5 Tips for Being Your Own Bookkeeper

If you are an entrepreneur, you must be nice with money, right? Not always the case. Here are some money tips for business owners, whether you are a sole owner or have a handful of employees.

Tracking

All business related expenses need to be tracked. Even in the event you work in your vehicle, you need to have a file or container to put your receipts & invoices in that is designated for business expenses. Get in to the habit of not throwing any receipts away. In the event you are not used keeping all of your business receipts, pick something that will work for you. Pick a pocket of your purse to put every receipt in. Automatically put all of your receipts in your wallet & empty it in to a file every week - or every day. discover a process that works for you.


Record Deposits Correctly
Your accounting program ought to be checked against your bank statements so that you can make sure your deposits match exactly. Also with returns, its necessary that they are recorded to the expense account that was originally used with the item was bought.


Taxes
Don't get caught at tax time without the money to pay your taxes. It is a nice suggestion to set aside money from every deposit for this sort of expense. Taxes are paid quarterly in most businesses, & in the event you get behind on your quarterlies, you could finish up digging a deep hole for yourself. The toughest money issue to get used to for new business owners is that all money that comes in does not profit make!

Accounts Receivable

Watch your accounts receivable. Don't let late pay clients bring your company to its knees. Money flow issues can be a business killer. In the event you are not comfortable asking your clients to pay their bills, it is important to find another person to do that for you. Often entrepreneurs & business owners start their business because they have a passion for their product or service, not a passion for bill-collecting. Timing may even be a factor here that a second pair of eyes trained in bookkeeping can help you overcome annual cycles of sales highs & lows. Something as simple as adjusting due dates could make the difference in money flow.

Enter Transactions

Procrastinators beware! Don't wait until the finish of the year to enter your transactions in to your accounting program. In the least, enter your transactions the week your bank statements arrive. You will get to know your business better in case you balance your incoming & out going transactions on a regular basis. Schedule a time on your calendar, like any client meeting or sales appointment to do your books. In case you are busy for this, seriously think about getting a bookkeeper.


Get a Bookkeeper

Your bookkeeper is not your accountant. A trained bookkeeper is of those expenses that bring a return on your investment. They know your accounting program better than you & what takes you hours, takes them minutes. If knowledge entry is what you started your business for, by all means, go to town. When you think about what your time is worth, how plenty of sales you could be making in lieu of looking for a lost deposit, or in case you think "I'll do the books next week" each week, time to hire a bookkeeper.

Adapted from : Angie Lorshbough