5 Simple Bookkeeping Strategies for Business Owners
Blog post #101
Five simple bookkeeping strategies for business owners.
As a business owner, especially when operating as a solopreneur, keeping good financial records is a must.
It is not only an IRS requirement, but it’s the only way to guarantee you are making the best decisions for your business.
Staying on top of your bookkeeping is the best solution to this, and although yes, I know, it can be a menacing task, having the right strategy to execute will help it become seamless.
In this post I’m giving you 5 simple, yet effective strategies to ensure your bookkeeping processes run smoothly, efficiently and allow you to properly manage your business performance now and for the future.
Set a weekly date for your bookkeeping tasks. Choose a day each week when you will record transactions, review banking activity, send out invoices (and review any outstanding ones), and track expenses.
Make sure it’s the same day of the week though. Consistency is key for it becoming a habit. This way it’s no longer a chore for you, but a part of your business operations.
You should also implement an end of month process. This ensures all financial transactions have been accounted for, help you plan for the month ahead, and stay prepared for quarterly and year end tax filings.
Reconcile your accounts each month. This will ensure accuracy of your accounts, financials, and reporting. You will also have better insight into your business patterns and what you need to do to keep your finances in order.
This should be a part of your month end process.
Review reporting regularly. Analyzing your reports helps you uncover any issues as they happen, provide information needed to make informed decisions like cutting costs and increasing revenue. It also keeps you on track for reaching goals.
You should set time for monthly and quarterly reviews, to ensure that your finances are always accurate, current, and organized. This should also be a part of your month end process.
Keep watch of your cash flow. Consistent tracking of your revenue and spending gives you clarity of your money trends. This allows you to better manage your money for savings, tax obligations, operating expenses, budgets and the most important of course…PAYING YOURSELF!!
Hire a bookkeeping professional. It’s no secret that finances usually get pushed to the back burner when you’re busy operating & growing your business. And if your business isn't bookkeeping, it's just not something you usually want to do.
Hiring a professional is the best way to keep you on top of all the strategies mentioned above and even more.
Managing your finances is, if not THE most, one of the most important parts of running your business successfully. Having well-structured bookkeeping strategies and processes is key in keeping track of and continually improving it’s overall performance.
Best & Savviness Always,
Bria G