Keeping files for your business is a necessity. The papers stack up fast and seem
Spring has finally arrived! The sun is shining, birds are chirping, and…your books are a mess. It’s time for some major spring cleaning! Just like you do with your house, you also need to do with your books. Leave your Lysol where it’s at, instead grab some coffee and get to cleaning!
Your books need to be accurate, so everything you’ll be doing will to be to maintain accuracy and up-to-date records. Are your accounts reconciled? Do your books match what’s in your bank account? If the answer is no, it’s time to make these yes’s. Verify that all expenses are assigned to the correct accounts. This will help you avoid any “oops” moments you may run into in your books.
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.