic backup of all your most important documents can be a life saver. You can even scan and keep documents of all your receipts and business cards. If you have an electronic file you can give your bookkeeper, it will make their job easier thus saving you more money.
Hire a bookkeeping expert.
If you really wanted to, you could most likely figure out any bookkeeping problems you have. But, that would take time, and you have business to run. Instead of scrambling and running the possibility of making a big financial mistake, you are better off hiring an expert. Not only can a bookkeeper save you time, but they can also calm your nerves and advise you if the IRS ever comes and knocks on your door.
Bookkeeping is an area where you can’t play games. If you do, you risk losing thousands of dollars. This is why hiring a bookkeeper is the best choice, and can actually end up saving you money. Professional advice is invaluable, which is why every business owner should consider hiring a bookkeeping service.
Bookkeeping Help in Wilmington NC
BOSS is a growing firm of local business advisers who are committed to providing responsive service, strategic thinking, and competitive pricing to our clients. If you’d like help or to learn more about running a small business in Wilmington, NC give us a call at (910) 338-1198, stop by our new office located at 3901 Oleander Drive, Suite G in Wilmington, or click here to fill out our online contact form. We look forward to hearing from you!