6 Reminders When Doing Your Small Business Bookkeeping
The truth is, somebody has to do the bookkeeping for your small business, or else it won’t get done. If you have made the decision to do the bookkeeping yourself, it can be overwhelming until you get the hang of it. We have six reminders for you when it comes to getting your books done accurately and efficiently.
- Make sure all employees are classified correctly.
Are they part-time, full-time, contract, or a combination of the three? Figure it out now so you can avoid problems later (we’re talking potential costly mistakes come tax time).
2. Understand what your bookkeeping is telling you.
When you run monthly reports, it’s vital to be able to read them. Making decisions blindly can lead to debt or bankruptcy. Invest some time in learning how to complete and analyze your books correctly.
3. Track performance with plans.
Use your reports to look at your progress. Reports track performance. Look not just at what your business has done, but look at where it is going.
4. Keep business and personal finances separate.
Things get messy when you mix the two. Avoid this by opening a business bank account and using a business credit card.
5. Pay attention to tax deadlines.
Look ahead to when you pay taxes and set aside money for that purpose. Look into finding the IRS tax calendar for the sake of making deadlines and avoiding fines.
6. Double-check your numbers, then double-check again.
Mistakes happen. Look over your numbers more than once just to ensure you have accurate data. Sometimes fingers slip or keys stick.
If you run into issues while working on your books, you can always contact us for assistance!