Eric Sheldon CPA, PC

7 Bookkeeping Tips for Small Business Owners

As a small business owner, you have to make sure that your books are in order and that you can follow the laws governing your business. In order to do so, you need to have a good overview of your revenue and expenses. Proper bookkeeping will save you time, nerves, and money.

Tips to Keep Your Books In Order

There are a few tips to ensure that your bookkeeping is in order.

  1. Make a habit of closing your books regularly and recording your financial transactions. You can do this weekly or monthly.
  2. Balance your books at least quarterly, or more. If you’re a small business owner, it’s best to do it before you open or close for the day. This will ensure that you’re fresh and engaged when you’re reviewing the books. This will also give you an idea of how profitable you are and how far you’ve come.
  3. Keep track of your receivable due dates. Late payments can dry up your business’s cash flow quickly. It’s important to track your accounts receivables and take action to get them paid on time. A good way to do this is to contact late-paying customers. Ask them how their payment status is, and if they’re experiencing any financial hardships.
  4. Hire a professional. While hiring a bookkeeper can be expensive, it can be a smart investment in your business. It will free up your valuable time and save you money. Plus, it’s an investment in your business’s future.
  5. Backup your records. You don’t want to be scrambling at tax time. The most secure way to do this is with a cloud-based storage system. It allows secure offsite storage, which is especially important if you rely on paper documents. It also allows authorized company employees to access your records from any digital device.
  6. Keep accurate records. It is important to save a portion of your profits and keep an emergency fund for unexpected expenses. This way, you can avoid drowning in debt, and your business will be much more profitable in the long run.
  7. Take an active interest. Even if you have what appears to be a good bookkeeper, take time to learn the details yourself. It’s not fair to them or your business if you end up in dire financial strife due to incompetence or fraud by the bookkeeper (it does happen).

Why You Need A Bookkeeper

Bookkeeping is an essential part of running a successful small business. It helps you understand your business’ finances, allowing you to make informed decisions and plan for the future. Accurate bookkeeping also protects your business. Without clean financial records, your company could face lawsuits over financial errors, and you may even be subject to fraud.

There are many ways to make bookkeeping easier and more efficient, but you can’t overlook the value of the right bookkeeping service.

Using outsourced bookkeeping services can be a smart move if you want to get your bookkeeping done quickly and accurately. These services are cost-effective and flexible, and you’ll get a thorough set of reports. Hiring a professional bookkeeper can help you avoid late payments, bounced checks, and figures that don’t add up.

We can help. Give us a call for bookkeeping assistance.

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About the Author

Eric Sheldon

Eric Sheldon

Eric Sheldon is a certified public accountant with more than 25 years of experience in a wide variety of industries. He's the owner/operator of Eric Sheldon CPA, PC, an accounting firm that specializes in providing tax strategy and preparation, accounting, and bookkeeping services to individuals and small business owners.

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