Anyone who has ever started or worked for a small business knows everyone is expected to wear many hats, but when you’re concentrated on operations, sales, and keeping the lights on, proper and effective bookkeeping can often take a backseat to more pertinent issues. This leads to unnecessary troubles during tax time, but with a few smart decisions and changes to your methodology, you can streamline your bookkeeping process and free up more time to focus on other issues.
1. Keep It Simple, Keep It Separate
You already have a list of expenses and you’re probably painfully aware of their impact on your bottom line. By categorizing them alongside your sources of income and keeping that list up-to-date, you’ll have a better visual, basic understanding of how much money you’re bringing in and where it’s going. Divide each section into subcategories and structure the document to your own personal preferences. Commit to a single ledger or Excel sheet to keep everything under one roof and easily accessible or your system will break down.
2. Stick to a Routine
Set aside 15 minutes each week and sit down with your finances, looking over the incoming and outgoing funds over the last seven days. Don’t let other projects or tasks intrude on this period of time – this is a key moment of reflection to help you gain insights about your business and will help you keep everything organized when tax time rolls around.
3. Save Smart
Saving for the future isn’t just a way to set your mind at ease, it’s crucial when the IRS comes knocking or you need to replace an important piece of hardware in a hurry. There’s not much exciting about diligently saving your money, but when it comes to small business expenses, there’s no wiser course of action.?
4. Ask for Help
No matter the extent of your bookkeeping needs or expertise, it’s important to have a professional ally for reference, advice, and assistance with complex tasks beyond your capabilities. For small businesses on a budget, Honest Buck is the perfect partner for full service or basic bookkeeping and CPA services at an affordable, predictable price.
To learn more about our process or services, contact the team at Honest Buck by using the contact form or giving us a call at 206.533.7097.
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