If you reflect on your bookkeeping processes, you will likely arrive at a few areas that need improvement. There are things you can do now to make bookkeeping easier. Things to consider are:
Automate: Use cloud-based software, such as QuickBooks Online, to automate your banking. Connect your bank and credit card accounts to QuickBooks. Set up rules in the bank feed to keep the data entry to a minimum. You will have accurate, up-to-the-minute records, and critical financial data is backed up safely offsite.
Don’t Scramble: Set aside enough time each week to stay up to date. Pick the same time and day of the week. This way if you miss a week, you won’t have much to catch up.
Review Automatic Payments: You may have set up automatic renewals and subscriptions in the past you no longer need. Reviewing those is a fast exercise that can save you money. Pull an Expenses by Vendor Summary report in QuickBooks to determine if there are any services you can cancel.
Perform a Quick Audit: Go over your books monthly to avoid headaches and catch errors. This is a good time to look at receivables, payables, trends, etc. A Quick Audit checklist can be found here.
Keep Records: With the frequency of changes to the tax code, make sure you maintain detailed records of business expenses. You can scan and digitize receipts and recover them when needed. A dedicated credit card for business needs is a good idea, too.
Taxes: Make sure tax payments are made by the stated deadlines to avoid penalties.
Get Help: Spend time growing your business, not worrying about daily finances. Hiring an outside bookkeeper saves you time and money.
There's also a few bookkeeping mistakes you should avoid! Read about those here.
If you need assistance implementing any of these processes, call us at 216-333-1303 or click below.
