4 Simple Tips to Make Bookkeeping a Breeze
Whatever business you have, you have to agree that you need to do bookkeeping. A strong bookkeeping practice is an important part of any business. Regardless of the size of your business, you should ensure your books are accurate, updated and easily accessible, as they give you crucial information about the financial status of your business. Here are a few tips that may help you manage your books efficiently.
1. Chart of Accounts
You can hire efficient bookkeeping services Singapore. But at the same time, you should create a chart of accounts. A chart of accounts can be used to categorize every financial transaction generated by your business. Thus it will reflect your whole operation and will act as the backbone of your bookkeeping system. Typically accounting software comes with a preset list of accounts; but with the growth of your business, you should modify your list. Some essential things to remember are:
- Don’t over-categorize. Consider only those accounts which you need.
- Keep things generic, i.e. rather than creating accounts with vendor or customer names, an account per type of transaction would be more functional.
- Be sure you choose the right account type for every account, or else there might be errors in your financial statements.
2. Go Digital
Eliminate the paperwork and go digital. Businesses that are still using papers to manage their hourly employees are missing out the benefits of storing their records in the cloud. With cloud storage, they can import hours straight to payroll and accounting software which simplifies bookkeeping, makes managing a payroll a breeze and saves so many hours every week for busy owners and their managers.
3. Make and Maintain Thorough Inventory Records
Small businesses usually don’t have a large staff to manage tasks like inventory maintenance which are essential but typically overlooked. Having an efficient inventory management process can help these businesses prevent misplacement of merchandise or employee thefts. These records can even help businesses identify customer shopping trends and thus ensure efficient purchases in the future.
4. Ask Questions
If you don’t know something, don’t hesitate to ask. Your accountant can categorize revenue and expenses properly which can save you and them a lot of time at the year end. Don’t forget that your accountant charges you for the time they spend; so, take this opportunity to learn what you aren’t aware of – ask questions. By excelling in bookkeeping, you can manage your expenses efficiently, focus on your weaknesses and be in a better position to grow your business.
Follow these simple tips and bookkeeping will be a breeze rather than a tedious task.