Tips for Good Bookkeeping Practices

Buried in paperwork?

Try following these 7 useful tips to keep your books orderly and up-to-date!

  1. 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.
  2. 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.
  3. Know your deadlines. Make sure that you have a calendar in plain sight where you can track your due dates.
  4. 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.
  5. 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.
  6. 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.
  7. 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.