Bookkeeping, by definition, is a systematic record of a company’s financial transactions. Is your box full of receipts? Can’t locate the checks that were paid to you? If the answer is yes, then it’s time to do the accounting.
Accounting ends with score keeping, but begins with updating. Here are some tips to make accounting easier. I hope it can help you organize and keep your business on a sound financial footing.
First, choose the correct accounting system that suits your business. You can use the accrual method or the cash method, whichever suits your business best. If it involves more credit transactions, the accumulation method may be more suitable.
Second, update your daily logs. Always keep it accurate and keep them organized. It doesn’t hurt to invest in good bookkeeping software or record keeping systems. Of course, there is the ever-handy computer where you can store these files and make updating your daily logs easier.
Also be consistent and accurate. If you buy something always ask for receipts. If you canceled a check, remember to update it in your records.
File all your invoices. Organize them and keep them in a box that is accessible.
Keep a small petty cash box for miscellaneous purchases. Of course, you should still keep receipts for small purchases. This way it is much easier to keep track of your expenses in small amounts.
Lastly, keep your receipts, bills, checks and bank statements organized. Keep your records traceable for at least one year. That is, it has to be in chronological order to make it much easier to count.
Just being organized is enough to make sure you’re on the right track.