28 Feb Ideas to make your bookkeeping take less time
If you’re a small business owner, you already know that time is money. If you’re going to maximize your profit, you’ll need to be as efficient as possible in every aspect of your business, and that includes your bookkeeping endeavors. Here are some ways to do small business bookkeeping in less time that you need to know about in order to improve your operations.
Get Digital, Fast
Maintain as many records as possible in digital format. It only takes a few minutes to scan in receipts, but you won’t have to worry about filing them away once you are done. You’ll also be able to find them much easier whenever they are stored electronically as well. Consider using a software program that will allow you to digitally scan receipts into your accounting software in order to save even more time.
Purchase everything with a credit card
Better yet, get rid of most of your receipts to track by using a credit card and a tool like Expensify to keep track of all your purchases, and they’ll create IRS friendly receipts for anything under $75 dollars.
When you purchase supplies for your business with cash, it’s much harder to keep up with receipts than it would be if you paid with a credit card. Not only that, but if you’ve made personal and business-related purchases in the same transaction, you could have a hard time finding the receipt later if it is placed in your business files.
Keep separate accounts for business and personal spending
Combining your personal and business accounts makes for tedious work when it comes to separating bills and receipts. You’ll be able to keep all your financial records much better organized whenever you have separate bank and credit card accounts that you use for business purposes only.
Set aside regular time for reviews
By keeping on top of your bookkeeping, you can avoid getting behind in your work and needing to spend endless hours catching up. If you outsource your accounting functions, talk with your bookkeeper on a regular basis in order to ensure you are up to date with the status of your transactions.
If you’re having trouble keeping up with bookkeeping, you can either try these tips or contact us. We handle bookkeeping tasks for businesses of all sizes, and would welcome the opportunity to serve you as well.