Six Tips To Getting The Most Out Of Your Bookkeeping
As a business owner, you’re responsible for staying on top of your business’s books. Your business’s books are a scorecard of how well you’re doing, but if you’re not used to doing your own bookkeeping, it may be a stressful process for you. No matter how you feel about bookkeeping, it’s one of those tasks no business owner can avoid forever. If you have up-to-date and accurate accounting records, your company will be on the road to success. But if you fail to focus on your accounting tasks, your business can quickly sink before it has the chance to grow.
As experts in the field, we at Infinite Accounting Solutions have written down six tips for getting the most out of your bookkeeping.
#1 Hire a professional
Working with Infinite Accounting Solutions will ensure your books are up to the highest standard and are accurate. Bad or inaccurate bookkeeping can be detrimental to a business, and we want you to succeed. We use some of the latest bookkeeping software and will take advantage of the software that best fits your needs and budget. We communicate effectively to ensure you don’t miss those big deadlines and that you understand where your business is at from a financial standpoint.
#2 Keep business and personal accounts separate
Keeping a bank or credit card exclusively for business will make it easier not only for your bookkeeper to enter the transactions into your bookkeeping software but for you to have a good idea of your business’ income and expenses and an easy way to quickly check the overall performance of the business. Opening a business account is also said to be a good way for your business to build credit!
#3 Keep records of business expenses
Business expenses are important to document, not only for a detailed outlook on your business’ profit and loss, but you may end up being able to deduct some of these expenses come tax time! And who doesn’t want that? Keeping a record of business expenses involves inputting the expense into your bookkeeping software and holding onto the receipts. This can be filing them in a cabinet, using receipt capture with your cell phone, and/or scanning them and saving them onto your software and/or computer. This point of record-keeping also goes back to keeping business and personal accounts separate. It will be way easier to find the expense on your statement when you know exactly where the money came from.
#4 Choose the right software for your business
There are many different accounting software to help with your bookkeeping tasks. Choosing the right software and/or subscription level is important when trying to find the best fit for your specific business and industry.
Here at Infinite Accounting Solutions, we do the work for you after getting to know your business and will recommend the software we think will suit your business best. Accounting software will make any task much easier with its simple-to-understand data entry tools and automation. There may even be some third-party apps you would like to integrate into your software that can be very helpful in streamlining your tasks. Knowing all of the software available to you and what each one can accomplish will help you choose which one will work best. After years of setting up clients with industry-specific software, we would love to help you find that perfect fit.
#5 Link bank and credit accounts to your software
Some software, such as QuickBooks Online, will let you link your bank and credit accounts straight to the software. This brings in all the current transactions regularly. This will be a simple way of keeping your books up to date and very easily inputting and categorizing all deposits and expenses into your accounting software. You can also set up some regular transactions to be automatically categorized through this feature, saving your bookkeeper even more time!
#6 Regularly check on your finances
When your books are up to date, you can easily log onto your accounting software and check on some important reports that will help you with financial decisions in your business. Some important reports to keep an eye on can be your balance sheet, profit, and loss, accounts receivable aging and accounts payable aging. These will be important reports to turn to when you want to know your business’s financial standing, what your periodic income and expenses look like, who owes you, and who you owe.
As a renowned bookkeeping firm located in Langley, British Columbia, Infinite Accounting Solutions offers exceptional bookkeeping services for business owners interested in spending less time on paperwork and more time generating sales. Whether it’s generating revenue or spending time with family, most business owners want to prioritize the things they enjoy rather than handling their companies’ paperwork. We understand and want to help reduce the paperwork burden. We offer a variety of bookkeeping packages to fit your needs.
Our experienced bookkeepers provide clients with excellent customer service, expert accounting software knowledge, and advisory services to maintain up to date with industry standards.