Don’t let your bookkeeping get away from you. We compiled some simple and easy ways for you to tackle your books regularly. When it comes to keeping up with your bookkeeping, be repetitive and disciplined with completing each task until it becomes a habit and part of your every day routine.
Consistency is key in most areas of life, but especially when it comes to your books. The number one recommendation we have for keeping up with your books is to be consistent with it. Sit down every single day to ensure the transactions for the day have been logged with details included and receipts attached. By simply working on your books a little bit every day, this will help greatly.
Once you set up your books properly, it becomes time to keep up with the cash that flows in and out of your business. When we say “keep up” with your books, we actually mean that you need to trace each and every step. Business can move quickly and your bookkeeping needs to catch it all. But, what exactly should you be keeping up with?
This should go without saying! You must keep up with logging where your money goes, as well as where it comes from. In simple terms: your company’s sales and purchases. A single missing entry will throw your books off balance entirely. Consider downloading the mobile app so you can add entries on-the-go, setting up journal entry automation, and reconciling on a weekly basis.
Are you curious about bookkeeping? Are you considering being a bookkeeper? There are plenty of myths people believe when it comes to being a bookkeeper that we want to bust. Before you pursue becoming a bookkeeper, let’s set some things straight first!
A degree is not required.
To be a bookkeeper, there is not a required degree or “major” to study. Anyone can become a bookkeeper if they have the right program, the right training, and a self-motivation to learn and execute. There are various trainings and classes available, so do your research before pursuing the first course you find.
Certifications put you ahead.
Being certified in your specific bookkeeping software helps you stand o
Bookkeeping is an act of repetition. You must keep up with specific tasks on a weekly, monthly, quarterly, and annual basis. A company’s “bigger picture” is important, but can’t be seen, or even accomplished, without maintaining the day-to-day minute details of your bookkeeping, which helps you paint a clearer, more accurate picture over time. What should you be doing on a weekly basis to keep up with your bookkeeping?
Issue invoices to clients/customers.
To stay on top of your Accounts Receivable, make sure you are sending out invoices in a timely fashion. In addition, use this time to send out any payment reminders for overdue invoices.
Record and manage payments received.
A new year many times brings new direction as we try to find new ways to live our lives! As a business owner, you have much on your plate - and most times, it seems to be overflowing. It’s hard to keep up with the day-to-day aspects of running a business while also implementing an overall strategy for the broad picture of your company’s success. This is where delegating tasks and creating a solid team of colleagues you can count on comes in handy. This year, it may be time to turn your bookkeeping over to a professional. Here are some signs it’s time to make the change…
Lack of time.
As a CEO, it’s normal to wear many hats. But, when you try to juggle multiple projects and areas of the business at one time, this is when
Whether your business has an in-house bookkeeper on staff or you outsourced your bookkeeping to a professional, there are certain things you need to review when it comes to your business and its finances. Whether you connect weekly or quarterly, be sure to review the following…
Review the in’s and out’s of your money. You should know where you stand financially, and where you are projected to go in the coming weeks and months. Discuss trends and prepare accordingly.
Take things a bit deeper and analyze exactly where your business is making money and losing money. Work with your bookkeeper to create a sound plan for reaching your financial goals using the data gi
Use the 2020 Olympics as inspiration to take your bookkeeping to the gold! Olympics athletes and bookkeepers have more in common than you’d think. Both require an inner self-motivation to perform their best, to put in the time and effort, and to continue following through. Without this, the act remains undone and incomplete with no signs of progress or completion. To be self-motivated is not something that can be taught.
Repetition. Olympics athletes practice, practice, practice. They put in the time and effort to perfect their craft by doing it over and over. Similarly, bookkeepers perform the same acts in and out to ensure their clients’ books are thorough, complete, and accurate. If they don’t enter the transactions in
Bookkeeping is not something you can eliminate from the day-to-day of your business. If you do, you’re walking blindly into the unknown and likely won’t last. According to the U.S. Bureau of Labor Statistics, 20 percent of small businesses fail within the first year - and after five years, only 50 percent of small businesses survive. There are many reasons why businesses fail, but almost one-third are due to cash flow problems, which can be caught and addressed with detailed, up-to-date books.
