Brighter Books for a Better Business!

Written by: Maria Veronica Postanes
Written by: Maria Veronica Postanes
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Whether you are doing your own bookkeeping or you are having a professional do it for you. It’s best that you know the basics of how to tidy your record keeping.

Most business owners get overwhelmed with invoices, receipts, and statements which leads to a bad habit of not recording accurately. As everyone in the business is looking for growth, learning, and understanding how to correctly record transactions gives integrity to your books which will help you figure out if the business is profitable. Make sure your books are all neat and tidy!.

5 uncomplicated tips to guide you with your bookkeeping approach: 
  1.  Know the Basic Accounts for your Business.
  2. Do a Financial Health Check!
  3. Have a secured record-keeping
  4. Leverage Technology.
  5. Ask help from professionals in handling your taxes.
  1. Know the Basic Accounts for your Business.
    Asset - This is the resources owned by the business. Examples are cash, investments, accounts receivable, inventory, supplies, land, buildings, equipment, and vehicles.
    Liability- It’s the legal financial debts or obligations that arise during the course of business operations. Examples are Loans, accounts payable, mortgages, deferred revenues, earned premiums, unearned premiums, and accrued expenses.
    Owner’s Equity- This represents the owner's investment in the business minus the owners draw or withdrawals.
    Revenue- is the income that a business has from its normal business activities. It is normally the sale of goods or services.
    Expense- It’s the money spent or cost incurred in an entity's efforts to generate revenue.

    Net income means the Gross revenue less the total expenditure.

  2. Do a Financial Health Check!

    Have a close look at your accounts and find out which ones are tidy and what accounts are messy so you can
    start putting an effort to clean it up. Determine the state of your financial affairs. Do you have a steady flow of
    income? Or is your cash balance growing? Then that means your financial health is in good condition. If it’s the
    other way around, you can cut on expenses, create a budget you can stick to so you can pay down your debts.

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  3. Have a secured record keeping.

    You don’t want to lose invoices and get in trouble with your auditors. Proper safekeeping of your receipts and invoices makes you more compliant!

  4. Leverage Technology

    You might be an excel wizard or good in maintaining hard copies but as your business grows, Bookkeeping may
    get complicated and it may require more time having single transactions recorded in multiple accounts. There is
    various Free and paid accounting software that saves you from the hassle of keeping all your transactions
    recorded fast, easy, and reliable.

    Check our blog that will show you a Free record-keeping tool that is safe and efficient. 
  5. Ask help from professionals in handling your taxes.

    All business owners can take charge of their taxes without knowing that it could be cheaper if they hire a
    professional to do it. Tax professionals or accountants definitely know the ever-changing tax law. They can tell
    you which deductions you can claim and how you can lower your tax rates without breaking the rules.

Let's Wrap it Up!

Bookkeeping is your business’s best friend. It will tell you not just the good sides of the business but it will also
show the worst part of it. It also helps you which part of the business needs more effort and which ones are no
longer needed. Bookkeeping tells you everything you need to know about your business to give you a good
overview of your financial standing and a wide-angle of the business’s strengths and weaknesses so you can plan
for better and bigger business

Get in touch and let's see
how we can build a brighter future together

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