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Friday, June 9, 2017

5 Helpful Tips to Bookkeeping for Your Business

Bookkeeping is not everyone’s cup of tea. But it is a necessary part of a business. It is a vital part of your business and should not be neglected or put off until the end of financial year.

If you are a small business owner, you might have had to take on multiple roles while starting your business. The tendency for small business owners, especially at the beginning is to take on multiple roles. From owner to administrative personnel to marketer and to bookkeeper, it is sometimes inevitable that you have to multitask.

If you are looking for ways to make your bookkeeping more manageable and efficient, here are some tips you may incorporate into your practice.

1. Reserve a specific day and time for bookkeeping – especially at the start of building your business, regulating cash flow is important in order not to incur unnecessary expenses. Make sure you dedicate a specific day and time just look over your records. Do this each week so that it would not take too much of your time.

2. Keep track of all your invoices and expenses – make sure you are up to date with your invoices in order to avoid unpaid and late bills. If you miss a payment, you might need to pay interest or pay a penalty which will really hurt the cash flow of your business. To help you with tax write-offs, keep track of all your expenses, from the simple things like pen and paper, or business trips and lunches. You can use a small portion of your day planner or download an app on your phone to do this.

3. Sort and file all receipts – it might be a laborious task, but think of it as saving yourself from a headache in the future. Take note that ink may fade over time and you might need to scan your receipts to ensure that you will be able to file them. Make sure you collate them according to date. This will come in handy when you do your taxes.

4. Switch from traditional bookkeeping to cloud bookkeeping – more and more businesses are switching from traditional to cloud computing. It is after all more cost-effective compared to traditional which needs a dedicated hard drive and would need a lot of money in order to update. Cloud computing also allows your team (if you have one) to access the data from anywhere around the world as long as there is an Internet connection. Your data is also automatically backed up in the cloud system, and you can be sure of its security as they make use of security measures that banks use.

5. Get the help of a professional – as your business begins to grow, you may need the services of a great bookkeeper. Doing so will help you focus on other aspects of your business while knowing that your business is in good hands. Irena’s services aim to assist small businesses in order owners to not only have more time for the business but for personal time as well. Call them today for free consultation and find out how they can help your business.

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