Managing your books is a cumbersome but
critical task for any business. It is very time-consuming, frustrating,
and could mean working late hours. However, it has to be done to know
the worth of your business and to satisfy the government for taxes. You
also need to do this on a regular basis to get an accurate idea of your
How do you make this a stress-free task work for you?
Some small and medium businesses either employ part-time bookkeepers
or do the work themselves. No matter how it is done it is still a
mundane task involving shuffling papers and working extra hours. Often
there is a twinge of doubt that you are not doing something quite right
or are missing important information.
Ask any entrepreneur why they went into business and you'll get a
hundred different answers. Odds are that "do bookkeeping" was not on the
list even though bookkeeping is the core of any successful business. It
is the way to measure growth, keep cash flow positive and track
Bookkeeping is like learning to play a musical instrument. The secret
is to learn the fundamentals and create a system that works for the
Here are a few tips that could prove helpful to make the right decision for bookkeeping and accounting needs:
Don't mix business and pleasure:
Get a business credit card to enable you to separate your business
expenses from your personal. By this time you have already started your
business checking account. So adding that business credit card will help
you establish and build business credit and points. Co-mingling funds
between personal and business is not a productive or efficient way of
doing business and can prove to be a headache at tax time.
Keep it simple:
When creating your business in your accounting software don't create
too many categories in the chart of accounts. For example, office
supplies will be a sufficient category rather than separate categories
for paper, letterhead, printer supplies, etc. This complicates profit
and loss and adds time to the day-to-day activities when items are being
Automate your invoicing:
There are many online invoicing services that allow you to schedule
invoices for clients who are charged on a regular basis. You will find
that most accounting software has the ability to memorize invoices that
reoccur monthly. The day of the reoccurrence can even be set such as the
first of the month.
Use the right accounting software:
There are many accounting software packages out there that you can
use to assist you with your accounting and bookkeeping needs. Of course,
I highly recommend QuickBooks but there is also a wide variety of Open
Source software which is free to download. Additionally there are a wide
variety of free manuals and tutorials online.
Outsource to a virtual bookkeeper:
Outsourcing to a virtual bookkeeper saves time, money, worry, and
headaches. Many business owners take two common approaches to tackling
the issue of bookkeeping. They try to do it themselves – which is time
consuming and can lead to costly mistakes. They pay large firms to do it
– which is unnecessarily expensive. A professional bookkeeper has the
skills and experience to do the job right. There are many advantages to
outsourcing your books. Save money, save time, and the need for extra
help. The biggest benefit is your bottom line.
• Books that are inaccurate do not reflect the true health of the business
• Being clueless at any level about where the money is going is not being in control of your business.
Business people need to focus on the business:
There are many aspects to running a business and the most important
is earning money. Some things just have to be delegated in order to
maximize time and productivity. Bookkeeping can be a painful and time
consuming process and many business owners do not have the expertise or
knowledge to get the job done right. Time spent on bookkeeping
activities is time away from making money.