For many small businesses, bookkeeping can become overwhelming and tedious if it’s not done correctly from the beginning. However, you can save yourself a lot of trouble with these five tips for better bookkeeping for small business. By following these easy steps, you’ll quickly be able to keep up with your bookkeeping and ensure your business stays on the right financial track.

1. 5 Tips for Better Bookkeeping for Small
Businesses

2. 5 Tips for Better Bookkeeping for Small
Businesses
1. As the owner of a small business, you’re
faced with many decisions each day to help
your company grow and succeed, from
marketing strategies to hiring decisions to
financial management techniques.

3. 2. But one of the most important aspects of
running a small business is often
overlooked—keeping meticulous records
and maintaining good bookkeeping
practices.

4. 3.This article will walk you through 5 tips to
help you improve your bookkeeping
process, including how to navigate bank
reconciliations and why it’s important to have
someone else double-check your work!

5. Do it monthly
1. Set aside time each month to reconcile your
accounts. This will help you catch any errors
and ensure that your books are accurate.
2. Keep track of all income and expenses. This
includes money received from customers, as
well as money spent on business expenses like
inventory, rent, and utilities.

6. 3. Separate personal and business expenses.
This will make it easier to track your business
finances and avoid mixing up your personal
and business finances.
4. Stay organized. Use a system that works for
you, whether it’s paper or digital, to keep track
of your bookkeeping records. This will make it
easier to find information when you need it.

7. 6. Maintain consistency in your accounting
methods. Make sure that you consistently use
the same terminology, style, and principles
across all bank reconciliations and financial
statements.
5. Automate what you can.

8. Do it manually (it's faster!)
1. Decide what system you want to use to track
your finances. This can be as simple as a pen
and paper, or you can use software like
QuickBooks or FreshBooks.
2. Know what needs to be tracked. This includes
income, expenses, invoices, payments, and
anything else that affects your bottom line.

9. 3. Set up a system for tracking income and
expenses. This can be as simple as creating a
spreadsheet, or you can use accounting
software.
4. Reconcile your bank statements monthly. This
ensures that your books are accurate and helps
prevent fraud and mistakes.
5. Review your financial statements regularly. This
allows you to catch errors and identify areas
where you can improve your bookkeeping
system.

10. Update your books daily
1. Get into the habit of updating your books
every day, or at least every couple of days. This
will help you stay on top of your finances and
avoid any surprises down the road.
2. Keep track of all your income and expenses, no
matter how small. This will give you a clear
picture of your financial situation.

11. 3. Stay organized by separating your business
and personal finances. This will make it easier to
track your spending and keep your books in
order.
4. Reconcile your bank statements monthly to
ensure accuracy and catch any errors or
fraudulent activity.

12. 5. Use accounting software to automate
bookkeeping tasks and save time.
6. Hire a professional bookkeeper or accountant
if needed to handle complex financial tasks.

13. Use software to make your job easier
1. Use accounting software to save time and
ensure accuracy.
2. Keep track of your expenses and income so
you can budget properly.
3. Organize your financial records in a way that
makes sense to you.

14. 4. Make sure to reconcile your books on a regular
basis.
5. Understand the difference between accrual
and cash accounting methods.
6. Hire a professional bookkeeper if needed.
7. Stay on top of your bookkeeping so you can
make informed business decisions.

15. Make reconciliations easy by staying organized
1. Keep good records from the start. This will
make reconciling for bookkeeping for small
business much easier and less time-consuming.
2. Know what needs to be reconciled. This
includes understanding what transactions need to
be included and in what format.

16. 3. Stay up-to-date. Reconciliations should be
done on a regular basis, at least monthly if not
more frequently. This will help ensure accuracy
and prevent any surprises down the line.
4. Set aside time to focus solely on the
reconciliation process. This way you can avoid
distractions and better focus on the task at hand.

17. 5. Take your time and be thorough. Review all
transactions and supporting documentation
carefully to ensure everything is accounted for
correctly.

18. Contact us
Call us: 1300 049 534
Website:
https://reliablebookkeepingservices.com.au/
Email:
enquiry@reliablebookkeepingservices.com.au