Bookkeeping has many details steps. If you are not a detailed person, this may be struggle to handle. I have many clients that when they started their business didn’t know how to manage all the details in the bookkeeping so by the time I started working with them, we had to create systems on not only how to keep the books, but also the system of how to keep the paperwork so that I could get it into the books.
Here are 5 bookkeeping tips for small business that should help cut the surprises that may come about in your business.
- Keep your personal charges out of your business account.
- Use an accordion folder to organize your receipts. Create categories like, office supplies, office expense, Cost of Goods Sold (COGS), auto repairs, etc…
- If you invoice more often than once a month to your clients, have a folder for each client and place only their paid invoices in their folder. That way, at the end of the year, you can see all the invoices each client used.
- Schedule time to got through your receipts and sort them.
- Reconcile your accounts monthly. Better yet, updated your transactions from the bank weekly. This way, at the end of the month it won’t take you long to reconcile your accounts.
Try using Quicken or QuickBooks to manage your bookkeeping. Since you can set up downloads, this will save on entering all the data. And, if you make many charges, this can add to your work.
It is OK if you haven’t started from the beginning of your business. Just start from January so that you have a complete year of transactions.
When you get into a habit of reconciling and keeping up with your transactions, it will be a breeze to manage.
I hope these bookkeeping tips for small business get you motivated to get your business’ books in order. If you need help, please feel free to contact a professional.