For many business owners, keeping the books is just another thing you have to do that isn’t what you love or are skilled at. How do you keep track of it all? How can you ensure it’s accurate? What happens if it’s not? Is it time to start looking for bookkeeping services? Mesa small businesses, here are a few tips to help set your books up for success!
#1 Keep Business and Personal Expenses and Earnings Separate
Small businesses often start with a dream and a goal, not a bank account. Expenses of all sizes creep in, and can even occur unintentionally. You give the wrong card at the office supply store or take a client to coffee and accidentally use your personal card.
Then when it’s time for tax season, you have a bit of a mess on your hands. To have an accurate picture of your company’s cash flow and expenses, it’s important to adjust your records to accurately reflect transactions and use the proper form of payment when needed.
M&M Accounting LLC specializing in small business bookkeeping in Mesa can help you establish a system for spending and tracking.
#2 Digitize Your Records and Your Bookkeeping
Stacks of paper have been a staple in every functioning business for decades. However, with the software and technology available, it’s simply not necessary for bookkeeping services. Mesa small businesses should do their part, not only for the planet but to keep their finances organized and easily accessible.
Digitize invoicing, payroll, recurring payments, receipts, and mileage. Connect your digital files with reliable bookkeeping software, so all your financial records are in one place.
#3 Understand Monthly and Quarterly Bookkeeping Reports
Get to know your software reporting for small business bookkeeping. Businesses in Mesa should be checking reports every month and every quarter to get a clear picture of where their business stands, where they need to improve tracking, and if it’s time to recruit a professional.
Reports such as income statements and balance sheets help you understand the overall financial health of your business. Be proactive about learning them inside and out.
#4 Track Receivables and Payables
Keep records of when payments should be received and when they should be paid out. Create a payable and receivable calendar if your bookkeeping software doesn’t do this for you.
This will help you prepare for upcoming expenses and adjust any spending as needed. If you get too close to a low balance at certain times of the month, attempt to negotiate new payment dates that align better with your cash flow.
Tracking receivables will help you ensure you get paid on time. If not, establish a process for retrieving what is owed to your small business or automating direct payments.
#5 Recruit the Professionals for Bookkeeping, Mesa AZ Businesses!
As a small business owner, you probably didn’t open your company to become a bookkeeper. At M&M Accounting LLC, we’ve got you covered! From budgeting for future plans to tax preparation and legal compliance, the path to more time and energy to run your business starts with outsourcing your bookkeeping services. Mesa business owners, call for a free 1-hour consultation today.