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. Accounting for revenues and expenses is mandatory. Document your business’s processes for submission of expense reports (expense management), separation of duties within accounts receivable and payable, internal controls over financial reporting, inventory management, etc.
- Choose software that is understandable and reliable. Become familiar with basic accounting terms such as accrual versus cash, capitalization, equity, etc. 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, reconciling the book versus bank balances and running financial reports.
- 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 must implement. 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.