The success of any small business relies heavily on the accuracy of the financial records you keep to keep track of all your business transactions.
To help you manage your finances effectively, we have put together a list of six bookkeeping tips you should consider:
Tip 1: Separate your business and personal finances
To make sure that your personal finances are kept separate from your business finances, you should open separate bank accounts and maintain separate credit cards. It’s important to have visibility over your business expenses and income versus your personal finances. This makes it easier for you to prepare your tax returns efficiently during tax time. Use Bookipi’s free mobile app expense tracker to get on top on your business and personal finances.
Tip 2: Keep detailed records
Record all financial transactions, including expenses and income, in a ledger or accounting software. It’s important to also maintain a record of documentation related to your financial transactions, including quotes, receipts, invoices, and other documents. This helps you monitor your small business cash flow so that you can make informed business decisions. Learn how to use the cash flow manager feature in Bookipi Invoice mobile app with our simple user guide.
Tip 3: Regularly reconcile your accounts
Keep a record of the balances of your bank accounts and credit card statements. Regularly reconcile your records with statements provided by your financial institutions. Identify any discrepancies to ensure that there are no bank errors and keeps your records accurate.
Tip 4: Track your expenses
Track all of your business expenses including office supplies, travel expenses, and rent. Using simple business expense trackers like Bookipi’s free expense tracker helps you monitor your cash flow. Quickly identify areas where you can reduce expenses and keep your small business in good financial health.
Tip 5: Set up a system for invoicing and payments
Ensure that your invoicing process is set up so that you can collect payments from your clients. By integrating secure card payments with invoicing, you save time and ensure that you get paid on time by your clients. Bookipi Invoice is the easiest integrated payments and invoicing solution. Learn how you can offer your clients the option to pay with a credit card in Bookipi’s mobile app and web.
Tip 6: Seek professional advice
Consider working with an accountant or bookkeeper to help guide you through the process of managing your finances. The advice and insights they can provide to you on financial planning, tax filings, and other financial matters can be extremely valuable.