Accurate Bookkeeping & Accounting for Small Business
- Published: Thursday, 26 October 2017 12:52
Bookkeeping isn’t everyone’s favourite part of running a small business. However, it’s vital to keep accurate and timely financial records to ensure your business succeeds.
While there are hundreds of complicated accounting programs and online resources, accurate recording and bookkeeping should be a start to finish process. If you haven’t set up a basic bookkeeping system, periodic income and expenditure summaries (whether daily, weekly, or monthly) can often become confusing and overly complicated.
So Why Is Accurate Bookkeeping and Accounting So Important?
Guesses and estimates have no place in the realm of reporting. If you want to get a clear and realistic view of your business, every step of reporting must be precise and accurate. Accurate bookkeeping and accounting will ensure you:
· Know Where You Stand Financially
While small business owners may have trouble finding time to produce detailed statements each month, the information it provides can be very useful. They give you a detailed understanding of your current financial position so you can accurately plan for the future. You should know the following at all times:
· How much money you currently have in the bank
· What you owe your suppliers
· How much money is owed to you
· Have Customers Pay on Time
By keeping accurate records of customer details and payment dates, you’ll have all the required information to get paid on time. It’s also important to provide customers with a detailed copy of their invoice for their records. This will ensure there are no disputes when it comes to paying or collecting payment.
· Informed Future Planning
Accurate accounting will give you a solid foundation to plan your short and long-term business goals. Without a precise foundation, your future planning will likely end up in unexpected turmoil.
· Save Time
· Meet Legal Obligations and Requirements
Once you reach tax time, you will need copies of all income and expenses for the entire year. Without accurate bookkeeping and accounting, you’ll be having to spend days if not weeks chasing information and old documents to ensure your annual taxes are accurate and accountable.
How to Report Efficiently and Accurately
From start to finish, your overall reporting system should be organised and accurate. It’s vital to put the systems in place to make this so. Here are some ways to ensure your reporting is always up to date and accurate.
1. Use Custom Invoice Books
G Force Printing’s custom invoice books can be modified to include all required information from your clients. This will make it much easier to input the information into your business management system, saving your business time and money.
You can include details such as:
· Full name
· Email address
· Phone number
· Address or PO box
· Reference number
The No Carbon Required (NCR) pads come with detailed invoice numbers to help you keep accurate records of every transaction. G Force Printing will also make sure you never have a double-up of records.
2. Keep Up to Date
Don’t let your bookkeeping fall behind. Put a system in place to ensure all transactions are accurately recorded and categorised. If you're finding it difficult keeping up to date with daily records, it might be worth entrusting it to a registered bookkeeper.
3. Invest in A Business Management System
To gather detailed critical information fast and efficiently, you should invest in a business management system. You can tailor the system to match the needs of your business allowing you to more efficiently plan for the future.
Although keeping up to date with all your bookkeeping and account can be a challenging task, it’s a vital efficient business practice. Start with getting the basic invoicing right before implementing a more advanced system.