| While bookkeeping may be a mundane task for most | | | | bookkeeping, and sticking to it, you make the task less |
| small businesses, it is definitely one of the most | | | | daunting than it really needs to be. Additionally, by |
| important aspects of a successful small business. | | | | paying your bills weekly, you save money by potentially |
| Errors, omissions and incorrect information can cost a | | | | avoiding late charges. |
| company significantly when tax time approaches. | | | | 5. If you invoice your clients, be sure to monitor your |
| Below are some best practices to keep in mind when | | | | collection procedures and outstanding invoices. |
| it's time for bookkeeping. | | | | Payment terms should be clearly written on every |
| 1. If bookkeeping is not your thing, find someone to do it | | | | invoice you send out. If you work off contracts, these |
| for you. Trained, skilled bookkeepers can help you | | | | terms should be mentioned in your contract, as well. |
| efficiently keep track of all your income and expenses. | | | | Set terms at Net 15 or Net 30. When working on long |
| They have the necessary skills to do the job quickly | | | | projects, charge at regular intervals. Don't wait until |
| and efficiently and they will often prove as a second | | | | your bill is so high that if payment is not made you'll be |
| pair of eyes to find errors and make suggestions. | | | | financially hurt. Cash flow depends not only on how |
| 2. Use a good accounting software program. This will | | | | much you make per hour but also on receiving |
| help you keep track of expenses and income into the | | | | payment in a timely way. |
| appropriate accounts. You will know, at any given time, | | | | 6. Back up your data. This cannot be stressed enough. |
| how much you've spent on office supplies this year, | | | | If you only have one copy of your bookkeeping data |
| and how much your gross sales are, too. The ol' | | | | file, you risk losing all of your valuable data to a power |
| ledgers have gone by the wayside. Use it to start the | | | | surge, hard drive failure, or some other tragedy....and |
| fire in the wood stove! | | | | believe me, when you lose your data, it's a tragedy. |
| 3. Reconcile your bank and credit card statements | | | | Whether you back up to a thumb drive, an external |
| every month. This will help ensure that you've not | | | | hard drive or an online backup service, it's well worth |
| missed entries into your checkbook and that all money | | | | any expense and time to take care of this important |
| going out is tracked and accounted for. | | | | step. |
| 4. Be consistent. Set aside a certain time every week, | | | | 7. Keep a separate business checking account. Not |
| or month, depending on the size of your business to | | | | only does this make you look more serious in the eyes |
| organize your expenses and income and enter it into | | | | of the IRS, it will also help you keep personal and |
| your accounting program. By scheduling time for | | | | business expenses separate and organized. |