That leads us to the question, what exactly is bookkeeping and what does a bookkeeper actually do for you? The act of bookkeeping itself simply means the activity of keeping records of the financial affairs of a business. So, what exactly does a bookkeeper do? Let’s
Your bookkeeping can uncover essential information about your business, but you need to know where to look and how to find it. If you choose not to utilize your books as a tool for your business, you’ll likely notice the negative effect over time. Think of your bookkeeping as the eyes for your business - without it, you’ll be moving forward blindly.
First and foremost, your bookkeeping is a journal for your business’ transactions. All the in’s and out’s of money should be recorded on a daily basis. Being able to see exactly where your money is going and where it’s coming from are incredibly helpful when it comes to having conversations about cutting costs or investing even more into something. There are multiple reports you can run that w
Spring is in the air! The birds are chirping, the weather is getting warmer, and your books are probably lacking the attention they deserve. The week following the first day of Spring is known as National Spring Cleaning Week, and that also applies to your books. Block of some time on your calendar, grab your favorite go-to drink, and get ready to organize until your books are spotless!
Log & throw out receipts.
First, grab that pile of receipts you’ve been collecting and start logging each transaction. Double-check for accuracy and attach as a file, if possible. QuickBooks allows this feature and we can say from our own experience that it’s incredibly convenient. Once every transaction is accounted for, get rid of that pile so you ca
Unless you’re a qualified bookkeeper or certified accountant, you may not know all the ins and outs of bookkeeping. There’s plenty to be done, but when should you do it? We often say things like, “reconcile regularly,” but what does “regularly” actually mean? How often should you really be doing your bookkeeping? Some tasks need to be done on a daily basis, while others can be done monthly or quarterly. Let us help break it down for you…
Let’s talk about reconciling your account(s) on a regular basis and why it’s necessary for not only your bookkeeping but your business. First, what does it mean to reconcile your account? This means you compare your books to your bank accounts over a period of time to make sure everything aligns perfectly (example: comparing your records to your bank account from March 1 - 31, 2019). If there are any discrepancies, you can catch them and act on it. Also, note that you only need to reconcile your accounts if you use the accrual method of accounting. If you use cash basis accounting, then every transaction is recorded at the same time as the bank, so there are no discrepancies.
There are four big reasons you need to reconcile your account(s) on a regular basis.
Your bookkeeper/accountant should be the backbone of your business! They have all the answers on all things financial - they know where your money goes, where it comes from, which bills you pay, how much your employees make - everything. They know it all, so use them for their knowledge, experience, and expertise! Connect with your bookkeeper on a regular basis and ask questions - the answers can greatly help you make informed decisions for your business moving forward.
1. Where are wasting money?
This is a question that’s in the back of every business owner’s mind. Where can your business cut back on it’s expenses? Your bookkeeper will have the answer.
The unemployment rate in the United States is currently 10.2%. Of those employed, 48% are actively looking for new jobs within the next year. Although we are living through an unprecedented time, it’s still just as important to maintain quality employees and to ensure a positive work environment, if not more than ever. Nowadays, people are filled to the brim with stress, worry, and the unknown, so as a business owner, it’s your job to do your best to create a consistent and overall positive atmosphere on the regular. If not, your staff may seek employment elsewhere.
It’s the end of July, it’s been consistently hot, and everything just requires so much effort. It’s normal to fall into a summertime funk - nothing really seems to matter, motivation is lacking, and work is the last thing anyone wants to do. It’s hard not to bring that outlook to work, no matter where you’re working - physically in the office or on the couch at home - but it’s important to fight off the feelings when you feel them creeping in, especially if it impacts your work. Find little ways to reset your attitude, behavior, and motivation.
