A Few Important Basics to Small Business Bookkeeping

If you’re like most business owners, going over endless spreadsheets and accounts isn’t the biggest thrill of owning a business. Unfortunately, bookkeeping is unavoidable, and like it or not, it’s something you have to take seriously and keep track of consistently. Fortunately, you don’t have to be a bookkeeping expert to make sure your business runs smoothly. With these few basic tips, you can gain enough mastery over your business’ bookkeeping processes to avoid some of the biggest and most costly mistakes.

Never mix personal and business bookkeeping

This may sound like basic common sense, but it’s a lot easier than the average person realizes to mix personal finances with business bookkeeping. You might want to take advantage of your bookkeeping software to streamline your own personal finances and fail to keep the two properly separated. Or, you may use personal capital to fund some business services during hard times. In any case, it’s important to have separate bookkeeping systems for your personal and business spending, and to learn the ins and outs of each system.

Use the right bookkeeping software

Speaking of bookkeeping software, no two solutions are created equal. Some may have flashier bells and whistles, but offer little or no support. Others might have excellent customer service backing them up, but don’t do what your business needs. Take time to find the right bookkeeping software for your business, specifically. In most cases, it’ll be one that offers an online bookkeeping solution as well as easy integration with third-party payment processing, inventory management, and other systems.

Stay on top of routine system cleanups

When you first start getting used to making bookkeeping part of your workflow, a lot of it will be trial-and-error learning. Experience is a great teacher; however, when it comes to your bookkeeping software, mistakes that remain unfixed can continue impacting your bookkeeping processes well into the future. You can avoid the underperformance this causes, or resolve it quickly, by staying on top of routine file and system cleanups. Work with a trusted professional who can trace your records back to the earliest entries, and check and correct errors to improve your system’s performance.

Learn a few more basics about bookkeeping

For most small and medium-sized businesses, keeping up with good bookkeeping practices can be challenging. These few basic tips can help make it easier. For more information, email us at [email protected], or contact us by calling 214-273-6599.