Bookkeeping is more than recording what finances come in and what goes out of a business. It is a wonderful practice helps business owners understand where they need to reduce the expenses and where they can gain more profit. Bookkeeping is a core area that provides knowledge about the profit and loss. Here, the basic bookkeeping tips have been discussed and this would be useful for the small businesses.
- Consistency is essential: Being consistent is the best way to lead to success. Always be sure to head your columns the same way, if you are using paper bookkeeping system. It may be a trivial but it would save you and your accountant time and stress.
- Keep genuine records: Many business owners will not keep good records. Few do not understand the meaning of bookkeeping itself. Those people should change their perspective. Bookkeeping is a paste that keeps your business together. If your records are in a weak status, hire expert bookkeeper Melbourne since sometimes you will not be able to understand the expenses and the income and not be able to decide on the profit. This creates a massive chaos in your transactions.
- Audit trial: Your bookkeeping will be more effective if you have a system that quickly retrace and analyzes the financial transaction of your company. It is nothing but keeping your invoices and checks in numeric order with respect to the invoice number and not skipping check or invoice number and separate bank account for personal and business funds.
- Keep a due date reminder: You should follow a check off list whether you have a payroll services or you are preparing payroll tax returns by yourself. Keeping a good due date reminder will be the best idea to pay the payroll tax on time.
- Utilizing the deposit ticket books would help you to handle your bank deposits.
- Bank Statement: Request a bank statement from your bank with a month-end-cut-off date. This will save your time while reconciling your records with the bank statement every month. Or your bookkeeper can do this for you.
- Many small businesses make purchases paying small amount of money. In such cases, setting up a petty cash box would help you to control the unnecessary purchases. It is important to maintain the same value all the time. For example, if you allocate $100 to the petty cash box. If you make a purchase of $10, you have to keep the receipt for the item purchased in the box. So the value of the box will be $90 + a receipt of $10. Hence the total will be $100.
- Improve the habit of depositing the cash immediately at the bank once you received. This would ensure that the incomes are properly recorded.
- Restricted categorization: Do not over categorize the items. This would increase the complexity. For example, fax papers, letter head, printer cartridges, etc. can all be counted under office supplies. They do not require separate categories.
- Complete your bookkeeping tasks each day. It is not advisable to postpone it. If you were not able to get time, don’t worry you may still avail some of the bookkeeping providers in maintaining your transaction. Have a systematic practice in monitoring your transaction on daily manner.
These are all the quick tips that you need to remember to have hassle-free bookkeeping records. It is quite interesting to maintain a systematic record keeping.