For most business owners, bookkeeping is probably their least favorite task. However, if you’re running a small business, you have to make sure you stay focused on accounting. If you don’t manage debt, receivables, and marketing expenses accurately, your company will sink before it grows.
To help you adopt some good habits that can help you avoid costly errors when it comes to record keeping, Henderson Fleischer Roller has put together five tips to help small businesses manage their bookkeeping better.
Tip #1: Keep your paperwork organized.
Label and categorize each expense and make sure to file that paperwork. It will save you time in the long run.
Tip #2: Reconcile your bank account monthly.
By doing so, you will catch mistakes early on and not have to waste time going back to your paperwork to check what you missed or entered incorrectly.
Tip #3: Follow up on your Receivables and Payables.
Make sure that you are receiving money for the services you have provided. You also want to make sure that you are paying your own bills on time to avoid penalties and interest.
Tip #4: Don’t miss due dates.
Every business has to report to their local government agencies. Don’t miss important due dates for government accounts. You want to stay under good standing to avoid getting audits.
Tip #5: Save all business-related paperwork.
There’s usually a lot of paperwork and documentation to deal with in small business bookkeeping. It would be best if you kept these important papers safe and well organized.
It’s important to do so because, in case of an audit, you will have to show proof.
Types of paperwork to keep for records:
a. Bank Statements
b. Credit Card Statements
d. Vendor Invoices
e. Sales Invoices
f. Government Filings
As a renowned accounting firm in Oakville, Ontario, at Henderson Fleischer Roller, you can be sure that you will receive the best range of small business office solutions including software training for owners/staff, procedure writing, and Human Resource management. Our Bookkeepers ensure your books are kept up to date and organized, allowing you to focus on growing your business. Serving businesses in the Fraser Valley from 2008, we offer our clients excellent customer service, expert accounting software knowledge, and a commitment to your business’ success.