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Business people using pen,tablet,notebook are planning a marketing plan to improve the quality of their sales in the future.
The management and recording of financial documents and records can prove to be a challenge, especially if it is not done in an organized and efficient manner. When they are in paper form, there is a risk of losing them. Although with some cloud storage services, major security issues are at stake as bookkeeping records can fall prey to malicious viruses and dangerous hackers.

For effective business bookkeeping and maximum security, make sure that you use the following 9 tips and tricks.

1. Use Accounting/Bookkeeping Software

Although you can handle all of your documents in paper form, going paperless through cloud-based accounting software will enable you to manage and record your bookkeeping documents more efficiently.

The use of accounting/bookkeeping software enables users to handle all of the basics of bookkeeping, providing easy-to-use management tools that help in effective organization and improved security. Vital templates for check printing, deposit slips, business records, and invoices are part of the package that come with the software.

Another benefit that accounting software provides is the ease of accessibility. Once you have all of your important data on the software, you can access it from anywhere. This is because cloud-based software has applications that can be used on a smartphone, providing easy access to the records. 

2. Maintain a Chart of Accounts

Small businesses have to maintain a ‘chart of accounts’ which is a list of accounts and bookkeeping records that help in categorizing all financial transactions that take place in your business. You may own a number of different titles, depending on the type of processes taking place in your business. There are 5 types of business accounts that are commonly found:

  1. Liabilities
  2. Assets
  3. Owners’ Equity
  4. Income
  5. Expenses

  3. Practice Diligence with Tax Forms

If your small business has paid contractors and employees, it is important to stay attentive towards the tax forms that your business is preparing.  An important factor that you have to consider for your small business is that you have to make sure that the employees working in your firm have the forms they need at the required time so that they do not have to face penalties or interest. Make sure that you set aside an ample amount of cash to cover all of the payroll taxes that will be applicable to the wages of your employees.

4. Do Not Combine Business and Personal Finances

One of the most important bookkeeping tips you must practice is ensuring that your personal and business transactions are not combined in any way. Your business is a viable entity and you have to treat it that way. Combining your personal finances with the expenditure of the business will make tracking in the organization much harder and it will be much more difficult to track records. Always ensure that you have a different checking account and separate credit cards for your small business and personal life to avoid confusion and ensure effective organization, saving you both time and money.

5. Outsource your Bookkeeping Needs

Business owners have an option of outsourcing their bookkeeping needs. This is especially helpful for small business owners who are running a business and playing the role of a bookkeeper themselves. This not only divides the tasks and responsibilities while lowering the burden, but also enables you to accommodate the time into something else that is beneficial to your business.

Outsourcing a bookkeeper is cost-effective and accurate. Secondly, instead of spending money on training a fresh bookkeeper, an experienced outsourced bookkeeper will provide you effective bookkeeping straight up.

6. Contact Professionals

When we consider bookkeeping for a small business, there is a big chance that things can go wrong. In certain situations, the smartest decision is to contact a professional. Bookkeeping and accounting experts will help you in setting up your bookkeeping system in a way that errors and mistakes will be minimized. At times, they might prove to be costly, but mistakes can be a major damage to the business so they are a wise investment.

6. Practice Daily and Weekly Reviews

For a small business, it is not sufficient to check your bookkeeping records on a monthly basis. In order to stay updated on any changes going on in your business, you have to keep a track of your records on a daily and weekly basis. Being updated on a regular basis will also enable you to keep track of any current invoices, see all expenses, and understand your cash flow.

8. Save as Much Paperwork as Possible

Paperwork has a higher chance of falling prey to disastrous events. This can affect a business very negatively because, in case you have to prove your tax filings, your business will not have any proof. Alongside, cloud-based software enables you to stay more organized and keep important bookkeeping documents safe.

9. Consider Profitable Deductions

Tax deductions can majorly benefit your small business. Effective business owners have a habit of maintaining proper bookkeeping records in order to ensure that you get the most out of all tax deductions, enabling you to invest that money somewhere else.


Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.

 

 

Young troubled businesswoman with hands on head
Fixing things has never been easy, especially when they are totally messed up. When things reach this point with a business’ bookkeeping records, they have two options to decide the fate of the business. 1. Close down the business and file for bankruptcy if it’s a corporation. or 2. Uplift the image of the company from scratch with several revitalization strategies.

Why do Most Businesses Fail to Manage their Business Books?

Being an entrepreneur, you may be more excited about establishing your business and less excited about managing its back-office operations. Every entrepreneur starts out with the best of intentions to make their business successful, which hopefully will bring significant gains in return eventually. Quite too often, front-office responsibilities and busy schedules cause back-office tasks, such as bookkeeping and accounting, to fall to the back-burner. This creates a lot of problems for the business. You certainly can’t expect to put your business on the right track and earn significant gains if you lack the financial wisdom to tackle important aspects of business such as filing tax returns, debt repayments, financial forecasting, projections and more…

Bookkeeping may be an intimidating task for entrepreneurs. However, now they have so many options to manage their business books with online accounting services, automated software, etc. Since most start-ups and entrepreneurs lack the expertise to handle back-office operations, business accounting consultancy services can employ the best practices, tools, and techniques to provide a clear snapshot of cash flow and finances for better decision making. Gone are the days when businesses tended to avoid acquiring such services as they lacked professional audits and accountability, along with concealment of sensitive information. Now businesses have not only developed a faith in these companies but consider them a pivotal tool for their start-up’s success.

First Thing First—Hire a Professional Accountant to Balance Out Business Books

Back-office tasks of every business are complicated as they involve tax requirements, debt repayments, financial reporting and forecasting, vendor invoicing, management and other similar things. So, the first thing that must be done when the business books become redundant is hiring a professional accounting professional who will fix things for you. Getting a business out of crises, especially when it is embroiled in financial distress, is extremely difficult. Therefore, only a person with relevant skills and profound accounting knowledge can lift the business out of turmoil. This further intensifies the need for hiring a qualified and seasoned accounting and bookkeeping expert.

Separate Your Personal and Business Account

Studies show that most start-ups fail because they don’t keep their personal and business accounts separate. This means that, prior to filing tax returns and debt repayments, you will have to go through messy business books in order to find the correct amounts. By keeping your personal and business accounts separate, you will get a clear picture of your finances and cash flow, which means you will be able to tally all the sources of income and expenses.

Track Every Expense Incurred

You need to label and categorize each and every expense incurred in the past and make a comprehensive plan to deal with tax and debt-related requirements. Therefore, you must record every single transaction if you expect to avoid unnecessary income taxes. Sole proprietors can afford to record financial transactions manually, but corporations can’t afford to conduct such practices. Hence, they must use accounting software with a suitable capacity to record and track all sources of income and expenditures for better decision making.

Reconcile Your Business Books

At the end of the day, it is all about achieving a right strategic fit and balancing out your finances. You need to reconcile your business books with actual spending and expenses incurred for getting your business on the right track. Getting out of crises is not easy at all, especially when your business is at stake. Although reconciliation will likely take a lot of time, hiring a seasoned accountant and employing the best accounting practices, software and techniques, you can face-lift the image of your company and perhaps give an all new positive image to your company. Reviewing your finances and business books at least once a quarter can help you determine the financial health of your business for making better financial and business decisions.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.