Accounting tips for your business
Many entrepreneurs and business owners do not enjoy accounting or do not have the skills to do their books. Below, we highlight some tips to assist you and your business.
1. Be organised
One area where many businesses fail to be organised is with the maintenance of source documentation. Firstly, make sure that you keep all source documentation and secondly make sure that you keep everything in one place so that it’s easy to reconcile at month/ year end.
Ensure that you are consistently capturing your source documents. We have seen numerous clients (before working with us) skip a month or two, and end up not doing their books for months after that because they feel it is too much effort and will take too much time to catch up.
3. Keep accurate records
If you use accounting software, you’ll be able to connect your banking feed to the software. This ensures accuracy in the numbers. If you are manually capturing figures, consider putting a review process in place where someone else is checking the numbers.
4. Try and put everything through your bank account
It is a lot harder to keep track of cash payments and receipts, compared to tracking income and expenses in your bank account. As far as possible, put everything through your bank account so that there’s an audit trail. Using cash means more admin and time spent on keeping record.
5. Consider outsourcing your accounting
If you don’t have the time to do your accounting, you don’t enjoy it or you don’t have the skills to do it, outsource. Professional accounting help is generally a good idea, especially if you don’t have the skills.
If you need help with your bookkeeping and accounting, let us know. We can help. Contact us today for a consultation.