Have you recently decided to start a small business? Are you finding it difficult initially to manage a lot of work? You have many responsibilities as a small business owner or a start-up to take your business to the next level. You need to think about funding, marketing, hiring new employees, and more. Moreover, you would like to save time while efficiently managing your business operations. Saving time will ensure you manage your business effectively without a compromise on quality. One of the responsibilities you have is to manage your books. You may outsource bookkeeping services for a small business from a prestigious accounting firm, such as GTA Accounting.
You can save valuable time managing your books effectively and run your business smoothly in various ways. We shall discuss those ways with you in this post to help you save time and money to manage bookkeeping.
How to Save Time & Manage Your Small Business Bookkeeping
Every business wants to cut down on time and money it spends on any business activity. Small business owners can also save their time and money on bookkeeping if they manage their books efficiently. Besides, managing the books of accounts is a stressful & boring task for small business owners. Nonetheless, going through the whole bookkeeping process systematically and thoroughly can aid them in successfully managing their books. Consequently, they can save time, money, and a lot of stress. Here are six ways that can help small business owners effectively manage their books of accounts:
1. Going Paperless: Paperless bookkeeping can save valuable time for business owners so that they can meticulously focus on important business tasks. Besides, storing tax documents for 5 or more years is a nuisance. Business owners may also purchase a fireproof safe to store their important personal documents like a passport, life insurance, etc. They can also have a regular backup of their bookkeeping software and tax returns saved on a USB flash drive. Business owners may also consider off-site physical storage or online data storage for extra protection of the records and files.
2. Use Your Credit or Debit Card Reminiscently: You should make sure you use your debit card or credit card honestly. If you use cash, you can lose track of potential write-offs. Nonetheless, you can track your expenses if you keep a note of your purpose of withdrawal. Therefore, when you pull the money out of an ATM, note your purpose of withdrawal on the receipt.
3. Keep Your Business and Personal Accounts Separate: When you start a business, you can make the mistake of mixing your personal account with a business account. You should avoid it and ensure you don’t mix your personal and business accounts. Instead, keep the personal account separate from a business account alongside your credit cards. It will make it easier for you to effectively manage your books and successfully manage your small business. Also, don’t overlook hiring bookkeeping services for a small business from an accounting firm if your budget allows it.
4. Don’t Mix Personal Finances with Business Finances: You shouldn’t mix business and personal finances, identical to business & personal accounts. Keeping your finances separate will aid you in accurately recording transactions made for personal and business use. It will also help you see your business entity as a separate entity from the owner.
5. Keep Receipts: Don’t throw receipts in the trash if you are running a small business. Receipts are mandatory to serve as proof to authenticate transactions on the company’s books. Please remember that the authorities can consider certain entries invalid if your books lack proof. Receipts also aid in clearing up the mistake made during the bookkeeping process.
6. Evade Mistakes: Bookkeeping works identical to dominos stacked in a line. The slightest error in your books can cause your entire bookkeeping to end up in a large net of errors. One of the mistakes that you can make while managing your books or using accounting software is Math mistakes. Furthermore, if you make errors while managing your books, they will occasionally crop up. Nonetheless, regularly checking your books for accuracy and avoiding Math mistakes will help you maintain them effectively.
Managing books of accounts is a hectic task for small business owners, in particular. Outsourcing bookkeeping services for a small business from an accounting firm is one solution for small businesses. Further, small business owners can save their precious time and manage their books efficiently while sticking to the following:
1. Small business owners should go paperless to manage their books of accounts.
2. They should use their credit or debit cards conscientiously.
3. Additionally, small business owners should have separate personal and business accounts.
4. Plus, they shouldn’t mix personal finances with business finances.
5. They should keep their receipts with them.
Lastly, they shouldn’t make Math mistakes while managing their books or using bookkeeping software.