Without a doubt, January is one of the busiest months for most businesses because it is the time where recreating financial records is essential. Keeping abreast of your financial records provides you an idea where your business is headed. However, bookkeeping can be really stressful once your mind gets cluttered up with loads of financial information. Bookkeeping does not have to be a daunting task if you can properly manage your records.
1. Create a system – For sure, you have already identified your business’ areas for improvement and this year, you need to improve your system so you can keep up with the demands of your business. If you continue to follow ineffective practices, your business processes will remain stagnant. Technological advancements can help you speed up the bookkeeping process. For instance, software programs that enter the information quicker than the old process allows you to attend to other business transactions. These software programs also make record-keeping more practical because you get to store essential information in your data base so you can easily retrieve them in the future. You can also closely track your payments for taxes using the software.
2. Capture data in real time – It might be easy to miss out on capturing unnecessary details such as using your personal card for your business because you forgot to bring your business credit card. However, when using your personal card for business transactions becomes a habit, the expenses can add up causing you to be entangled in a diabolical mess. These details, when overlooked can cause you to pay more income tax than you should. See to it that you record or capture every detail of your transactions so you will know where your business is going.
3. Have a separate folder for your business expenses – It is easy to include all of your receipts and invoices in one folder, but if you are going to need them for keeping track of your financial activities, you will realise that everything is mixed up. Instead of placing all receipts in one folder, have a separate folder for your expenses so you can easily retrieve them. Not only will you speed up the process of generating your invoices, but you will also save time as the documents you need are already available.
4. Update your data base regularly – Aside from setting up a system, you should also update your data base on a regular basis so you will know if there is any duplicate entry. However, you should take note that updating your data base does not have to happen every day. It will be greatly dependent on your business needs.
If you always dread bookkeeping, ensuring that your financial records are organised can help you reduce the stress that the process entails. When you do it regularly, you will begin to notice that you save time and attend to other obligations. The next time you recreate financial records, make sure you keep essential information handy.
Peter Broberg is a bookkeeping professional with over 20 years experience in the finance sector. With more than 2 decades of experience, Peter provides payroll and bookkeeping services on a professional level. His services cater to small and medium enterprises in Cannington, Kalamunda.