Many business owners identify with the guilt of not keeping a proper record of expenses, bills, receipts, and invoices. It’s easy to fall behind on your bookkeeping because the natural thing to do is spend time on activities we find pleasant and enjoyable. Unfortunately, ignoring your books leads to disorganization, late fees, long overdue client balances, and dreaded bill collectors.
If this situation sounds familiar, you’re not alone. The best solution for you as a small business owner is always to stop “burying your head in the sand.” You are not doomed to failure no matter how far out of hand things have gotten. Taking control of your books is a matter of organization. Remember, there is always someone out there who actually likes bookkeeping if you would rather assign the task to someone else.
This brief slide show you are about to watch gives you an easy five step process which can serve as the foundation of all of your bookkeeping. This method works for receipts, bills, bank statements, and any important financial documents. Every small business (or household for that matter) needs a system of record keeping in place because money is the lifeblood of your business! Download the full and detailed report at the end of the presentation. Thanks for watching!
Bookkeeping for the Small Business Owner in 5 Easy Steps
1. for the
SMALL BUSINESS OWNER
in Easy Steps!
Image Credit: bookpals.net/contact-us/owl-on-books/
RECEIPTS
INVOICES
BOOKKEEPING
5
BANK STATEMENTS
2. Pick Your Tracking Method
Tracking method is a matter of
personal preference, but it’s important
to reconcile your books at the end of
each month to catch potential errors.
1
BY MONTH
January
February
March
April
May
OR
http://info.milestoneadvisors.net/blog/bid/170352/Segregation-of-Accounting-Duties-Cash-Receipts
BY EXPENSE
Office Supplies
Meals
Travel
Postage
Advertising
3. Think about how you prefer to organize
accounting records, receipts, bank & credit
card statements, invoices, bills, and
financial statements.
2 Choose Your System
Paper
Electronic
and/or
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4. Gather Your Toolkit
Get into the habit of storing all accounting
related activity with a consistent system.
Your toolkit will help you stay organized,
making it easier to locate items when you
need them and fix reconciliation errors..
3
Labeler
File Folders/Jackets
Scanner
Binders Software
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5. Make an Archive
Check with your country’s regulatory agencies to
determine how long you must keep your accounting
records. At the end of the year, determine what
information to keep and what to shred. Then, transfer it
to a folder, external hard drive and/or cloud solution for
long term storage.
4
Password protected
cloud storage
Water-proof, fire-proof,
lockable file cabinet
Remote backup onto
external hard drive
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6. Get the Right Help
Be honest with yourself. If you are not
good at bookkeeping or you do not have
time to do it, then outsource or delegate it
to someone with specialized knowledge or
training. Above all, value your time.
5
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8. Remember, a good bookkeeping system ensures you do not waste
valuable time and money searching for misplaced information.
http://www.gwarlingo.com/2012/rachel-perry-welty-transforms-clutter-into-art/Equilibria, Inc.