As a small business owner, bookkeeping is one of those necessary evils you just have to deal with. But that doesn’t mean it has to be hard. In fact, there are a few simple steps you can take to make bookkeeping much easier—and less time-consuming.
Below, we’ll outline some of the best ways to make small business bookkeeping easier.
Why Bookkeeping Is Necessary for Small Businesses
Bookkeeping might not be the most exciting task for a small business owner, but it’s a necessary evil. And with the right tools and techniques, it doesn’t have to be as daunting as it might seem.
Think of bookkeeping as a way to keep track of your business’ financial health. By recording your income and expenses, you’ll have a better understanding of your business’ profits and losses. This information is essential for making smart business decisions down the road.
That’s why it’s important to find a bookkeeping system that works best for you and your business. There are plenty of options out there, so take the time to find one that’s easy to use and fits your budget. Novo small business checking accounts work well in tandem with your bookkeeping system. They include the ability to add notes to each transaction, add categories, upload images and documents, and more. You can also export your transaction data to a CSV file from your Novo account. They also provide a number of integrations with accounting software, merchant services, and peer-to-peer payment platforms to help you manage your company’s finances more effectively.
How to Get Started With Bookkeeping
Here are a few tips on how to get started:
- Get organized. Keep all of your receipts and financial statements in one place so you can easily access them when you need to.
- Set up a budget and track your expenses. This will help you stay on track and make sure you’re not spending more than you should be.
- Use a bookkeeping software program or app. This will make it easy for you to keep track of your finances and save time on paperwork.
- Arrange for regular reviews with your accountant or bookkeeper. This will help ensure that your books are accurate and that you’re taking full advantage of any tax breaks available to you.
Setting Up a System for Organizing Financial Records
Since bookkeeping is such an important part of being a small business owner, it’s crucial to set up a system for organizing your financial records. This will help you stay on top of your expenses, income and taxes, and make it easier to track your progress over time.
There are a few different ways to set up a bookkeeping system. One popular method is to create separate folders for each year, and then subdivide those folders by type of expense or income. You can also use a spreadsheet to track your finances, or use accounting software like QuickBooks or Wave.
Making Timely Financial Reports
Making routine financial reports can be a daunting task for small business owners, but with the right tools, you can quickly create the reports that matter to your business. The best way is to use accounting software, as it automates and streamlines the process.
For example, you can use an accounting platform that allows you to categorize expenses and generate charts and graphs so that you can get a better understanding of your spending patterns. You’ll also be able to track expenses and income over time, so that you can identify trends and make informed decisions.
Using Automated Accounting Software
Another way to make small business bookkeeping easier is to use automated software. Automated accounting solutions streamline the entire process by tracking invoices, payments, bills, and everything else you need in one place. Plus, using a cloud-based software means you can access your financial data anytime, anywhere.
A good automated solution can also help you set up payment reminders and invoice tracking. This way, you’re less likely to miss an invoice payment or be late in sending out invoices. And if you’re worried about security when it comes to entering information online, look for a program with bank-level encryption that keeps your data safe and secure.
Utilizing Professional Vancouver Bookkeepers
If DIY bookkeeping is overwhelming or you’re running out of time, then it could be worth considering outsourcing to professional Vancouver Bookkeepers. Professional bookkeepers have the expertise and experience to ensure that your books are accurate and up-to-date.
Before committing to a bookkeeping service, you should check that they have the relevant experience in small business accounting. You should also ask about their processes and procedures, and confirm what they can do for you such as providing quarterly and annual financial statements, preparing payroll returns, filing GST/HST returns, setting up budgeting systems, generating invoices etc.
Bookkeeping can be a hassle for small business owners, but it’s important to keep on top of your finances. Here are a few tips to make bookkeeping easier:
- Keep track of your expenses.
- Organize your financial records.
- Use accounting software.
- Consult a bookkeeper.
- Stay on top of your finances.
Bookkeeping can be a daunting task, but following these tips can make it a little easier. If you need help, consult a Vancouver bookkeeper for assistance.