Top Tips for Better Small Business Bookkeeping

Good Bookkeeping practices are the backbone of a successful small business. If numbers are not something that you enjoy, bookkeeping might seem like a nightmare to you. But unfortunately, it is a task you can’t avoid. So to make your life easier, we have some tips to share that make small business bookkeeping much more straightforward.

Do Not Mix Business and Personal Finances

A common mistake in small business bookkeeping is mixing personal and business finances. Segregating them at the end of the day becomes extremely difficult as it entails recollecting every income and expense from each source. The best method to resolve this issue is to open a separate bank account dedicated to your small business and avail a different business credit card. This was you build your business’ credit rating as well.

Choose To Automate

It can be a tedious task, entering data one by one on a spreadsheet and calculating the numbers in the old school method. Opting for cloud-based bookkeeping software and choosing online banking online simplifies this task. It is best to sync your bank account and cloud-based bookkeeping software to maintain a precise and accurate record up until the last second. An added bonus is the safety that you get when you choose cloud-based software.

Conduct Financial Checkups

If you delay your bookkeeping for quite a while, it can pile up leading to an unorganized and unmanageable condition with several overdue invoices, multiple bounced checks and much more. Often there are deadlines attached to payments that you do not want to miss. Therefore at least maintaining a weekly check on your bookkeeping is a good practice to uphold.

Perform Quarterly Reviews

Another method to perform bookkeeping is to conduct a quarterly review. Take time to go in-depth and examine your accounting records. This time is perfect for looking at any growth or decrease in sales and yearly revenues. Consult with your accountant as they will be able to give you a better understanding of the overall picture and help you be prepared for future investments or capital needs.

Maintain Business Expense Record

Consult your accountant regarding taxes and tax code regarding the expenses that can be deducted from next year. For anything that is a business expense you plan to claim, you will need to maintain a proper detailed record of the expense. A simple way to simplify the process is to track your expenses by exclusively using your business credit card for any purchases.

Expense Account

All businesses should have the bare minimum ability to cover basic needs such as office supplies or even average maintenance expenses. Even with considerable expenses such as repairs or significant capital expenses such as new equipment, you should not disrupt your regular business cash flow; maintaining a monthly pool of money for all your potential expenses removes the need to tap into the cash flow.

Employee Tracking Software

To monitor your employee’s hours, you need to have a reliable cloud-based time tracking software that allows employees to have a digital clock in time. They can use their own electronic devices to clock in, and you avoid all of the hassles. Find software compatible with your bookkeeping software for seamless payroll activities.

Monitor Receivables

You should always keep a close eye on your accounts receivables. If customers do not pay on time, your business’s cash flow is disrupted and can affect other factors of your small business. If you have receivables due, it is within your right to contact such customers and give them a nudge or a reminder. Even if the customer is facing financial issues, you should at least get a portion of your receivables.

Tax Deadlines

For all small businesses, tax season is the most critical yet stressful part of the entire process. Plan and set aside money for tax bills. Ensure that you pay in time so that you do not face any fines or miss a deadline. Sync your calendar and set reminders to avoid incurring penalties.

Get Help From Apex Accounting

Bookkeeping takes too much time and can be highly stressful for all small businesses. Do you want to get rid of the tedious task of bookkeeping and focus more on improving, innovating, snd creating for your business? Then Apex Accounting is the right choice for you. Apex Accounting provides accounting services and bookkeeping services for small businesses. Become worry-free with Apex Accounting as we provide you with the most accurate and up-to-date records, from journal entries to financial statements. We have experienced small-business accountants in Toronto to assist you with customized bookkeeping and accounting services. To learn more, call us at (647) 979-7728 or mail us at info@apexaccounting.ca.