4 Basic Bookkeeping Tips For Your Business
Posted by: Brookside Admin
Proper and effective bookkeeping doesn't generally take any advanced knowledge to perform. Being able to do it, however, makes a significant impact on the success of your business. By properly recording each transaction, you're able to stay on top of finances and always have specific knowledge of the state and health of your business. If you're struggling with bookkeeping for your business, try implementing some of these basic tips. Or, just call Brown Kinion and Company for help from experienced CPAs.
- Make it a daily habit
The biggest problem with bookkeeping is that it's time consuming. You don't need high level math skills to record transactions. But, you do need time. Effective bookkeeping requires daily attention. Doing so means you always know exactly where your business stands. Failure to do so leaves you in the dark until the end of the month when you have to devote hours to catch up. It doesn't even matter what system you use, as long as it's one you can easily decipher and one you're comfortable devoting some time to every single day.
- Open a business account
The simple act of opening a new bank account solely for business expenses doesn't directly impact your bookkeeping abilities, but it does make bookkeeping for your business much simpler. Rather than sorting out personal expenses, with a dedicated business account, you know that each time money is added or withdrawn from the account, it's a business expense and needs to be relfected in your books. If you're ready for a business credit card, it works under the same principles.
- Leave a paper trail
No one is perfect. When it comes to bookkeeping, however, inaccuracies could potentially mean serious consequences for your business. Should you need to audit your own activity, you'll want a system in place that easily allows you to retrace your steps and find where the error occured. That means an organized filing system is needed for all invoices, checks and the like. You should be able to quickly recreate your company's finances from a year ago. If you can't, you need a more substantial bookkeeping system.
- Choose the right software
The needs of your business when it comes to bookkeeping may be slightly different than the needs of another business. With that in mind, it's important to choose an accounting software that fulfills all your needs. You could try a tailored software specifically for your industry. Or, you could use a universal software like Quickbooks that can be tailored to fit your needs. At Brown Kinion and Company, we recommend Quickbooks and even offer an advisor to answer all your questions. The most important thing is that you're comfortable using the software and able to use it to its full potential.
Whatever needs you have related to your small business's finances and accounting, the CPAs at Brown Kinion and Company are here to help. We have offices in Tulsa / Bixby and Broken Arrow and would be happy to discuss making accounting duties less stressful for you.