There are many aspects to starting and running a business and keeping accurate records of all transactions is an essential requirement. Aside from the accountancy side, the only way to accurately assess how well you’re doing is by having all the figures in front of you, and if you are losing money, you need to know about it. It is difficult to focus on what seems like trivial matters when you are ready to take on the world, but you do not want to end your first year with a bag full of receipts and a bad memory. Start as you mean to go on, at least that’s what they say, and if you are about to launch your soon-to-be business empire, here are a few solid bookkeeping tips to ensure that your accounts are easily managed.
- Create Reports– Creating reports in business performance will help you to better understand the dynamics and will also allow you to identify weaknesses in your business. The reports might be in the form of ROI for marketing, or perhaps a projected year by year sales forecast.There are many ways we can make good use of graphics to represent business performance.
- Make Good Use Of Technology – The modern office might have a few pens stashed away in a drawer somewhere, as all their data is digitalised. Spreadsheets and databases that can be popped onto the screen at the speed of light have taken the place of heavy ledgers, and while we still use paper for invoices and receipts, its days are numbered. If you are looking for some help with your books, have a look at the EQ Financial tax accountant and bookkeeping Sydney entrepreneurs rely on.
- Get Into A Routine– Set aside 15 minutes at the end of the day and enter into your spreadsheets the data of exactly how much was spent on what, along with all income on that day. If you do this at the end of the day’s trading, it also gives you time to reflect on the day’s activities. Was there anything that could have been done differently? Did I achieve anything today?
- Professional Guidance – Most small business owners have a limited knowledge of bookkeeping, and the best course of action is to join forces with a local accountant, who will set up a basic accounting framework for you to follow. Time is money for accountants, and the longer they have to spend rifling through your paperwork, the more it will cost. Once your accountant has created a system for you to follow, his job will be so much easier, and you will also know exactly where you stand regarding the health of the business. There are some great tips for the young entrepreneur, which make for compelling reading.
The road to sustainable success is long and often uphill, and by keeping accurate records, you will always be aware of how your company is performing. Getting your accountancy right is essential from day one, and by using the above strategies, you will be able to hand your accountant a clear set of accounts.