It’s all about using the right tools, but if you’re not sure how to use the tools, it will be hard to be effective. Invest time for proper training with the right tools to be most effective. At Skynar Bookkeeping Services, we use, and trust, QuickBooks to Set Up, Clean Up, and Keep Up our clients’ books. Having proper QuickBooks training will not only help improve your overall experience, but help you better manage your books and your business.
Whether you’re opening a brand new business from scratch or re-opening after a temporary closure, there are some financial “don’ts” for getting your business up and running. It can be easy to become overwhelmed, get lost in poor habits, or take on too much when you’re so focused on becoming successful and profitable as soon as you can.
Saving money requires discipline and repetition. Whether you’re saving for a purpose or to simply stop spending as much money, it takes dedication and consistency. There are plenty of ways to save, but it never hurts to remind yourself of the ways you can actively improve your financial situation on a daily basis.
The basic acts of hiring an employee or letting them go has always been quite the process, one that requires focus, discussion, and contemplation - but it’s been made even more challenging due to the impact of COVID-19. We’re finding ourselves getting creative to find ways to adapt to continue running our business and hitting our goals. Maintaining your team is always part of running a business, so it’s time to discuss how things will be different moving forward.
It’s more important now than ever to maintain accurate and up-to-date books for your business, whatever it may be. With the state of the economy and everyone adjusting to WFH or not working at all, it can be easy for something like bookkeeping to slip through the cracks. However, neglecting your books during a volatile economy is a sure way to lose sight of where your business is headed and how it’s holding up. To keep it simple: a good business keeps good records.
Having the ability to pull a report at any time is one benefit to having updated books. You can evaluate the finances of your business at any given point to help make important company decisions. Do you need to cut your budget? Run a report to look at the exact numbers of your business in each area - where can you cut expenses? Are there any underperforming products or services? Or maybe you just want to know if you’ll be able to pay your upcoming bills with your current cash flow. You will not receive accurate numbers on these reports if you do not keep your bookkeeping updated at all times.
Due to the closing of many establishments in hopes of slowing the spread of the coronavirus, many people are trying out a lifestyle they had never taken part in before - working from home. Under different circumstances, working from home is considered lucky, but it’s hard to feel that way when there is a global pandemic underway. If you are fortunate enough to be able to continue your work from home, the following are some ways to help you adjust to the change and to maintain productivity:
Your bookkeeper/accountant should be one of the people you most frequently are in contact with, whether it’s making a phone call, sending an email, or sitting one-on-one. It’s vital you communicate the ins and outs of your business on a regular basis - we’d like to say daily, but we know weekly is more realistic. Your bookkeeper can’t do their job if you aren’t constantly keeping them updated with receipts, new employee payroll information, and beyond. The question is: what information should you be relaying?
Your bookkeeping requires regular and detailed maintenance. There’s plenty you should be doing to your bookkeeping on a regular basis, but what exactly should be doing when? Rather than overwhelm yourself by doing everything at one time, break it down into separate sittings.
Let’s make a choice not to give up on our bookkeeping this year. This is such an important practice that cannot be neglected. Starting a few simple habits now will keep your books strong, accurate, and constantly updated. Remember to remain consistent with all of these, and contact Skynar Bookkeeping for any questions regarding setting up, cleaning up, or keeping up with your bookkeeping.
Have you considered outsourcing before? If not, don’t dismiss it just yet. Outsourcing is a convenient, effective way to make sure the work for your business is getting done and being done well. You can rest easy knowing you’re handing your work off to someone who is an expert in the field. When exactly is the right time to outsource your bookkeeping? You’ll find the answer in your own day-to-day work life.
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.
Keeping track of stray receipts is messy, and logging them come tax season is time consuming. QuickBooks Online had previously allowed you to add attachments of receipts, but now it completely captures them for you with their latest feature.
New to QBO this month is a feature called Receipt Capture, and it does basically what it sounds like - it captures screenshots of your receipt. You simply snap a photo of your receipt and upload it to QBO where it will be stored digitally. Beyond that, QBO will sort your receipts into categories.
