Learn something new every day
More Info... by email
If you are performing small business bookkeeping, try to keep up with the work on a daily basis. You should also be consistent in the way you categorize expenses and manage your books. Try to keep good records both in paper and electronic form if possible. It might also be a good idea to set up reminders for certain events such as reconciling bank statements or paying any taxes that are due.
Many times, the task of business bookkeeping is put aside or thought of as not that important. This is usually until it is time to file a tax return or pay employee bonuses. Keeping up with this chore daily can relieve some of the stress associated with this event and help you remain more organized as well.
Consistency is very important when it comes to small business bookkeeping. Try to categorize expenses in the same manner each time. Likewise, you should also develop precise methods of recording accounts payable and receivable and use these techniques on a regular basis. Try to make sure everyone in your office keeps these records in the same fashion as well. This can be helpful in the event someone else may need to inspect or help maintain your records.
Keeping precise records can also be very important. Try to manage your small business bookkeeping in both paper and electronic format if possible. Becoming familiar with basic bookkeeping software can help you do this. Make sure you record any voided checks or invoices as such so there is no gap in numerical sequence; doing so can be very helpful in the event your establishment is audited by a revenue agency.
Also, try to make sure you do not miss important deadlines. You may want to set up reminders or mark on a calendar when certain things such as taxes are due. Try to establish a standard length of time for your small business bookkeeping team to reconcile bank statements and past due accounts at the end of each month as well.
Small business bookkeeping can be a very stressful task for many business owners. Knowing the basics on how to do this can sometimes relieve some of the tension associated with this process. Whether you are a new business owner or have many years of experience operating one, you should not underestimate the importance of staying current in your accounting procedures. Doing so can save you time as well as hassle down the road, should your books require a tax audit.
One of our editors will review your suggestion and make changes if warranted. Note that depending on the number of suggestions we receive, this can take anywhere from a few hours to a few days. Thank you for helping to improve wiseGEEK!