When you are hard at work making your business a success, it can be easy to forget about back end documentation and accounting processes such as bookkeeping. However, when it comes to filing your taxes, efficient bookkeeping can be a great tool to measure growth in the organization and put a pulse on successes and challenges.
Mastering bookkeeping software
One of the simplest solutions to your bookkeeping woes is to learn accounting software (Also see Is online accounting same as conventional accounting software?) and keep track of your expenses digitally – e.g. Xero Accounting or QuickBooks. Learning the basic features of bookkeeping software such as printing reports or checking whether the numbers are accurate can go a long way in keeping your accounts in order. Before delegating the process to your staff, try devoting a few hours into mastering accounting software and taking charge yourself.
Outsourcing or hiring in-house
There are few ways to find a bookkeeper to do the legwork for you. You can outsource the job to a reputed accounting firm in Johor Bahru such as Back Office Partners, which would lead to better savings versus hiring someone full-time. Alternatively, you can have an ‘in-house’ bookkeeper part-time or full-time at an hourly rate. The bookkeeper can come by your office every day or a few times in a week for data input or printing reports.
Keeping your paperwork in order
Having organized paperwork plays a big part when it comes to maintaining your bookkeeping. For instance, if there is ever a court case regarding the refusal of payments from a client, your accounts can support your case. Whether it is for tax auditing purposes or accounting for a missing receipt, bookkeeping can help you run the business efficiently.
Separating personal and business finances
If you are a business owner maintaining your own records, make sure to stay away from the mistake of combining your personal and business finances when bookkeeping. So, having a separate bank account for your non-business related expenses is ideal. Using a different cheque book for making business payments will also streamline your bookkeeping later on.
Updating the books regularly
While doing one’s bookkeeping is not the most exciting task, it is important to keep a system in place to update accounts whether that is on a weekly or bi-weekly basis. There will always be short-term problems and chores to take care of, but big gaps in updating your books will only result in a waste of time and energy at the end of the month.