7 BOOKKEEPING TIPS YOU CAN USE YEAR ROUND
August 20, 2018
Brown Mark (71 articles)
0 comments
Share

7 BOOKKEEPING TIPS YOU CAN USE YEAR ROUND

In most cases, accounting is a very tedious process. However, it is vital to every business. Lack of a suitable means to keep tight books makes the process of taxation a nightmare. Additionally, lack of proper accounting leads to a lot of things slipping through the various loops existing in the business without being noticed thus leading to extra costs in the long run. This essay will focus majorly on the bookkeeping tips that you can use all year round.

Avoid Paper Work by Acquiring an Online Cloud Account

The elementary functions prerequisite for any form of bookkeeping is mostly provided in most accounting software. Acquiring an online cloud-based accounting platform ensures that the business accounts are kept in order by avoiding the glitches that come about with the use of papers. Such platforms also expedite the access of data stored in the cloud accounts anywhere and anytime.

Plan for Major Expenses

Money to be used in major expenses should be kept aside. This includes money for repair and maintenance, office supplies and inventory among other major costs. It calls for budgeting of the business finances in advance thus helping in plummeting the anxiety that comes about with dealing with such expenses in future.

Check-In Monthly on Your Account Receivable

Having money in the business account can never be equated with having a client who owes the business some money for the goods and services provided. Staying on top of your accounts receivable is essential so that you can receive all the monthly payments that any client owes you. This can be facilitated by running receivable accounts report regularly thus helping you to stay on top of the accounts receivable and always keeping track of the payments that are past due. You can use hiveage.com to maintain your invoices online.

Set Aside Money for Taxes

Keeping a proper track of your financial records helps in payments of the taxes every year. This can be facilitated by setting aside some amount of money every month so that you can use this money to pay for the taxes at the end of the year. It is essential since you won’t have to get a lump sum of money forms the business at the end of the year to pay the taxes or taking a loan from the money lending institutions to cater for the same. Setting aside money for this endeavor always keeps you prepared.

Find a Good Adviser

Getting an expert adviser on payroll occasionally is an invaluable step to the success of the business. Such experts teach you how to fix mistakes that might arise, answer any questions and the proper way of bookkeeping. Numerous options for accountants exist out there. Therefore, you do not need to worry even if the budget is small. You can acquire an accounting major from the local college to assist you with such a task.

Keep Personal and Business Finances Separate

The tedious nature of the accounts can further be complicated by mixing the personal and the business expenses. Handling one account at a time helps you to keep track of every expense easily without being confused. Also, keeping these expenses separate can help to save a lot of time and money that could have been used to separate these expenses and keep them in order. It calls for separate bank accounts as well as separate credit cards in order for the expenses of the business and the personal expenses to be handled separately.

Avoid Cash

Keeping track of the expenses is very hard when using cash. Cash leads to loss of track when handling the write-offs due to the fact that the records of purchases do not exist mostly when one makes use of cash. Using debit and credit cards helps one to keep track of the time when the purchases were made, the amount that was spent and the geographical location where it happened. Through this, tracking of the expenses is made easier.

Additionally, cash at hand prompts one to make unnecessary purchases that reduce the amount of money that exists in the business. Such money spent unnecessarily could have been used to cater for more important expenses in the future thus boosting the business. Thus it is vital to avoid cash at hand.

Have Time to Go Over Your Books

It is always very vital to go over your finances every week to ensure that everything is running smoothly. This helps one to know the clients that have not yet settled your debts, the profitability of the business and what to expect in the future. It also helps you to trace mistakes that may exist in the records as well as any information that may have been omitted. Such an action helps the business financial records to stay organized thus making the process of taxation a lot easier.

Brown Mark

Brown Mark

Comments

No Comments Yet! You can be first to comment this post!

Write comment

Only registered users can comment.