Bookkeeping is one of the most tedious yet important operations that every business must conduct. Through bookkeeping, the financial aspect of a business is taken care of by recording all transactions accurately. The more organized a bookkeeping system is, the greater the chance for success. Start-up business owners often perform bookkeeping manually on their own, while others rely on bookkeeping software. If you are planning to start a small business, do not forget to invest time in learning the intricacy of bookkeeping. Here are some basic guidelines that can help you understand bookkeeping as a whole.
Create a ledger
Whether you have to create a manual or a virtual one, the existence of a ledger can build the pillars for the stability of your business. Think of the ledger as the ?diary? of your business, except that you are inputting mostly numbers instead of letters. Every transaction that goes in and out of your business must be recorded in the ledger to speed up the accounting process. Microsoft Excel is a great starter program that you can use.
Keep all receipts
Now that you are already a business owner, it is imperative that you keep receipts for accounting and taxation. You can keep the receipts in small envelopes if you want to save on overhead. To make sure that receipt documentation is intact, you can scan your receipts and keep the files in your hard drive.
Open a corporate banking account
Never ever mix your personal account with your business account. Having combined accounts is questionable in business ethics and will reflect irresponsibility. If you mix a personal and a business account, recording transactions will become harder, pushing your business to spend more hours keeping everything organized.
Open your business mail
Supposing you have a separate business email (as a business owner, you must have one), you need to open it frequently. You may have dozens of client requests on the way, or some concerns may need your attention. If you pile up your messages, you will fail to see important messages right away. This will cause delays in your business and anxiety on your part.
Reach your billing deadlines professionally
A business will always need the services of other businesses and vendors. To keep your payments organized, you must create a monthly billing cycle. This can help you fulfill your billing obligations easily. If you cannot pay a vendor on time, do not run away. You may re-negotiate new billing terms with the vendor, rather than sacrifice your credibility.
Use templates for standardization
Templates will make your business forms official and secured. Transaction templates can be downloaded online, or you can buy them from local stores. Some online bookkeeping applications have templates ready to be used.
Prefer bank transfers and credit cards
Transferring payments through banks and credit cards is more secure compared to cheques. Cheques, given their nature, are prone to human mistakes and can cause delay to your payment methods. Bank and credit card payments are automated, so these methods will help you save more time.
Keep track of bank records and statements
Remember that everything must be tallied perfectly; everything that enters and leaves your bank account must be recorded. If not, there will be discrepancies in the accounting.
Cloud?s the way
Nothing beats doing your accounting process on the cloud. Cloud application subscriptions are famous nowadays because of their convenience. Doing your business on the cloud increases the security of your files and makes them accessible to other clients and colleagues. Cloud subscriptions depend on the file storage that your business needs.
Go for outsourced accounting
As a business owner, most of your time will be spent on improving your product, meeting people, and creating new strategies. The accounting part of your business should be outsourced in order to save your time. Though outsourced accounting may increase your overhead, this will grant you precious time to focus on other important business initiatives.
By following these bookkeeping basics, your business is set for growth in the near future. You may start small in your accounting set-up, but remember to expand whenever possible.
?
Did you like this post? Share it to your friends:
You can skip to the end and leave a response. Pinging is currently not allowed.
earthquake san francisco donald payne elizabeth berkley lenny dykstra mlb 12 the show sabu franchise tag
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন