Organized bookkeeping is the bread and butter of all businesses. Don’t get too hungry though, because we’ve barely begun with these scrumptious tips that will help you kick your business off in the right direction.
Efficiency is KEY!
One of the most important things to take note of when managing your business is to keep track of your chart of accounts. This simply means you keep track of your assets, liabilities, equity, revenue, and expenses. Keeping track of these reduces the risk of having to wonder where the money went or where it came from. These are the accounts you see on your ledger rather than your general transaction journal. This is a more efficient way to keep track of your transactions and helps you stay organized.
Drop your pen and paper, it’s time to AUTOMATE! Spreadsheets are easier to use and they are more efficient. Imagine being able to search specific transactions in an instant, imagine the time you can save! Automation not only allows for ease of access but as well as better organization and troubleshooting. This is also a great way to ensure that we don’t have to lose money from fees associated with late payments made.
Let’s not make it harder on ourselves to guess how much we have and how much our business has. Keeping separate bank accounts for our personal finances and business finances is a lot less of a hassle than you think.
This tip cannot be stressed ENOUGH! It is important to stay updated about the finances of your business. As mentioned earlier, bookkeeping is what can make or break your business. It would be much better to stay involved with the finances that concern your business. If you do not have the time, add it to your schedule to check up on your finances. There is no such thing as being too safe when it comes to money.
In line with staying updated about your finances, it would also be recommended to…
You may be thinking–“why would I want to hire a professional, it’s just adding my revenue and subtracting my expenses”– Well, there is more to it than adding and subtracting revenues and expenses. Hiring professional accountants help:
This saves you from having to study accounting terms and learning new methods while having to manage your business. While it’s great to learn these things on your own, getting professional help is still an efficient way to manage and organize your finances.