Do’s and Don’ts of Handling your Business’s Bookkeeping
15/09/2015 17:29
As a business owner there will be tasks that aren’t exactly the most exciting thing to be doing. Well actually there will be plenty of tasks that aren’t very exciting, but this is what you signed up for when you decided to become a business owner. It’s quite often the case that the most mundane tasks are the most important. One of these tasks is bookkeeping, and it’s something you should make sure is done efficiently. Here are some of the do’s and don’ts of handling your business’s bookkeeping.
DO
Look after your paperwork
If you’re one of those people who have paperwork lying around all over the place, then you might want to have a tidy up. All you will be doing is making your bookkeeping ten times harder, and a scavenger hunt for one tiny receipt is never fun. Use a separate area like a box or drawer to keep your paperwork safe.
Get into a routine
Put some time aside each week, and get into the habit of using this time to go over your books. Once you get into a routine you will find it easier to stay on top of things.
Keep petty cash receipts
This is one of the most common problems with businesses today, people tend to forget about petty cash and it will make life more difficult for you when you balance your books. Anytime you use petty cash make sure you keep a receipt, even if it’s just a quick trip to the shops.
Make each of your invoices unique
Bookkeeping will be an absolute nightmare if your invoices aren’t in order. Make sure you’re using a system so that each invoice is numbered uniquely. Not only will this keep your books in order, but it will also make a specific invoice easier to find if you need it for any reason.
Hire a qualified bookkeeper
A lot of business owners are reluctant to hire a professional bookkeeper, and prefer to keep everything in house. Hiring a bookkeeper will cost you money, but it will pay for itself in the long run. Whilst a professional handles your books efficiently you can concentrate on other important tasks, making your business run more effectively as a whole.
DON’T
Over complicate your paperwork
You can use a relatively basic system with your paperwork, as anything overly complicated will just make it more difficult to understand. If it’s too complicated to understand then it could cause you problems in the future, as it may look suspicious.
Throw away what could be important
This might sound like a bit of a no brainer, but it happens more than you would think. Make sure you keep hold of all receipts and paperwork from the bank. Throwing it away or simply misplacing it could prove to be troublesome in the future, especially if that piece of paper turns out to be important.
Get behind with your bookkeeping
As it says above in the do’s section, make sure you get into some sort of routine, but it’s probably best you hear it twice so you don’t forget. Don’t get behind with your bookkeeping; catching up with forgotten paperwork won’t be fun. If you find it difficult to stay on top of your bookkeeping, then this is where a professional could prove to be a useful investment.
To be efficient in business you need to be organised. At the time bookkeeping may seem dull and boring, but knowing your books are in order will give you the peace of mind to be able to concentrate on other aspects of running a business. Often aspects other business owners begin to fall short on purely because their bookkeeping has been slack, or organised poorly.