Bookkeeping Tips For Small Business

Small business owners have a hard time with keeping tabs the many aspects of their business. Where larger companies have the freedom of hiring for individual jobs, most small business owners are running a small crew that have to juggle multiple responsibilities. This can lead to certain important business elements being neglected, potentially costing you thousands. When it comes to bookkeeping, setting up policies and procedures can be helpful in avoiding or correcting these mistakes. We’ve compiled a few bookkeeping tips for you to implement into your small business practices.

Separate Business & Personal Finance

This may seem simple, but when these two get mixed together, accounting can become a nightmare. If your records only contain business expenses, it will make tax season much easier to deal with. Keep your records organized and divided. To find out what accounts you need to keep organized, schedule your free consultation with us!

Plan For Taxes & Major Expenses

When your small business is streamlined and functioning efficiently, business owners are able to view their business in a more accurate light; giving a clear picture of how their business is performing financially. This information allows owners to plan for large purchases or expenses in the future. 

Keeping accurate, up-to-date financial information makes sudden expenses less of a burden. Planning for taxes by setting back extra money helps small business owners relax a little bit more during tax season. Knowing you have a financial cushion gives you the freedom to focus on growing and bettering your business.

Create Strong Financial Habits

Going back and reconciling months of past transactions can be tedious and often lead to accounting mistakes. Creating consistent, financial habits can help alleviate some of the problems and frustrations facing small business owners. 

Set a specific day every week to look over your finances and ensure everything is in order. Setting a day every month to check invoices, accounts receivable, and reconcile accounts clears up time during the month and eases the stress of managing often associated with managing finances.

When used correctly, these tips can help save small business owners time and money, allowing them to invest more in what they love; their business! Implementing these tips can take time and put additional burden on owners, so Executive Resources FSI offers bookkeeping services to fit any business’s needs. Want to learn more about how you can save money and time? Fill out our free contact form below to get your free consultation started!

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