5 Most Important Factors for a Good Small Business Bookkeeping System

Important Factors for Small Business Bookkeeping

Many business owners groan when they talk about small business bookkeeping. Are you one of those people that think about bookkeeping as a necessary evil? Putting the right bookkeeping system in place will make a big difference to simplify your process and decrease your stress.

These are five things that need to be implemented to improve your bookkeeping system:

Billing Follow-Up

Invoices can slip through the cracks, resulting in a situation where you don’t get paid for work that was completed. Track your billing and invoices, and have a set schedule in place to follow up with clients who haven’t paid. You might consider sending a second invoice or taking some time to make a phone call to ask for payment.

Manage Cash Flow

If money is coming in, do you quickly spend it all? Bills and payments can be seasonal at times, making it harder to stay up with payments during certain times of the year. Avoid cash flow problems by setting aside some cash in a separate account. This money can be used as an “emergency fund” to pay for unexpected expenses when they pop up.

Organized Filing System

Make sure that everything has a place so that costs and expenses aren’t overlooked when it comes time to file your taxes. The right organizational system will make it easier to track costs, helping you to leverage tax benefits as much as possible.

Checks and Balances

Don’t rely only on your bank statements for information! Keeping a record of transactions, such as business deposits, is a good way to have checkpoints in place. Document the deposits to be sure that you are accurately tracking income.

Be Prepared in Advance

Procrastination can cause many problems, especially if you wait until tax time before you prepare your financial details. Keep up with the bookkeeping system throughout the year, which will help by making tax time easier than ever. Also, make sure that you prepare for tax payments by setting aside the money in a separate account.

Talk with a Professional Bookkeeping Service

Are you ready to improve your bookkeeping system and reduce your stress? Then right now is a great time to talk with an experienced bookkeeping team. At Easier Bookkeeping, we offer all types of small business bookkeeping services. Together, we will plan the services that best meet your needs so that you can be prepared for the future growth of your company: (888) 620-0770

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