How to Make the Most Out of Your Small Business’ Bookkeeping

Gone are the days when bookkeeping used to be something that most business owners dreaded doing because it involved managing all aspects of their finances. Without the help of an accountant, it used to be a struggle that could potentially cause the downfall of a business.

Due to the advancements in technology and the birth of programs and software made for accounting, life has just become a whole much better for entrepreneurs. However, if you own a small company, you can’t go lax just because of every digital solution available. You will still need to ensure your bookkeeping is intact just as much as the big corporations out there.  

In a nutshell, bookkeeping is the method of keeping track of the financial records of your business. It can be in the form of your clients’ billings, your receipts and invoices from your transactions, payments for your suppliers, and your employees’ payrolls. If you want to know how to improve your bookkeeping, read on below.

Utilize Advanced Software

Since you’re living in modern times, you should also learn to go with the trends, especially if it will benefit your small business in the long run. You can begin by incorporating a cloud-based accounting software to handle your bookkeeping needs effectively.

Intuit is a company that provides small firms with accounting tools to make work easier, including the software QuickBooks. With a cloud storage, you gain access to your financial accounts in a timely manner—so even when you’re on-the-go, you can still work using any mobile device!

Depending on the accounting software you choose, you can make use of a feature that allows multiple users to manage the system simultaneously and improve productivity. With a modern bookkeeping software, you can also rely on ready-made templates for your invoices and other records to guarantee your small business is right on track.

Stick to One Accounting Method

Your business should apply an accounting method that works best to ensure all your data is accurate and up-to-date. You can choose between two types of procedures—the cash method and the accrual method.

With the cash method, you get to take note of your business’ transactions when you receive or offer payments. On the other hand, the accrual method allows you to record transactions once you earn money, even when it hasn’t been offered as payment yet.

To ensure your company maintains its consistency with handling finances, it would help if you learned to use one particular accounting method in your bookkeeping. You can seek the aid of a bookkeeper to tell you which way suits your small business best. 

Remember That Everyone Should Play Their Part

Your company’s bookkeeping shouldn’t be handled by an accountant alone because the rest of your employees also have shoes to fill in to support the success of your firm. Everyone can make an effort to make each other’s tasks easier by following certain procedures.

It can be as simple as telling your employees not to forget to turn in receipts from recent business trips. When employees come to work and leave the office, they should also learn how to track their time accordingly to give the bookkeeper a quicker way of producing the payrolls.

Moreover, depending on how well your small business is doing, it’s essential that your company’s bookkeeping shouldn’t be handled by one person alone. You can hire a Certified Public Accountant to reduce errors and guarantee your finances are well looked after.

Conclusion

Small businesses and start-up companies must learn to manage their financial records even during the beginning of your career. It will ensure that your journey is stable and consistent to improve your chances of growing your business much faster. You can make the most out of your bookkeeping services by utilizing advanced software, applying one accounting method, and appointing your employees to help make your financial system organized and well-structured. That way, your business can continue to run as smoothly as expected.

Are you looking for small business bookkeeping services in New York for your growing company? Totally Booked offers bookkeeping solutions, including accounts payable, accounts receivable, budgeting, payroll, app integrations, sales tax, and more. Get in touch with us today to book an appointment!