If you recently started your own business and you’re struggling to understand the complexities of bookkeeping for your business, you’re not alone. Navigating the bookkeeping needs of your company is overwhelming for many business owners, particularly those that are new to the entrepreneurial scene.
With a little knowledge and a lot of perseverance, you can handle your business bookkeeping affairs with confidence. To get you started, we have compiled our top four bookkeeping tips for small business owners. Read on to learn more.
1. Keep all personal and business accounts separate
Mixing up your personal finances with your business finances is one of the biggest bookkeeping blunders you can make. You likely tossed some of your personal funds into your business to get it going, but these accounts still need to be completely separate to avoid confusion and costly mistakes.
Make sure you open a business bank account specifically for your company and apply for a company credit card as well. You should also track business use of any of your personal items to keep everything as clear as possible.
2. Stay on top of your invoicing
As a small business owner, it’s likely that you’re often issuing invoices to be paid for your services rendered. Keeping track of invoicing can be tedious and time-consuming, but your invoices ultimately represent your livelihood. As a result, it’s essential that you manage them in an organised fashion.
Issue invoices on a regular schedule and through the same channel, whether through a software program or simply via email. You should also get into the habit of sending reminders and follow-up messages to boost your chances of getting paid on time. Once invoices are paid, keep a detailed record of the amount and dates that they were paid.
3. Keep all your receipts
When it comes to bookkeeping for your small business, documentation is extremely salient. Having a paper trail helps you maintain your organisation and streamline your bookkeeping practices. Plus, keeping documentation of certain purchases can help you claim tax back on certain goods and services. With that in mind, be sure to keep all the receipts of goods and services you procured for your company.
Deductions for small businesses can vary but some examples of such purchases include (but are not limited to):
- Dinner meetings with clients
- Software programs (such as the Microsoft Office suite, Photoshop, accounting programs, etc.)
- Office rent
- Ad campaigns
- Travel expenses (such as gas, hotel stays, etc.)
4. Don’t hesitate to reach out for help
If you’re still struggling or you don’t have the time to do your own bookkeeping, there’s no shame in outsourcing to a professional. In fact, there are some benefits to hiring a seasoned bookkeeping organisation like Geekbooks for your small business.
For one, the process could be made far more efficient because these experts perform bookkeeping for a living. They know how to overcome common hurdles and what information to include on the relevant paperwork. Knowing that your finances are in experienced hands will give you peace of mind, which you can’t put a price on. Acquiring the services of a high-quality bookkeeper could be one of the best investments you ever make for your company.
While bookkeeping can be tricky, especially for new entrepreneurs, there are steps you can take to ease the process. By following these four simple tips, you’ll enjoy a smooth and seamless bookkeeping experience.
