When it comes to running a small business, providing goods or services is usually at the forefront of the day to day operations. A love and passion for a particular product or service is usually what inspires a business owner to start their own business. While businessowners are normally experts in their field of the goods or services they provide, behind the scenes there are many other requirements that must work together to make a business successful.
One of these requirements is bookkeeping and record keeping. Keeping a small business’s bookkeeping organised, accurate and up to date is essential. For this reason, it is encouraged to employ the services of a professional and qualified bookkeeper who are experts in their field and will support you to maintain your bookkeeping needs.
While there are numerous important bookkeeping tips to help your small business, read below to learn 3 tips courtesy of the team at FREED UP Accounting & Bookkeeping Solutions including:
- Keep receipts, statements, invoices, records and any other documents as proof of your income and expenses.
- Use real time software that gives you access to your financials and bank statements in real time.
- Ensure invoicing is up to date to help maintain good cash flow
Keep receipts, statements, invoices, records and any other documents as proof of your income and expenses
It is essential to keep track of all financials in your business. Have a system in place for keeping records of receipts, statements, invoices and other documents as proof of your income and expenses. Whether this system be paper based, online or a combination of both it is essential the system is organised and up to date. For sole traders, it is your responsibility to have a system in place and stay consistent with your record keeping. For those business’s with employees, if required, ensure they are following the same system of record keeping to maintain a consistent process and ensure all information regarding income and expenses is accessible.
Use real time software that gives you access to your financials and bank statements in real time
Your financial and bank records should be easily accessible as you may have to refer to them to make important business decisions. Investment-based decisions are especially dependent on the financial health of a small businesses therefore the financial position of your business must be clear and in real time. Gone are the days of waiting for a bank statement to arrive in the mail to know where you are at financially, technology has now allowed this to be available electronically and in real time.
Ensure invoicing is up to date to help maintain good cash flow
To be successful, maintaining a good cash flow is essential for any small business. While many small business’s goods or service may be paid for at the time of sale, for others the goods or service is provided before payment is made. If this is the case for your small business, have a system in place where invoices are raised and given to customers periodically. The sooner the invoice is issued, the sooner you can be paid. Keep on top of accounts receivable and have a system in place to have overdue invoices followed up promptly.
FREED UP Accounting and Bookkeeping Solutions in Western Australia are registered and certified bookkeeping experts and can assist to keep your small businesses bookkeeping accurate and up to date.
At FREED UP Accounting & Bookkeeping Solutions, our main principal, Naomi is a registered BAS Agent (#25959844) with the ATO. She is also a qualified Accountant with a Bachelor of Financial Admin (Accounting) and a member of the Institute of Certified Bookkeepers and the Australian Bookkeepers Network.
Our team are ready to get to work and can assist in the ongoing bookkeeping needs of your business. We proudly service all areas of Western Australia including regional areas. Call our team today on 0438 977 767.
Disclaimer: The information in this article is general information only.