bookkeeping tips for small businesses

Bookkeeping is the backbone of your accounting and financial systems, and can impact the growth and success of your small business. It encompasses a variety of day-to-day tasks, including basic data entry, categorizing transactions, managing accounts receivable and running payroll. QuickBooks accounting software can help you ease into the accrual method of accounting by ensuring that your records are accurate, based on information from your credit card or payment apps. If you plan on growing your business in the future, you’ll probably want to get used to using this method. By recording cash transactions when the money actually changes hands, you can simply cross-reference your bank statements with your bookkeeping records to ensure accuracy.

Our comprehensive bookkeeping services are designed to cover all your business needs, ensuring accuracy, compliance, and strategic financial insights. With our team of seasoned professionals, you’ll gain a partner dedicated to your financial success. Contact us today to upgrade your financial management and free up time to focus on running your business.

What are some of the challenges of small business bookkeeping?

Using the data you gain from keeping a ledger, your next step will be to generate and prepare financial reports for analysis. The major reports to include are the profit and loss, the balance sheet, and a cash flow analysis. Additionally, the aged accounts receivables and aged accounts payables reports are helpful in knowing which customers have not paid and which vendors are yet to be paid. These reports will help you gain greater insights into the financial health of your small business.

When choosing an accountant, interview several candidates and go over your accounting needs and expectations with each one. Choose the accountant that can offer you the best working relationship. The steps below will walk you through actionable steps you can take to manage your small business’s finances effectively. Opening a small business in Florida can be a rewarding journey filled with opportunities and challenges. By conducting thorough research, planning diligently, and leveraging available resources, you can navigate the complexities of entrepreneurship and build a thriving business in the Sunshine State.

Bookkeeping Tips for Small Businesses

Introduce one new system at a time and give the employees time to learn them and get into the habit of completing them easily, before introducing the next one. You
need to take an active interest in the financial aspects of your
business. There is nothing worse than having a job done by someone, like a plumber, and then waiting for months for an invoice.

For small business owners, space is an invaluable asset, as it can be utilized to store or display products or provide additional seating for customers. To separate your business’s finances from your personal money, open a separate bank account for your business. This helps you file income taxes accurately as you can deduct business expenses on your tax return. Even if you’re not the one doing the bookkeeping and payroll, it’s important for you to block out time to review the accounting records and financial statements with your professional bookkeeper. It keeps you up to speed with how the business is performing and growing. Your business should have its own separate business account and business credit card to handle financial transactions.

Self-managed bookkeeping

Less time bookkeeping means more time focusing on growing your business. In many cases, you can also integrate your invoices with bookkeeping software to produce financial records and statements that make managing your bookkeeping process smoother. If you’re still accepting cash transactions, there’s a way to track that with Lendio’s software bookkeeping tips for small businesses too. Psst—to stay organized and make recording easier, remember to keep your personal finances and your business finances separate. Accounting software can streamline your bookkeeping process and make your financial management more efficient. It’s useful for business owners looking to save time and avoid common accounting errors.

bookkeeping tips for small businesses

But implementing too many new systems close together can be really overwhelming for employees and exhausting for the business owner/manager. Make sure you file your payroll returns on time and make the payments on time. Filing or paying late can incur fines for your business (a real waste of your business funds). With each pay run, make sure you set aside savings to cover the payroll tax from the employee’s pay. Below is a list of the most common tasks that are a part of the bookkeeping process. You can avoid this scenario by being pro-active about keeping your bookkeeping system up to date and producing reports at least once a month.