Yes, we know that bookkeeping sounds like a chore and you are too lazy to follow through. Well, you are not alone as most entrepreneurs would prefer to handle other responsibilities than this supposedly “mundane” chore.
But if you are a small business owner, it’s time you learn the basic do’s and dont’s of bookkeeping to keep your business afloat. Believe me, they aren’t that difficult to master.
Books are the foundation of your business’s complete set of accounts and transactions. And transactions must be recorded. The business is better off or worse off without them.
Transactions deal with everything from paying your employees, borrowing money to run your business and even buying products from the market to sell to your prospective customers!
Consider it as a journal of all your sales, inventory and credit. So entering the transactions in a correct and timely mechanism is of the utmost importance.
Here are some effective tips that i found helpful while grappling with the same woes as you:
Tip 1- Educate Yourself
Bookkeeping may seem like an overwhelming chore for the uninitiated but it may just feel tiresome because you are yet to be familiar with it. There are quite a few schools that teach basic courses in bookkeeping at nominal fees. If you do have that sort of free time at hand, i suggest signing up for one such course to grasp the necessary skills faster.
Tip 2- Pick the Right Software for the Job
Trying to keep the company’s accounting can be a tiresome job unless you have the right software backing your efforts. Softwares can help you log transactions, invoice customers and create reports with ease and flair. So, see to it that you pick the right software tools that can help you work things out.
Tip 3- Time to get Organized
Keep records of all transactions that you do. This may sound like a no brainer, but its quite complex and important. Different people resort to different techniques but the most basic part remains that you organize your data at least once a day.
It’s easy to be on autopilot when tossing cancelled cheques into the bin. But keep in mind that if something does go wrong, it’s you- and not the bank- who will be in trouble. Those cheques are as good as cash so keep an eye on them.
And of course, use a computer.
Tip 4- Hire a Professional help to Sort it Out
If it’s proving to be too much a bother for you, consider hiring an accountant or a professional agency that can take this important facet of your business of your hands and do what they do best- handle your accounts and transaction records. A professional help can always be equipped to answer any of your queries regarding your books and be at hand to review your records when the need arises.
If hiring a professional team seems out of depth in revenue, you can hire a college student majoring in accounting/bookkeeping, but be prepared for lack of experience.