Admittedly bookkeeping is not one of my favourite aspects of business and it is one that I would quite happily outsource in a heartbeat. Words, rather than number are my specialty, just ask my husband as I regularly forget important dates and telephone numbers which might otherwise have been useful on a number of occasions.
For those that process their books in-house, there are ways in which you can improve your bookkeeping habits and save you money. After all more money in your pocket is better for your business, right?
Slow down. Bookkeeping can be painful when you fall behind, especially at tax time when you are rushing to catch up and finish the records before a due date. Be ahead of the game as rushing through the books may lead to errors which could otherwise be avoided.
Have a schedule. Sending out invoices on an ad hoc basis will lead to ad hoc payments. Cash flow is one of the most important aspects of your business so why jeopardise that by sending invoices out late? Maintain a regular schedule so your clients know when to expect them.
Save for a rainy day. Could you tell me exactly how much money is in your account at this moment in time? Never guess – as guessing can leave to overdrawn accounts and large bank fees. Plan to save before things take a turn for the worse and get into the habit of regularly checking your accounts so you know where you stand financially.
Mind your software. You don’t need to have the latest bookkeeping software in order to perfect your systems. If your current system is working for you then continue to use that until you feel to need to upgrade or are interested in doing more with your bookkeeping processes. Switching systems unnecessarily can cost you money and time. However if you are keeping all of your receipts in your top drawer then you do need to invest in software which will accurately track your expenditure and income and help you to grow your business and make accurate forecasts for the future. Definitely weigh up the pros and cons before you change your systems or get advice from someone in the bookkeeping business.
The more you are on top of your bookkeeping, then the more rewarding you will find it, especially when you can see that your business is growing from strength to strength as the year progresses.