As your business grows, collecting receipts in a folder and logging expenses in a notebook just doesn’t cut it anymore. You’ll have to create the general ledger for your company, which is a financial tool that’s essentially a master list of every financial action made within your business. Your general ledger should include your assets, liabilities, and equity accounts, and any changes to these accounts should be listed as they happen. It includes every transaction throughout your company’s lifetime.
How do I format my general ledger?
Startup businesses often make the same mistakes that lead to the decline of their business. As an entrepreneur or business owner, you put too much time, money, and effort into your business for it to fail. Learn from the mistakes of other businesses and work to adapt accordingly.
One big mistakes startups make is not working with a CPA to plan, predict, and broadcast. CPA’s will point out important items to keep an eye on, and help you create a complete plan. This includes tax planning. Don’t forget about taxes or this will cost you down the road.
If you’re just starting to navigate your books, you may be unsure of some of the lingo. It’s like a different language for those outside of the accounting world, but the more you work with your books, the quicker you’ll catch on. What’s important is to think of everything in terms of your business; these terms provide you with vital information about your company’s standing. Let’s go over some common terms you’ll frequently hear and need to use in order to discuss and understand your books.
If you do your own bookkeeping, it’s important to double-check your records to make sure everything is correct. Here are five easy and important ways to make sure your books are in order.
Your bank account and your books should have the same number. If not, check QuickBooks to make sure your deposits weren’t added on multiple lines. This can happen even if the deposit hasn’t reached the bank yet.
2. Is any income double-recorded?
Obviously we don’t want income recorded twice. Sometimes we have clients mark invoices as paid and move them to Undeposited Funds. After they go to the bank, they record an additional entry for depositing the money, but this is wrong. This double records your income - once in Undeposited Funds and once as a deposit. After you deposit money in the bank from Undeposited Funds, you need to make an entry in QuickBooks moving the money from Undeposited Funds to the bank. This will move the money, not double-record it.
3. Are any credit card transactions double-recorded?
You never want to be charg
If your books aren’t up to snuff, it’s time to outsource. To make accurate and informed decisions on your business, it’s important to reference your bookkeeping. If they’re a mess, it means you don’t have the full story on your business. Making blind decisions is always a risk (one never worth taking!). Let’s talk about three signs it’s time to outsource.
You have a pile of receipts and papers left unrecorded, going back months.
If you have one or many folders stacked with receipts and papers from past months that haven’t been logged, it’s time to outsource. If you don’t put the time into your books, you’re neglecting your company as a result. As a business owner, it’s important to know where you stand financially, and this can’t happen if your unlogged receipts are collecting dust on your desk.
Does your business use cash basis accounting or accrual accounting? What makes the two methods different is the timing of when sales and/or purchases are recorded in your accounts. Cash basis only recognizes income and expenses when money has been actually been exchanged. Accrual recognizes income and expenses as they’re earned/billed, whether they’ve been paid or not.
In a perfect world, all of your clients would pay you on time, which, in result, would help you manage your cash flow more effectively. That’s not always the case, though. Not every client will pay you on time - that’s the harsh truth of it. What steps should you take when an invoice remains late and unpaid?
We always say you should be paying constant attention to your books, so we decided to break it down based on what you should be doing daily, weekly, and monthly. What you do in these short periods of time can impact the overall state of your books and your knowledge of your company’s financial standing. The more often you work in your books, the less time you’ll have to spend on them come the year’s end. You’ll thank yourself come December! If not, we’re here to help.
Your books will either be your best friend or your worst nightmare. Depending on much attention you give them, they’ll treat you accordingly. They’ll help you only as much as you allow. The information you feed them, and how often, makes all the difference. Some common bookkeeping questions being with, “how often should I…” Let’s ensure you and your books are on the same page.
How often should I be adding to my books?
Truthfully, you should be adding to your books every single time there is a cost or income. However, that’s just not always realistic. We recommend sitting down daily, bi-weekly, or weekly. If you sit down for a few minutes at the end of the day or week, to enter your debits and credits, this will ensure your books have the latest numbers and are as up-to-date as possible.
