If you want to get (or keep) your accounting books clean, it is important to make time to sit down and review your books monthly or at minimal, quarterly. If you review your accounting books regularly, you will avoid costly mistakes!
Here are my top 5 bookkeeping secrets:
1. Keep an audit trail: I know, fancy bookkeeping words (scary to some because of the word audit) but an audit trail is simply a record of all your invoices, checks and expenses in numeric order. Does it sound daunting? Don’t worry – there are many options to choose from when it comes to bookkeeping software. My personal favorite: Quickbooks Online.
2. Due date reminders: Use your Outlook calendar, Google calendar, wall calendar… anything! Be sure to set reminders for bills that are due, tax remittance deadlines, payroll remittance deadlines. You could save thousands of dollars per year simply by paying your bills on time (not to mention keep your credit rating in check).
3. Bank statements: With the advent of the internet, e-bills are all the rage. Sure, it’s ecofriendly but if you ever get audited, the auditor is going to want to see physical copies of everything, not digital. So, at the very least, you should download your bank statement every month and keep the digital file hand. That way if you need to, you can print it immediately.
4. Keep good records: Too many business owners do not keep good records. Bookkeeping is the glue that keeps your business together. Without good books, you cannot make financially sound decisions for your business.
5. Computer software: The biggest mistake people make is not taking the time to set up the software correctly when they install it on their computers. If you want a financial report you can trust, you will need to be sure it is set up correctly from the start.
Incorporating these simple strategies into your bookkeeping cycle will help streamline the books and make bookkeeping less stressful.
If you are looking for more help, or feel having your books done by an accounting professional, please reach out to me by email: Rebecca@RHBizSolutions.com
Here's To Your Success!
RH Business Solutions