Your small business is growing, but are you still managing your financials and doing your own accounting? Here are some bookkeeping tips for small business owners and how hiring quality bookkeeping services can save you money and time.
If your small business is growing, you can only get away with do-it-yourself bookkeeping for so long. As your company grows, your finances will become more complex and investing in professional bookkeeping services will help you save time and money.
Some of the signs that you may need bookkeeping services include:
- Your bookkeeping is taking up more time than you can afford
- Your books are never up to date
- You miss out on tax write-offs
- Your cash flow is unpredictable
- Your sales have increased, but your profits haven’t
Professional Bookkeeping Services in Chestermere
At IAPC, our professional bookkeeping team in Calgary identifies any problems you may have and helps build customized solutions. By doing so, we help small and medium sized businesses like yours become financially successful.
Want to know more about our business bookkeeping services in Calgary?
5 Smart Bookkeeping Tips For Small Businesses
Your business’s books are a scorecard of how well your company is doing, but if you have no experience in bookkeeping, this process can be a challenge. Even if you do have the experience, some business owners get too caught up in the day-to-day and don’t have the time to do their bookkeeping.
If you are struggling with this aspect of your business, here are 5 simple bookkeeping tips for small businesses:
1. Separate Your Business and Personal Expenses
Co-mingling your personal expenses and business income is a common mistake in small business bookkeeping and one that may cause a huge headache for your company in the future. So make sure to open a business bank account as soon as you decide to go through with your start-up, and get a separate business card.
Not only will this help you successfully separate your expenses, but it will also help your business build its own credit rating.
2. Automate Whatever You Can
Entering data into spreadsheets and then reconciling the numbers manually is not only old-school, it is also extremely time consuming. Why not consider using a cloud-based bookkeeping software, and do your business banking online.
In this way, you can sync your bookkeeping software with your business bank account so you always have accurate, up-to-the-minute records. In addition, with the cloud, your critical financial data is backed up safely off-site.
3. Hire a Bookkeeping Service
When you start a business, there is a lot of information to track and record, and bookkeeping may not be something you enjoy or have time to understand. However, without proper bookkeeping:
- It’s easy for transactions to go unrecorded
- Mistakes can be made and important details lost or forgotten
- Transactions will pile up until the end of the financial year
Bookkeepers offer a vital business service. They will save you time by handling all the daily financial work for you and allow you to concentrate on what matters most: running and growing your business.
4. Keep A Close Eye on Accounts Receivable
When customers don’t pay on time, your business’s cash flow can dry up fast. Pay attention to when your receivables are due and contact any late-paying clients to nudge them along. Even if one of your customers is having financial difficulties, you may be able to set up a payment plan to get some of what you’re owed.
5. Stay On Top of Tax Deadlines
To avoid getting caught short, plan ahead and set aside money for anticipated tax bills. Pay on time so you don’t ever have to face any fines. In this respect, working with an accountant or bookkeeping service is important because they can remind you a week or two before the payment is due.
Call Today
To find out more about our bookkeeping services, and how we can take this responsibility off your shoulders so you can focus on other aspects of your business, contact us at 1 (403) 605-6887 or fill in our online contact form.
