Bookkeeping can be a major struggle for business owners. It represents a daunting and unfamiliar task on top of the responsibilities of running the business itself. By streamlining it you can reduce stress and save time that can be better spent elsewhere. With our advice, managing your business’ finances can become manageable, practical, and extremely beneficial.
Check up on your books regularly
When you are already running a business, bookkeeping feels like a chore that can be pushed aside. However, the longer you leave between examining your books, the more work you create for yourself. By setting time aside each week you can keep an eye on the day-to-day financial health of the company and verify that your current trajectory will meet your goals in line with your business plan. Checking in regularly also means that if there are any issues, you can catch them early before they compound. Rectifying problems might simply mean small adjustments rather than major course corrections after many months of neglecting the books. Set a time for bookkeeping each week you know you will be free and productive then stick with it as much as possible. You’ll be surprised at the difference it makes.
Separate business and personal accounts
As your business begins to get off the ground, it will be a highly personal endeavour. For some time you may be the only employee. This can lead business owners to intertwine their personal and professional finances. Untangling these at a later date can be extremely difficult the larger the company grows. If you haven’t already, then it is vital that you separate the two as quickly as possible. A separate business bank account and credit card will make differentiating expenses so much easier when it comes to do your bookkeeping. It will also help you take an accurate reading of both your professional and personal financial situations and maintain a healthy work-life balance.
Use accounting software
There are now a range of high-quality accounting software available to businesses of any size. Integrating it into your business is a great way to securely and centrally store all of your business’ financial information. They also offer a range of additional features to help you track expenses, invoices, VAT returns, and more. If getting to grips with a new piece of software sounds daunting, a professional accountant can help you get everything set up properly.
Keep detailed records
One of the keys to reducing the time and energy you spend on your books is keeping detailed and consistent records. Use a business credit card for expenses wherever possible to ensure that everything can be tracked through one avenue. Make sure any receipts are kept and stored securely. If possible, you should look to digitise as many of your records as you can. This will cut down on storage space and reduce the risk that they can be lost or damaged. With digital evidence of your financial transactions you will be able to efficiently track the progress of your business and streamline your bookkeeping.
Track your invoices
While it seems simple, many business owners are so dedicated to providing their services, that collecting payments can fall by the wayside. However, if your income relies on these invoices then keeping track of who has paid how much, for what, and when will be essential. Clearly outline realistic deadlines for your clients, ideally in the same document that you are sending the invoice in. If you have set up any accounting software, use it to send automated reminders for late payments rather than chasing them yourself.
If your bookkeeping is taking up far too much of your time, why not have a professional take care of it for you? Contact Omer & Company Accountants. We are a team of business accountants that specialise in managing your business’ bookkeeping to help you thrive. To get in touch, call 020 8850 0700 or send an email to email@example.com.