Your business is a mirror of how you are doing in your activity/business. Most of the time a small business uses a spreadsheet for quick reference. As the business grows, owners do not realise the need for structure recording and data management. The reasons for this are either you are busy growing your business or you ignore the need for proper record keeping/bookkeeping.
This runs smoothly until there is a need for more capital to support the business. This is when the need for accounting/bookkeeping arises. If it is too late businesses might end up spending more money organising backlog and fixing it.
Bookkeeping is one of the most important tasks of Business which owners should not avoid.
- Seek Advice – Ask your accountant or bookkeeper before you act. Plan your requirements. Hand over the job to professional to work on to provide the most appropriate solution in your circumstances.
- Business is Business – Strongly recommend keeping personal affair separate from the business affair. There is a very thin line between personal expenses and business expenses. Keep your business bank account separate from personal. Use a personal bank card for personal expenses.
- Record-Keeping – This could be a nightmare for many small businesses. Things like the new Office location, some tasks performed from the home office, documents may be all over the place. Remember your obligation to keep records for 7 years.
- Reviews – Consider Bookkeeping/Accounting as one of the most important tasks of your business. Periodic review will help you to know where you stand in terms of numbers. Numbers speak many things.
- Technology Support – Using a Spreadsheet or doing manual work for bookkeeping is time-consuming. Try to use technology, this will help you to save your important time and will keep your work neat and clear.