Do you postpone your bookkeeping because you don’t like it or have the time? You’re a busy business owner with many priorities and rarely enough time, so bookkeeping may fall to the bottom of the to-do list until tax time. After all, “The ultimate inspiration is the deadline” ~ Nolan Bushnell.
Reviewing and analyzing the financial performance of your business throughout the year is important to help you manage and grow your business so here are some tips to make bookkeeping easier for you.
- choose the right accounting software. There are many options and versions. QuickBooks, Freshbooks, Sage, Xero, and Wave are the commonly used options. The right software will allow you to quickly and easily enter your information, reconcile accounts and review financial statements.
- set up bank feeds. These pull your bank transactions into your accounting software enabling you to quickly record your transactions. This process is not only efficient but it also eliminates errors from manually inputting numbers.
- block off some time monthly. This will keep you up-to-date. It’s typically more efficient to perform tasks in chunks so a few hours of focused time should get all your bookkeeping done for the month.
- give your paper a home and be systematic. Organize your receipts in folders or large envelopes by month or type (i.e., supplies, advertising, meals & entertainment). Also consider scanning your receipts. Scanning can accomplish two things. Firstly, receipts can fade over time so this preserves your documentation in the event of an audit. Secondly, to keep things really organized you can attach an image of the receipt to the corresponding transaction in your accounting software.
If you follow these bookkeeping recommendations but still struggle to find the time to get it done, consider outsourcing some, or all, of the bookkeeping for your business. Get in touch to chat about what we can do to help.