Don’t let bad small business bookkeeping and accounting affect the health of your business.
With so many small business making bookkeeping and accounting errors we have listed some of the top few blunders to make sure that this doesn’t happen to your business.
Many people push booking to one side, choosing to prioritise more fun tasks, the longer you leave it the harder it is to get done. Make sure you record everything and categorise it properly in your accounts, this will help you have a more reliable and accurate vision of your companies health. Try setting aside an hour or so a week so your book keeping doesn’t become a bigger task than needed. Include any small or large payments from customers and clients so you will know how your company is doing on a monthly basis. Don’ t let bad book keeping and accounting affect the health of your business. With so many small business making book keeping and accounting errors we have listed some of the top few blunders to make sure that this doesn’t happen to your business..
Blunder Number 2 – Failing to reconcile books and accounts
It is important to make sure that your books and bank account match, make sure you reconcile your books with your bank account regularly. Sometimes small costs go missing or expenses forgotten about, reconciling your accounts monthly can help you track your financial situation. Try using a simple system to make it easy for your to input your data efficiently, this will make your life easier at the end of the tax year.
Blunder Number 3 – Don’t be afraid to ask for help, make sure you communicate.
With small businesses often people feel like they need to do it all. Not communicating regularly with your book keeper can mean that they are unaware of important information. Mistakes if not dealt with can cause serious problems and extra work down the line. Keeping a record of all transactions will help monitor your spending and income.
Blunder Number 4 – Don’t forget to set budgets for projects
Often with small businesses you will be working with limited funds . You will need to plan how much a project is going to cost and how long it is going to take, you will need a strategy to avoid over spending. If you don’t plan in costs its quite likely you may go over budget which can effect your return.
Blunder Number 5 – Monitoring Profit and Cash Flow Properly
There is a big difference in how profit and cash flow measure money. Try not to plan profit before a project is complete, how do you know that it is going to go to time? How do you know that more money will not need to be spent? By doing this you may give yourself an incorrect idea of how your company is doing.