30 Jun 3 Tips to Bookkeeping Better: Businesses
You must know your company’s revenues and expenses. Not knowing if your business is profitable is stressful and is one of the many outcomes of weak accounting processes. Note the below tips that are a start to your journey of using better bookkeeping processes within your business:
- Set standard bookkeeping policies for your company. Document your business’s processes for separation of business and personal expenses, submission of expense reports (expense management), categorizing business transactions, remitting sales tax and safeguarding financial information.
- Choose software that is understandable and reliable. Become familiar with basic accounting terms such as account, profit, loss, financial statement and estimated tax. Add a bank feed to your check register to enhance accuracy and save time on data entry.
- Be involved in the bookkeeping process by reviewing your bank statements, verifying that the bank statement is matched to its register and running financial reports like profit and loss.
- A best practice is to recruit a Certified Public Accountant (CPA) and Certified Bookkeeper (CB) on your team. They compile financial information for discussions about strategies like scaling your business.
Bookkeeping is a workflow that your company uses to tell its financial story. Use bookkeeping as a frame of reference to evaluate the growth of your business.
Pierce, CPA & Advisors assists businesses with planning, development, growth and resiliency. Contact Pierce, CPA & Advisors at (205) 370-4508 and/or welisten@AuthenticCPA.com today!
Pierce, CPA & Advisors’ website, social media posts and blogs are meant to be used as informational guides and should not be construed as providing any health, legal, business or accounting advice. A best practice is to consult with professionals like government officials, healthcare experts, Certified Public Accountants, Certified Bookkeepers, attorneys, etc., about your situation.