Bookkeeping is the foundation for accounting and subsequent financial statement management. At the same time, it's repetitive, mundane, and a back-office task that you'd rather not spend too much time on. Regardless, one cannot forget that it is an essential first step and thus it needs to be done well.
Here are a few tips to complete this function quickly, so that you can return to your core business tasks.
Don't skip the daily dose
If you're handling the bookkeeping in-house, then make sure you do it daily. Carve out a small time during the day and break your bookkeeping into small chunks. This way you can divide and conquer. Even though some percentage of your time will be taken up by a back-office task, still, it's manageable vs leaving it all for the month-end.
Follow these quick daily checks
-Is the business checking account balanced?
-Any new invoiced or payments to be recorded?
-Are all expenses and invoices analyzed and paid?
-Is the daily financial statement review done?
In short, make a checklist, keep it small and track it daily.
Track Accounts Receivable
This is your money, and seeing the cash come in is always good news. However, this task can be further simplified using a daily workbook. Ensure that you record the following tasks weekly.
-Follow up on pending/unpaid invoices
-Recording payments
-Sending out invoices
-Tracking cash payments
-Writing off paid invoices
Keep personal and business finance apart
You'll see us reiterating this point pretty often. That's because it's surprising to still see a lot of small businesses mix the two. This will not only mess with your bookkeeping but also lead to errors, that further cause taxation issues and follies.
Mingling the two will cause a lot of confusion. Talk to your nearby bank and learn about opening a business bank account. Make sure you do your research and open an account at a bank that charges no to minimal fees.
Keep tabs on that cash
Cash is one of the most important components of every business. Your aim should be to keep a healthy figure on the balance sheet. Thus you need extra checks to ensure that every cash-related transaction is documented.
If you prefer the manual tracking way, then keep a receipt book with you. However, a much better way is to automate it. Keep a physical copy of your recipes, or best, save it in the cloud.
Ditch the DIY and automate
No matter how small your operations are, the smart idea is to automate those. There are so many free tools out there. Even though you will have to spend time manually uploading or tracking your invoices, still you have a reliable way of recording those.
If you want to stick to free technology, mix and match a couple of vendors and use their free features.
Outsource it
This is the best part. Let's remember that, time is money, as simple as that. Let a professional handle it. This way you can focus on your core tasks and expand your business. A professional outsourced bookkeeper will simplify your bookkeeping for a monthly fee. This frees you from the daily tracking hassle once and for all.
Conclusion: As a startup or a small business, we understand that you have lean teams. Having said that, let's work smarter and not harder. That's exactly where Greyleaf steps in.
Remember that every free other software out there still requires you to manually upload those invoices (Hassle, hassle, hassle!). Let your accountants take care of that so you can follow on the analysis. It's a one-stop-shop for making your financial analysis simpler. Get on a call today to learn more.
Save your time and money and focus on what matters.
Until then
Happy Business
