If you’re like many small business owners, the thought of bookkeeping can be intimidating. But with a few tips, it doesn’t have to be. In this blog post, we’ll show you ways to make bookkeeping hassle-free and straightforward. You’ll learn how to keep records in order and protect your finances with these top tips!
10 Ways How to Make Bookkeeping Easy
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Create a structure
Start by creating a structure that you can use in your business. This should include categories, descriptions, and accounts. Create different reports for different categories to keep track of your finances easily. For example, you can track sales and expenses separately, or you could custom-report information on items such as lab notes and receipts.
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Track expenses monthly – not daily
Most small businesses are run on part-time schedules rather than full-time schedules. The problem with this is that most accounting software packages don’t allow for proper month-to-month tracking and bookkeeping because daily transactions can get lost in the shuffle.
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Outsource your bookkeeping
Relying on a team of professionals to handle your bookkeeping can free up your valuable time and resources. Outsourcing is an excellent way to make bookkeeping easy because you can focus on other areas of the business that require your attention such as marketing, sales, or customer service.
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Utilize tax software
Tax software offers automated solutions for handling taxes and accounting that are usually easy to use and more affordable than human bookkeepers or accountants. Tax preparation programs allow you to organize your data, track expenses, create payroll, and produce reports that simplify the process of tax season and help you stay compliant with federal regulations.
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Keep track of all expenses and income for tax purposes
Keeping track of your financials for tax purposes is essential to a company’s success. Don’t forget to keep track of your expenses and income throughout the year and prepare yearly taxes, including Form 1040 Schedule C which lists all your business-related deductions, including income you receive from commissions. There are also government agencies that require you to do so, such as the IRS or state revenue department.
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Return on investment (ROI)
Investing money in bookkeeping software is an excellent way to save time and increase profits because you can create custom reports such as profit/loss reports, balance sheets, comparisons with prior periods, etc.
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Be organized
Many business owners who hire freelance accountants or bookkeeping services find themselves organizing their files for them. Remember, if you’re spending your time organizing your accounting information for the accountant, then it is costing you money to have someone else do something you could do yourself. Get organized!
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Involve your employees in the accounting process
Involve your employees in the accounting process by training them on how to take calls, enter data in QuickBooks, or just keep up with a checkbook register. Be sure to keep records of all calls, meetings, and cash transactions so you can easily prepare the bookkeeping for your employees.
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Utilize QuickBooks Online
Use online accounting software that allows you to manage your business on the go with your mobile device or computer. This option allows you to do everything from ordering supplies or paying vendors to tracking inventory and expenses right at your fingertips.
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Keyword research
Bookkeepers who know how to use keyword research can produce excellent results for their clients. Instead of spending hours trying to find out what keywords their clients are searching for, bookkeepers with great keyword research skills can quickly find the best keywords and pass them along to the client. This will help you save time and money by delivering those keywords through search engines like Google AdWords or Yahoo sponsored search.
Conclusion
Bookkeeping is a skill that every small business owner needs to have. Fortunately, there are many ways you can make bookkeeping easy for yourself, your employees, and your company. Just remember to organize your information into different reports for easy access and follow these tips so you can focus on what matters most.
