7 Best Bookkeeping Tips for Small Business Owners

Good bookkeeping is critical for every small business owner. Here are 7 bookkeeping tips you can use to ensure that your records are accurate and up-to-date.

Tips For Good Bookkeeping

There are 7 steps you can follow for good bookkeeping to ensure that your accounts are up-to-date and that your business continues to grow.

1. Separate business and personal finances. Your business expenses and personal expenses should be kept separate at all times to make your bookkeeping easier. A corporation and LLC usually need a separate business account by law so opening a separate business account will also help you to avoid legal issues. Open a bank account for your business to help you to stick to your budget for your business, and to keep your personal and business finances in order.
2. Organization is the key. Keep your records organized to ensure that you won’t waste time looking for important information. Business invoices and receipts are the most important documents when it comes to tax season. Place these in a secure and safe cabinet. Organize your cupboards and files and label everything you need so you can find them easily and quickly. This is true for electronic copies as well.
3. Try automation. Automation can help you to save money and time. It is also more secure than traditional filing methods. Accounting software eliminates the need for spreadsheets and time-consuming calculations. Look for software that is secure and affordable for your business.
4. Set reminders. It is easy to lose track of time and deadlines. Setting reminders will help you to remember what you need to remember, what needs to be filed around tax season. You can use apps for reminders or a digital calendar.
5. Leave an audit trail. An audit trace can help you to recover important documents. Back up your records and keep all documents to verify purchases and ensure invoices were paid.
6. Keep a record of expenses. Keep a record of your expenses such as your utilities or supplies so that you can easily track your budget and take unexpected expenses into account.
7. Make bookkeeping your priority. A small business owner has a lot to do but bookkeeping should come first. Prioritize bookkeeping to track your finances and hire people for help if needed. If you don’t prioritize bookkeeping, you’ll find yourself with a lot of work down the line.

The Women’s Business Center of Northern Virginia at Community Business Partnership can help you to gain the skills needed for bookkeeping. For bookkeeping tips and other financial advice, contact us today!

We invite you to attend our free class on Financial Wellness of Female Entrepreneurs on April 20th at 11am. Register at: https://cbponline.org/class/financial-wellness-for-female-entrepreneurs-2022/