3 Bookkeeping Habits That Are Helpful For Your Business
Bookkeeping is an essential part of running a business or being a creative entrepreneur. How can you possibly know how much you have spent or how much you owe without keeping up to date with your accounts? No matter the size of your business, you must always endeavour to be one step ahead of your expenses. This will help you understand your cash flow at any given time.
1. Choose your software wisely
An efficient business needs to get back to basics. Is your bookkeeping system really working in your best interests? It all comes down to the essentials and the choice of software. With so many options out there, it is important that you find the one that meets your requirements. If you have not tried Xero, then you may want to look into it. It offers great flexibility, real-time speed and many integrated add-on solutions.
2. Keep all your receipts and invoices
The only way to ensure that your books are accurate is to keep all of your receipts and invoices, especially those cash expenses which can be harder to track. It will enable your records to be as accurate as possible. Your software should be able to keep track of which payments are outstanding, and all monies in and out should be tallied with the corporate bank account. Don’t let any payments fall through the cracks.
3. Update your books as regularly as possible
Your bookkeeping should be done at least on a weekly basis to make sure your figures are up to date. It will help you maintain your profit and loss accounts, and allow you to understand your financial situation at a glance. Knowledge is power and can help you make the best decisions for your business.
And here’s a bonus tip for you. If you really cannot get your head around keeping track of your expenses and cash flow, then it is worth hiring a professional. Putting the task off purely because you don’t like to do it can have negative ramifications on your business. The staff at The Accounts Studio has many years’ experience in finance and bookkeeping and has worked on a vast range of different industry files. You can view the range of our bookkeeping packages here.