As a small business owner, your financial records are at the center of your operations. However, bookkeeping may not be your strong point. If you’re new to the business world, want to refine your bookkeeping skills, or just need a little help getting started, here are four basic guidelines you should keep in mind when you’re managing your business’ records.
1. Maintain Daily Records — If you don’t stay on top of keeping daily records, you won’t have a viable way to keep track of your business’ financial activities. Once you have a beneficial system set up, this task shouldn’t take you more than a few minutes every day.
2. Handle Checks Carefully — Treat the checks your business signs and sends out like cash. Always review cancelled checks as quickly as possible; use a clear, distinctive signature; and avoid assigning check responsibilities to someone else on your team if possible.
3. Leave a Financial Trail- Proper bookkeeping allows you to trace your business’ financial activities quickly and easily– even the transactions you completed months in the past. You can accomplish this by not mixing your personal and business accounts, keeping your invoices in numerical order, and not skipping check numbers.
4. Embrace Technology- Computer bookkeeping software is an essential tool for even the smallest businesses. If you turn your business’ bookkeeping duties over to an accountant, they will use advanced programs to summarize your company’s financial records, track your income and expenses, back up your records for emergencies, and help you feel confident about your business’ finances at all times.
At Gecinger Tax & Accounting, we will be happy to help you set up and succeed at bookkeeping for your business. Contact us today to learn more.