There are so many different aspects to bookkeeping, that maintaining them all can feel like a constant challenge for smaller businesses. But, however time consuming and challenging it may be, bookkeeping is a vital element of any successful business, big or small, and hence must be taken care of comprehensively.
Tracking your small businesses’ financial records accurately offers myriad rewards, and for those who don’t have the time or wherewithal to do this, bookkeeping services in Surrey can prove to be a lifeline.
Should you plan to tackle your own bookkeeping however, here is a basic checklist that when followed, should help you make more informed decisions for the overall financial benefit and future of your company:
Tasks to be completed on a daily and weekly basis
Vital for maintaining financial records that are accurate, daily and weekly bookkeeping tasks should never be skipped.
On a daily basis, make a record of all sales and income, keep hold of invoices and receipts, and check bank transactions to make sure everything tallies. Doing so helps ensure that no earnings go amiss.
On a weekly basis, review all invoices that haven’t yet been paid, update all records of expenses, and take the time to reconcile your accounts. Doing so will help you track what money is coming out each week, and what money is coming in.
Tasks to be completed on a monthly basis
Monthly bookkeeping tasks are crucial for giving you access to your businesses bigger financial picture, and should include reviewing financial statements, organizing bills and receipts, and making sure that all records related to payroll are accurate. Doing all of this will help keep you healthy financially, and prepare you for any challenges that may arise.
Tips and tricks
Try out the following tips to make bookkeeping even more efficient:
- Use accounting software
Drake Tax Software for example, can help make many processes automated and limit errors.
- Keep business and personal finances separate
Always use different bank accounts for both.
- Set aside time for bookkeeping
Dedicate a certain period of time each week to tackling tasks associated with bookkeeping.
- Practice meticulous record-keeping
It’s really important to save either (or both) digital or physical copies of every invoice, bill and receipt.
- Consider seeking professional help
Hiring a qualified local bookkeeper or CPA to handle some, or all of your bookkeeping requirements can be a cost-effective and highly convenient way to manage all bookkeeping tasks and stay on top of your company’s finances.
While many small business owners mistakenly believe that paying for professional help is not a sound investment, the opposite is actually true. They’ll take care of all your mundane, routine (but no less essential) tasks with precision, leaving you free to pursue other, potentially higher value business avenues.
They’ll also give you insights into the financial health of your business that you might not otherwise have been aware of, and which can help you make decisions related to its future that are well informed and based on facts, not assumptions or predictions.
Although it can definitely be time consuming, bookkeeping for small businesses can be made easier either by pursuing services providingbookkeeping in Surrey, or by tackling it yourself with help from the above checklist and tips. Whatever decision you ultimately make, never underestimate the importance of high quality bookkeeping for the overall health of your business.