Bookkeeping may not be an exciting task for everyone, but it’s essential to running your business well. With all the many roles you need to fulfill as a business owner, it might seem daunting to have to worry about bookkeeping, as well.
But don’t worry! Here are some tips to help you make sure your bookkeeping is done properly, no matter how busy you get.
As in all business decisions, success begins with a plan. And having a plan to guide you will help you keep up with your bookkeeping.
The start of a new year is the best time to make and execute a plan for the rest of your year. You’re fresh from resting during the holidays and are energized and ready! It’s also wise to have a plan before any of the holiday rushes start, well before Valentine’s in February or the tax season in April
Making a plan doesn’t need to be a scary task. Simply list down what needs to be done and set a reasonable schedule to hit these goals. If possible, assign staff to help get these targets done.
Track Down and Collect Debt
Now is a great time to collect outstanding debts. Doing so will help you have enough funds for the coming months. You never know when you need to spend on miscellaneous expenses during these days! Additionally, collecting debts now frees up your time to focus on other tasks.
Set a Budget for the Year
The best time to set a budget is after computing how much you’ve made in the last months, like at the start and in the middle of the year. Knowing how much you have to work with will let you allot a reasonable amount for your expenses, both planned and unexpected.
And, of course, the most important thing is sticking to that budget. Don’t overspend; you’re only going to regret it later when you do your bookkeeping!
Go with the (Cash) Flow
Bookkeeping involves analyzing your cash flow. If your business is more than a year old, you’ll want to compare last year’s cash flow before you set a plan into motion.
Did you spend more than what you should have last year? Were there any missed opportunities that you wished you would have made? Identifying these issues will help you come up with better strategies to pursue for the months to come.
Check Your Inventory
Always make sure to check your stock. Having a full inventory gives you fewer problems to solve in the future, because you’re always ready for whatever challenges will arise. Take this time to focus on storage needs, as well. You want to make sure that your inventory is safe and secure!
This is also where having a budget comes in; make sure you always have enough funds to restock your inventory, so you never run out of products in the middle of the year!
Plan Your Investments
It’s always a good idea to have a plan for your investments, even if you don’t accomplish all of them within the year. If you want to buy more storage space, send your employees to seminars and training, or plan an office getaway, now is the time to list those goals down.
With your cash flow as a reference, you can decide to set aside a certain amount in order to save up for these planned investments.
Keeping up with your bookkeeping gives you fewer headaches. By not cramming your bookkeeping, you can stay updated on your finances and make smarter financial decisions in the future.
Have any more bookkeeping-related tips? Sound off in the comments below!