When you have good bookkeeping methods your relationship with your accountant is guaranteed to greatly improve. You never have to worry about losing information because you’ve got backups of everything. Managing your books in a great system should be really easy and it should be straightforward to put a little bit of information in and get a lot of information back out on a day-to-day basis. One of the best features of a great business bookkeeping system is that after you’ve put information in, you automatically get really useful numbers back. No need for duplicate entries! Everything is easy to findīecause everything is in perfect order it doesn’t take long at all to find any information you need – no more hunting for hours to lay your hands on a particular document.
In a great bookkeeping system, once you’ve entered a piece of information in one place it gets used everywhere. You never have to enter the same information twice In order to improve your current bookkeeping method, let’s take a look at a few characteristics of a really great system. Understand what a great small business bookkeeping system looks like How often do you invoice your customers and how often do you track what you’ve spent out of your own pocket on business costs? If you don’t do this frequently you might forget important details. If you needed to find a particular piece of paper, would it take you a few minutes, or would it take you hours? Invoicing and expenses Review how easy it is for you to find information. For example, if you put all your paperwork into a file which you keep in the basement, what happens if the basement floods? Are you able you recreate the records and do you have backup copies of the paperwork stored elsewhere? Organisation Make a note of how you store your business records and think about whether or not you’re confident that they’re safe and secure. You’d be surprised how often these two figures are different things! Security and backups of your business records Think about how often you keep track of what’s coming into your business and what’s going out of it – what have you earned and what have you spent? Bank statementsĬonsider how often you check what’s actually in your bank account against what your books say is in your bank account. Here are some things you should check: Incomings and outgoings Grab a pen and a piece of paper and make some notes about what your financial systems look like right now. The first step is to review your current situation.
#SIMPLE BOOKKEEPING SOFTWARE FOR HOME ONLY HOW TO#
Here’s a simple guide on how to vastly improve the way you manage your books and the good news is it will only take you an hour a week. Want to get to a really good place with your small business finances? Sounds like you need a great bookkeeping system. How to create a great bookkeeping system in just an hour a week! About the author: Emily Coltman, FCA is the chief accountant for FreeAgent, who make online accounting software for small businesses and freelancers.
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