You’ve seen our beginner’s guide to bookkeeping. How about more secrets to how you can make bookkeeping less stressful that it appears to be? As you try Rooks and find out why partnering with the right bookkeeping firm is essential, here are a few more insider tips to ensuring financial accounting is done right and done expertly.
Easy Bookkeeping Guidelines
- Documentation In An Online World
This might sound counterintuitive when taking into consideration that most accounting and banking process is easier completed online, but documentation is that one important step you shouldn’t miss out on (because many do).
Always have your business documentation intact. Never be “okay” with misplacing one or so. Never be okay with not having a systematic strategy in compiling, arranging, and inspecting them.
Also called “Accounting Score” documents, not only are they there to enable easy monitoring, but they’ll stand as proof of your business transactions, whether to you and your staff, to an auditor, tax personnel, or your bookkeepers.
In contrast to this, you can back-up in-hand hard copies with their electronic counterparts. Filing and archiving can be done electronically or through documentation storage online.
- Cash Payment Tracking
There are a number of owners who have the tendency to forget to log “small” withdrawals and purchases. What they fail to realize is that these seemingly tiny unrecorded cash-outs will give bookkeepers a tough time come balancing. In short, it will let issues arise in the bookkeeping system itself.
All it takes is to put this to mind— declare everything, as close to real-time as possible. Don’t let it slip past you or else you might forget. It might even be unfortunately tagged as tax evasion, even if it was totally unintended!
Any expense, no matter the amount, has to be recorded so that the bookkeeping system will be able to reflect well-accounted for records.
- Sales Invoicing
Understand, be familiar with, and get in the habit of sales-invoicing. You can think of it as a receipt, only it’s for the sales of goods. Official receipts are more for services. Although, if your enterprise moves through the basis of cash without credit, this won’t apply to you.
Still, it’s something business owners should have basic knowledge of. It’s a way of strengthening customer satisfaction even more, by being on-time with sending them the “bill”.
This will hold true with your suppliers (manufacturers, if that’s where your line of business revolves around) as well. Up-to-date invoices mean that you’ll also be able to send payments to your suppliers and/ or manufactures on-time, too.
- Quarterly Reviews And Check-Ups
Schedule quarterly reviews and similar check-ups to ensure that you’re on top of your business figures and are current with all your transactions. Late invoices, bounced checks, missing logs, and the like must be given immediate attention. The longer you wait to conduct a review, the more difficult it will be for you to remember and track where and how a financial issue sprung up.
- Outsource Your Bookkeeping
One of the trends of many businesses today when it comes to financial handling is outsourcing. Among its advantages are expert services rendered, confidence in balancing-accuracy, economical, and overall, less work for you to be hassled about.