3 Bookkeeping Tips That Will Help You Succeed

You may not believe me, but you will think differently about bookkeeping after reading this.

While the word “bookkeeping” may strike fear into the hearts of some small business owners, keeping things in perspective can help. 

There are many ways to minimize the so-called “pain” associated with this part of running a business. 

After all, good bookkeeping is crucial to success.  

Here are 3 tips to help you think differently about bookkeeping for your small business.

Keep home and business separate.

It is tempting to grab your business credit card for personal items, especially if your personal account is a little low on funds. 

Try and resist. Buying something on the spur of the moment means that you might forget about paying your business back once you get home. 

Plus, how are you going to record that purchase in your accounting software? 

There is potential for things to get very messy. Mixing things up also creates a lot more work for you when the time comes to sort it out

Make a date with your finances.

Even if you hate bookkeeping, dealing with the books must become part of your routine. 

Scheduling a weekly check-in with your finances is a good way to stay on top of things. 

Try spending 15-30 minutes a day working on your bookkeeping system and you will gain a lot of insight into your own business. 

You will become more organized because you will be more on top of things. Better organization means that you will have just the right things to hand over to your accountant come tax time.

What a relief that will be!

Remember to get paid.

It’s surprisingly common for a service provider to get the job done, invoice the client, and then forget to follow up. 

You could carry on working for a long time before you realize that you haven’t been paid. 

It is important to track all invoices and have systems in place for a follow up. 

Not only do you need to know if you’ve been paid, but also when. It’s useful to look at the length of time it takes for a client to pay up. 

If one of your clients is consistent in late payments, it might be time to let them go. As you can see, tracking invoices well can give you valuable insights.

Hopefully these 3 bookkeeping tips have opened your eyes to a few things. It’s so important to keep on top of your finances and, with a focused effort, it doesn’t have to be painful at all.

Disclaimer: This content is for entertainment purposes, and not intended to be proper tax or legal advice, please consult with a professional regarding your specific tax or legal situation(s).