Keeping on top of your businesses daily financial transactions is vital for long term success. That is why bookkeeping is an essential part of running any business.
If you are recording the ins and outs correctly you;
- Can track your income and expenses against your financial plan and budget
- Spot trends and make informed decisions about the future direction of the business
- Keep up to date with your tax and other regulatory obligations
- Find peace of mind. Knowing that your finances are in order can give you peace of mind and allow you to focus on other aspects of your business
- Create an early warning system. By tracking your income and expenses regularly, you can identify any potential problems early on and take steps to correct them
- Identify opportunities for growth. By understanding your financial data, you can identify areas where you can save money or grow your business
But if you’re not careful, bookkeeping can quickly become a time-consuming and overwhelming task.
That’s where a weekly bookkeeping routine comes in. By setting aside some time each week to enter your transactions, reconcile your accounts, and file your paperwork, you can keep your bookkeeping up-to-date and avoid any major headaches down the road.
If set up correctly using the latest technology to assist you, you shouldn’t need more than two to four hours per week depending on your size and complexity. A weekly routine is also key to ensuring you stay on top of the paperwork.
Here are five tips for improving your bookkeeping
- Set up a system. The first step to improving your bookkeeping is to set up a system that works for you. This may involve using accounting software, creating spreadsheets, or simply keeping a manual record of your transactions. The important thing is to find a system that you can stick to and that will help you to track your income and expenses accurately.
- Get organised. Once you have a system in place, it is important to get organised. This means keeping all of your receipts, invoices, and other financial documents in one place. It also means creating a filing system that will make it easy to find the information you need when you need it.
- Enter your transactions regularly. The best way to avoid errors and keep your records accurate is to enter your transactions regularly. This may mean entering them daily, weekly, or monthly, depending on the volume of your transactions. The more frequently you enter your transactions, the easier it will be to keep on top of your finances.
- Reconcile your accounts regularly. Reconciling your accounts is the process of comparing your bank statements to your bookkeeping records to make sure that they match. This is an important step in ensuring the accuracy of your financial records and can help to identify any errors or fraudulent activity.
- Find time. By identifying a space in your diary each week to work through your book keeping tasks and by having a checklist to tick off you form a habit which enables you to keep control.
If you don’t already have a bookkeeping routine, I encourage you to start one. It’s a small investment of time that can pay off big in the long run. If you are local to Lincoln and would like to join a masterclass we are running as part of our Business Lab workshops on Wednesday 12th July, head to the Business Lab page or fill out the form below.