How often do you think about bookkeeping? Unless you own your own business , it’s probably not often enough. But even if you do own your own business, you may still be guilty of not giving bookkeeping the attention it deserves. Make time to attend to these six tips for efficient bookkeeping practises, and your bookkeeping will become second nature in no time!
Tip 1 – Know what you’re working with
The first step to maintaining good bookkeeping practises is knowing exactly what you’re working with. You wouldn’t perform surgery without knowing where everything is, so don’t try to manage your business accounts without understanding how they work and how each part interacts with one another. This can be achieved by taking time out of each day or week (or even month) to log into your financial platform and make sure you know exactly where everything is at.
Tip 2 – Keep an eye on cash flow
Regardless of what stage your business is in, you should have a clear picture of how much cash you’re generating from sales and where it’s going. It can be tempting to spend all that money on marketing, but keep an eye on where cash is coming from to know whether or not any new investments are worth it. Ask yourself these questions: How much cash am I currently generating? How can I use that money to generate more? What am I already doing with my cash flow? Do any of those things need to change? Are there opportunities to take advantage of now, rather than later?
Tip 3 – Audit processes regularly
Auditing processes is one of many ways accountants can ensure that bookkeeping procedures are being performed efficiently. By checking in on a regular basis, you’ll be able to make sure that your staff members are accurately recording transactions, balancing accounts and keeping cash flow on track. Even seemingly small details can have a major impact when it comes to your bottom line; catching errors early can help prevent any unnecessary expenses down the road.
Tip 4 – Invest in technology
When you’re still in startup mode, it can be easy to get behind on bookkeeping—paperwork is an inevitable part of running a business, but it doesn’t have to take up your whole day. Invest in some basic technology like accounting software or an app so you can focus on growth and revenue, not paperwork. This way you can ensure that your bookkeeping stays up-to-date without neglecting your core responsibilities.
Tip 5 – Use cloud-based applications
Cloud-based accounting software allows you to access your accounts wherever you are, and keeps you in sync with your bookkeeper or accountant. It also means that if someone else is processing your bookkeeping while you’re not able to be physically present at your place of business, they can still log in and update transactions. It’s a great way to keep everyone on the same page, regardless of their location.
Tip 6 – Ask for help if you need it
It’s not easy to keep track of bookkeeping if you have a large business, and many small businesses run into difficulties when it comes to accounting. If your business is growing or you’re in a difficult financial position and need help with your bookkeeping practises, there are professionals out there who can help. Contact an Institute of Chartered Accountants near Porthmadog for more information about hiring accountants.