Here at Chromium Bookkeeping we want to be able to help small business owners do the basic bookkeeping themselves, you don’t need to be a pro with numbers to get your bookkeeping organised. In this article we have put together some top bookkeeping tips for small business owners;
- Plan for Major Expenses
If you plan for major expenses you will be less likely to miss payments, business opportunities or constant fishing around for payments that you had forgotten about. If you have major expenses coming up, list them on a calendar; add in seasonal ups and downs of the year onto the calendar to ensure that these major expenses can still be afforded.
- Track Your Expenses
Making sure you track all your expenses will ensure that you don’t miss any tax write-offs, having a company credit card that is only use for business expenses can really help you track the money you are spending. Paying on the company credit card and getting used to keeping receipts will help you keep of track on the money you are spending on work items. Take time to jot down plans for the week, including things like business lunches, coffee meetings, networking events and such like as this will help you substantiate your outgoings for your tax records.
- Record Your Deposits
By recording your deposits correctly you will be less likely to pay taxes on money that is not classed as ‘income’. Whether you choose to do this with notepads, an Excel spreadsheet or a bookkeeping application doesn’t matter – just make sure you keep a record of your deposits properly.
- Keep ‘Tax Money’ Aside
Arrange a time on your diary when you will put money aside for your taxes, put the tax deadlines on your calendar with added prep time to ensure that when the date to pay your taxes comes you are prepped and ready and the money is waiting to go out. Make sure you pay your taxes on time to make your life more stress free.
- Check Your Invoices
Bills that are not paid to you on time will hurt your cash flow; it can be a good idea to outsource the job of keeping your billing tracked to someone, like a bookkeeper. They can then put a process in place with you to decide when you will issue the second invoice, a phone call or any penalties.
If you are keen to hear more about how you can improve the bookkeeping process within your business give us a call – we are always happy to offer advice, support and guidance.