Having strong financial management practices in place is imperative to the success of all small businesses. Strong bookkeeping practices provide business owners with a strong insight into their company finances. This allows you to detect cashflow problems before they become a bigger issue. Additionally, having good insights into your business’ finances helps you to identify trends within your business. Having strong bookkeeping practices in place will help save you time and money in the long term.  

Bookkeeping Tips for Small Businesses   

We have outlined tips which will help small businesses keep track of their financial situation.  

Separate Business and Personal Finances 

A mistake that many business owners make is not separating business and personal finances. This can cause huge headaches in the long run. Open a business bank account as soon as you begin your business and set up a separate business credit card. This separates your accounts and makes your business appear more professional. Additionally, it helps speed up the process of filing taxes as you do not need to spend hours manually sorting business and personal expenses. Many challenger banks now provide business bank accounts, read more here.  

Automate When You Can 

Entering data into a spreadsheet and reconciling numbers manually is extremely time consuming. Using cloud-based bookkeeping software will save you and your business hours. Cloud-accounting software’s allow businesses to sync their bank accounts providing accurate and up-to-the-minute records. Cloud-accounting software also means your data is backed up safely and off-site.  

Work with a Professional  

Working with a professional accountant will help your business ensure all of your bookkeeping is up to date and accurate. A professional accountant will advise you on which cloud-accounting software will work best for your business and set this up correctly for you. An accountant will also offer you advice in relation to your business, helping you avoid pitfalls and grow in size.  

Perform Regular Financial Checks  

If you put off bookkeeping for too long, you will end up with overdue invoices or figures that do not add up. Working with your books weekly will help you make sure everything is up to speed. The use of cloud-accounting tools also streamlines these processes, making it easier for you to keep track of payments.  

Monitor Employee Hours with Time Tracking Software  

Cloud-based time tracking software allows employees to clock in and out using their smartphones, tablets, or computers. This allows business owners to automatically track overtime and paid leave. Choose one that works with your bookkeeping software, and this will streamline your payroll process too.  

Record Business Expenses Carefully  

To avoid paying too much tax on your business profits, make sure your record all of the expenses that qualify for tax relief. Use of cloud-based accounting tools allows you tag expenses which will make this process easier for you.  

Strong Bookkeeping Practices

Good financial planning is all about long-term planning. Strong bookkeeping processes will help your business plan for seasonal lulls and expensive periods. As your business grows in size, analysing performance and filing taxes becomes more complicated. Similarly, as a business owner you may not have the time to manage your finances. Outsourcing your bookkeeping services can help you solve this problem. Working with a qualified accountant provides assurance that your financial affairs are correct. 

Get in Touch

If you are interested in outsourcing your bookkeeping services, get in touch with Gallagher Keane. We provided cloud-based accounting to many small businesses. Find out more about our services here.