April 25, 2016
As a small business owner, keeping on top of your finances and trying to uphold and maintain a series of good bookkeeping habits, can be the difference between success and failure; it really is as simple as that.
So here are 5 of the most important bookkeeping habits that owners can adopt in order to keep their small businesses afloat and thriving:
1. Don’t be afraid to seek professional help
Owning a business means that your time is always stretched, and there can be some time consuming aspects of running your business that could easily and effectively be outsourced.
Seeking professional help is not a sign of weakness and more often than not, the cost of hiring an expert redeems itself very quickly, and can actually end up saving you money in the long term. Not only that, but just because you own a business, doesn’t necessarily make you an expert in bookkeeping, so hiring a professional could save you having to learn new skills yourself and possibly getting it wrong in the process!
Many small businesses also take advantage of their accountants help by using them throughout the entire financial year, rather than just at tax return time; finding that their advice and guidance can be instrumental in helping to secure the success of their business by spotting potential problems before they have a chance to occur.
2. Keep track of your business reports
Hiring a professional to complete much of your bookkeeping, shouldn’t mean that you take no interest in what’s actually happening with your business; understanding your business is crucial if you want it to grow and prosper, and so reading through your business reports should be a fundamental part of your management process.
3. Purchase suitable software
If you’re relying on software to assist you with bookkeeping, ensure that you buy what is going to help and suit your business requirements, most effectively, irrespective of the cost. This is a decision that will undoubtedly pay dividend in the long run.
4. Keep track, and keep hold of, all of your receipts
Receipts are an essential component of your businesses success, after all, if you don’t know how much you’re spending, how can you possibly keep track of your profits and losses?
When it comes to credit card transactions, things are a little simpler as you’ll have a paper receipt and a monthly statement to check them off against. Cash expenses can be a little trickier to keep track of, so holding on to all cash payment receipts is essential.
5. Keep a careful eye on your invoices
Ensuring that the invoices you’ve issued get paid, means that you must keep regular and updated records of each and every one that you’ve sent out. Some accounting software can do this for you automatically, and will flag up any unpaid invoices for your immediate attention.
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