In our line of work, a.k.a. fast business financing, we see a lot of financial statements. For 2018, we thought it was important to talk about some best practices when it comes to your bookkeeping.
Tip 1: Keep it Organized
This may seem like a no-brainer but you’d be pretty surprised. Consider getting some sort of professional accounting system. It can be digital or physical. Keep all receipts, expenses, mileage logs, etc. You’ll make it easier on the accountant, your employees, and yourself when you can see where the money is going and where it’s coming from.
Tip 2: Get a Business Bank Account
You may be a solopreneur but you should not combine personal and business finances. Be sure to pay yourself from the company account just as you would pay your employees. And keep in mind, if you ever need to obtain a loan for your business you absolutely must use a business bank account.
Tip 3: Go Online
You can go online with your banking, payroll, accounting, and more! The benefit of going online is saving yourself time, energy and even money. Most accounting systems are cloud-based these days and are able to generate many different reports for you on-demand, in real-time. Some systems will generate invoices for you automatically. Think of the time and energy that is being saved. We’re big fans of QuickBooks to keep our books in check and the payroll organized.
Tip 4: Be Friends with Your Accountant
Your account is not just for once a year visits. Checking in with your accountant on a regular basis is a great way to get some financial advice. These regular check-ins will also help you to catch errors early. Better be proactive than reactive.
Tip 5: Leave a Paper Trail on Your Expenses
Be sure to use checks, debit cards or credit cards to make your payments. This way you get a bank statement showing when and how money was spent without having to remember. The problem with paying in cash is that it’s hard to track.
By implementing some of these simple strategies you can expect fewer headaches and possibly more profit for your business.