Bookkeeping by definition is a Systematic Recording of the company’s financial transaction. Is your box full of receipts? Are you unable to locate check payments made for you? If the answer is yes then its time for book keeping.
Accounting ends with score keeping but it begins with update. Here are some tips for easier book keeping. I hope that It could help you organize and keep your business on sound financial footing.
First, choose the right accounting system that suits your business. You can use the accrual or the cash method which ever suits your business. If your dealing with more credit transactions, the accrual method maybe more suitable.
Secondly, update your daily records. Always keep it accurate and keep them organized. It doesn’t hurt to invest on a good book keeping soft wares or record-keeping systems. Of course there is the ever useful computer where you can store this files and make this updates of your daily records easier.
Also be consistent and precise. If you buy something always get receipts. If you cancelled a check remember to update it on your records.
File all your invoices. Organize and keep them in box that is accessible. These days it is very easy to keep scanned documents via apps and the cloud.
Keep a small petty cash box for miscellaneous purchases. Of course you still have to keep the receipts for the small purchases. This way it is much easier to keep track of your expenditures in small amounts.
Finally keep your receipts, invoices, checks and bank statements organized. Keep your records re-traceable at least a year. Meaning to say it has to be in chronological order so that it is much easier to tally. Utilizing a software like QuickBooks can help ease the burden.
Just being organized is enough to ensure you are on the right track, but as your business grows, so do your needs. Working with an accounting professional can help you navigate the rocky entrepreneurial waters.