How often should I see my bookkeeper?
If you don’t do your own books, it is vital to communicate with your bookkeeper. Your bookkeeper can only do so much if you’re not consistent in communication, whether it’s phone or email. So long as you are sending your bookkeeper fr
If you’re a small to midsize business, you need to be using QuickBooks Online (QBO) to manage all of your finances. QuickBooks Online makes life easier by helping you, not adding to the stress in your life. With just over 5.6 million users, it’s hard to deny it’s benefits.
So, what’s the big deal? There seem to be an endless number of efficient features in this accounting software, so we
Whether you run your own business or just work on the books, it’s imperative to know all the lingo. When you work on your books, these factors will tell you quite a bit about your business’s financial health. We know there seem to be an infinite number of terms in the accounting and bookkeeping world. It’s almost like a different language!
When working in your books, you need to know exactly what the numbers mean. Often times people know the general meaning of a term like, “profit” but don’t actually know how it’s different from “revenue” or how the two affect each other.
Your profit is how much money your business has made from the sales of your goods and services or from things like fees or interest during a specific time period. For example, you could look at your profit from April to see how much money you made during those 30 days. If you sent out invoices for a total of $35,000 from April 1 - 30, then your profit
The New Year is one month away, is your business plan ready? If you haven’t started thinking of how you want to approach a new year then it’s time to start. Assess your business based on the goals you accomplished throughout the year, and strive for more in 2019. The first step to thriving is having a game plan.
Your business plan should contain three components: a mission statement, a vision, and a strategy. In plain terms, you need to know who you want to be, where you want to go, and how you’re going to get there. Establish clear and specific goals.
When setting up your books, you must first manage your accounts. The word “account” in bookkeeping doesn’t refer to bank accounts, which one might first think. It actually refers to the different kinds of transactions made, which will all be grouped into their rightful place, a.k.a. “account.” Keep this in mind moving forward. Some examples of accounts are sales, payroll, and inventory, just to name a few.
The act of keeping your books up-to-date can be a time-consuming and tedious task, but the hard part is reading what your books are telling you. If you look at your numbers and that’s all you see, it’s time to talk with a bookkeeper. Bookkeepers are like cartographers: not only will they map out your books, but they’ll tell you where all the mountains and valleys are.
Four Signs You’re Ready To Outsource Your Books
Your books are the glue that holds your business together. They need to be given detailed attention on a regular basis. If you let your records slip through the cracks, your business will likely follow. Outsourcing is a simple solution to what could be a massive problem. Here are four signs you should switch to outsourcing today:
If you’re switching bookkeepers or in the process of looking for one, it’s important to know what information they need to do their job the best they can. Unlike an accountant, who doesn’t need to know every little thing about your business, your bookkeeper needs EVERYTHING. Yes, we mean everything. We made a handy list for you to use as a reference for when you prepare these documents for your bookkeeper.
Bookkeeping fraud is one of the most common forms of internal fraud. When running a business, there is always the potential risk for fraud within your company’s four walls. Unfortunately, not everyone in the workforce is a trusted individual; they could access your private files and
Mistakes are likely happen in your bookkeeping, but it’s best if they don’t! We have a few common errors that can occur and how to avoid them. They’re easy to miss but also easy to fix. Sometimes it’s as easy as double-checking your entries and making sure numbers match up. When working on your books, be sure to keep your eye out for these five mistakes that can easily slip by unnoticed.
Bookkeeping is the silent hero of your business. It’s solid and reliable. It keeps you grounded, anchoring you down in one place when things become chaotic. Many factors may influence your business, but the numbers don’t lie. The numbers are the black and white of your business, the “this is it” aspect that cannot be twisted.
Why not bring this anchor into your home? You don’t need a computer - grab a notebook and start recording money in and money out. Keep it simple. Break it down per month, record your expenses, your income, everything. At the end of the month, do the math and see if you came out ahead or behind.
