Top Bookkeeping Tips
You are about to discover the top bookkeeping tips for managing your finances. Follow these tips for easier bookkeeping, better finances, greater ease, and peace of mind. These tips will help you to overcome the major mistakes many people make, and have less trouble with bookkeeping.
When you are recording your transactions, you need to organize your paperwork according to basic bookkeeping principles to keep everything clean and organized. While this is a simple concept, you’d be amazed at how much time and money would be saved if everyone followed this simple rule.
Look at how much your business is earning each hour. If you are making more than the cost of hiring a bookkeeper, you should enlist their services. Here is why: Let’s say your business earns you R300 per hour, and your bookkeeper would cost R200 per hour. Then, for every hour you waste doing your bookkeeping instead of working in your business you lose R100 per hour. It’s actually a profitable exercise to hire someone else to do it in many situations.
Account for all of your money and protect yourself from financial losses by recording all your bank transactions into your books. Then balance your books and check that your transactions for your business and your bank account are all correct.
Utilize the information in your books for business intelligence. You keep alert as to how your money is being managed on a daily, monthly and yearly basis. Keep track of your cash in the bank, liabilities and assets, stock and watch how it changes overtime. Noticing seasonal trends and routine patterns can allow you to make business decisions to strengthen your company.
Have due date reminders that tell you when you have to pay out your taxes, payroll, bills, etc. This is a simple concept but it can make a great difference in your businesses financial organization. If you are a small business owner it is easy to lose track and have bills pop up on you, or taxes you need to pay. Keep a check list of all your taxes, payroll, etc. Along with when you need to pay them so you don’t get any nasty surprises. If you are an entrepreneur or a busy manager, it’s so easy to get overwhelmed.
Keep a record of every invoice and cheque in a numerical order. This allows you to audit your books at any time and check any oddities with ease. Never skip a number. Record all voided cheques.
More important than anything track all of the transactions, changes and movements of assets, liabilities and financial dealings. Good record keeping and consistency could one day save your business. It can allow you easier access to capital, sell your business for more money, and become better at extracting profit from your enterprise.