According to the SBA (Small Business Administration), there are over 30 million small businesses in the US. That means that more than 99% of companies in the US are considered “small businesses.” Despite that amount, managing a small business is not always easy.
Many things are involved when managing any business, even more, when it’s small. Owners must study business bookkeeping to be able to manage their business successfully. Today we will take a glance at some bookkeeping tips that will help any small business owner.
1. Reduce Paper Usage
Research shows that the average small business will spend more than $60,000 on paper every year. Decreasing the amount of paper you use is one of the best bookkeeping tips for businesses you can. Not only will you save cash and time but also the environment, a win-win situation.
2. Review Your Finances Frequently
The most common bookkeeping for business tips is that of reviewing your finances frequently. Even if you have spent a large amount of money on reliable software to manage your accounts, that software requires some human management and is still subject to human failure. While reviewing your books isn’t the most exciting assignment, the peace of mind that comes with having proper records cannot be emphasized.
The most reliable way to stay up to date with your bookkeeping is to keep a strict schedule and thoroughly review your company’s financials at most every other week. Then at least, twice each month, you should schedule about one to three hours to go over your company’s withdrawals, deposits, purchases, transfers, and other vital items.
3. Outsource Payroll
Perhaps a lesser-known business bookkeeping tip is that of outsourcing some aspects of your business. And payroll is the perfect candidate as it can be quite a headache to keep up to date. Many payroll outsourcing companies can use your payroll software or might even use more efficient ones.
4. Choose the Best Bookkeeping Software
You can’t manage a small business bookkeeping without the proper software. Of course, Excel or OpenOffice Spreadsheet make good supporting programs for bookkeeping. But you will want to invest a fair amount in the right software, not only will it save you future headaches but also keep everything tidy.
5. Have Business and Personal Banking Separate
Often the business bookkeeping tip that is most forgotten is that of keeping business and personal accounts separate. Experts advise having different bank and credit card accounts used solely for business, even if you are a freelancer. By excluding all private transactions from your business statements, you will significantly reduce the number of transactions your accountant must classify and arrange.
Make Your Small Business Grow With These Bookkeeping Tips
Bookkeeping is not an easy or enjoyable task, but it is necessary if you want to grow. By following these bookkeeping tips, you will manage your small business efficiently and effectively. So don’t delay any longer and start working on your bookkeeping today.
If you found the information on this article useful, then check out our other business-related posts. Without a doubt, you’ll find them as informative as this one.