A successful business can be traced back to two things: fantastic finances and excellent marketing. The heart of your business lies in a perfect combination of these two factors.
Let’s talk marketing.
You created your business. That’s step one, and arguably the easiest step. Now what? You need customers. But, how do you get customers? First, they must know about you. If you don’t say “hey, hello, we’re here to service you!” using strategic marketing tactics, then you essentially don’t exist. To get people to know about you, that’s step two.
You don’t need a new year to make a change, you simply need a new day. If your 2017 accounting and bookkeeping didn’t go as smoothly as you had hoped, we have a solution – let us help you.
When it comes to your books, accuracy is vital. You want to handle them properly so the information you’re using is error-free and understood. If you’re doing any of the following, you’re not helping your books or your company.
Mistakes can happen in your books, no matter who you are. It’s important to know why your mistake happened and how they can be avoided.
Accounting is an essential component of every business regardless of size. It’s important to keep in mind the basic do’s and don’t’s of accounting that not everyone may know, but should! These are common and often unnoticed mistakes that can lead to future problems.
Cash Flow vs. Profit
Don’t assume that profit also means there’s cash flow. What’s the difference? Cash flow is the inflow and outflow of money while profit is the extra money left over after expenses are deducted. It would be nice to assume that profit leads to cash flow, but that could give you a distorted view of how well (or not) your business is doing.
Bad Bookkeeping Records and Communication
Not taking your bookkeeping seriously nor communicating with your bookkeeper enough are simple mistakes that need to be avoided. Effective bookkeeping begins with recording each and every transaction. This includes not forgetting to record small transactions—these add up over time. Not only should your transactions be recorded, but they should be categorized. Organization is important for accurate records.
To have these transact
It’s essential for every business to have accurate, consistent, and coherent records of their financial activity. To ensure your records hit all three of these factors, you should highly consider outsourcing your bookkeeping/accounting. Among the many benefits of outsourcing, expertise is a big one.
By teaming up with an outside company, not only will your books be thoroughly and accurately completed, but you’ll have access to impartial and professional advice. They’ll pass along any tips or tricks they think will help your business thrive, while also being only an email or phone call away from regarding any of your own questions or concerns.
Outsourcing your bookkeeping/accounting can eliminate any issues of misuse of information, your finances falling into the wrong hands, or any conflicts that may arise if information is given to the wrong person. Taking your financial information out of the workplace will keep it from ever going where it shouldn’t.
Your finances are something that should be kept private, not broadcasted for everyone to see. This applies to your home life and your work life. If you own a business, it may be best for your employees not to be involved in the financial aspect of your company. People may talk, rumors could spread, and information could be leaked. To keep your financial information private and in good hands, it’s a beneficial idea to outsource your bookkeeping/accounting to an outside company.
Accounting and bookkeeping are both essential components to every business, no matter the size. They are services necessary for businesses to grow, thrive, and survive. But, what’s the difference between them? Although accounting and bookkeeping share similar goals, they each help you during different stages of your financial cycle.
Life can get busy, especially for those who own businesses. Sometimes trying to do it all can leave owners falling short. Work may be left incomplete, overdue or forgotten, and goals may never be reached. Outsourcing is the perfect solution, rather than trying to take on more than they can handle.
Outsourced accounting is a great way for businesses to lessen their workload while also being certain that their accounting is being completed by an expert. Less work, fewer worries.
Not only does outsourced accounting help you lessen your workload, but you can also make better use of your time by growing and strengthening your business. You’ll have more time to give special attention to your employees, clients, and goals. You won’t lose clients or projects due to focusing on making sure the accounting is complete and correct. By outsourcing your accounting, you will never again turn down clients or projects due to being too swamped with work.
At Skynar Bookkeeping, we utilize QuickBooks as our preferred accounting platform for many reasons. The first being it is the best accounting software for small and mid-size businesses—it is ranked number one among all other software for small business accounting. It is user friendly and can be used for any type of business. We strive to make our clients’ business lives easier and QuickBooks helps us do so.
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