Tips for Good Bookkeeping Practices
Buried in paperwork?
Try following these 7 useful tips to keep your books orderly and up-to-date!
- Keep all your receipts in one place. It is a good idea to keep a pouch or envelope for receipts in your car or briefcase and/or on your desk. Don’t worry about sorting the receipts, just collect everything. Save all original bills because a debit or credit card receipt will not be sufficient if you are audited.
- Keep business and personal expenses separate. Try to keep business and personal receipts separate. If you have a bill that includes personal and business expenses, use a highlighter to quickly and efficiently separate the two categories in order to more efficiently manage your bookkeeping.
- Know your deadlines. Make sure that you have a calendar in plain sight where you can track your due dates.
- Use a computer. If you do not have access to an accounting program, it is still a good idea to use a computer to track your expenses and sales in a digital spreadsheet.
- Send a monthly statement to customers. Take time at the end of each month to see which customers still owe you money. Send out a monthly statement to those customers because sometimes all they need is an extra reminder. Adding interest is also a good way of creating an incentive for customers to pay you on time.
- Try to reconcile your bank monthly. It’s easiest to reconcile on a monthly basis to spot any mistakes early. It’s also easier to remember specific details within the month of their occurrence as opposed to six months later.
- Outsource. If you find you are spending more time on your books than on your business, outsource your bookkeeping to a bookkeeper. Remember you didn’t start your business to do your books.
