Tips for bookkeeping as a small business accountant
With effective financial management, a small business is able to better understand where their money is going, and how much is going in and out; they can effectively prepare for future revenue and investments; and can create realistic financial goals. One step in handling your finances, is having a dedicated bookkeeper- which manages data entries, bank reconciliations, monthly reports, payrolls, accounts receivable, and accounts payable. We at M.A.S Partners, the leading small business accountants in Sydney Zetland, understand the importance of bookkeeping skills, and how it can lead to better management of a business’ finances, and have provided a list of tips and tricks which will hopefully help you develop these skills.
Learn how to use accounting software
Choosing the right software is highly important in organising all your business’ bookkeeping reports. It automates and streamlines time-intensive tasks such as data entry, bank reconciliation, and invoices. In doing so, it cuts labour costs, and decreases the risk of human error in your reports. Popular accounting software include XERO and MYOB. Most accounting firms work with XERO due it being more accessible and has more features, however MYOB has an easier learning curve. Regardless of which software you choose to use, it is important that you learn how to use it effectively, and that you keep all your accounting records on the software. This way, all your financial and accounting records are organised and kept in one place, to easily be analysed.
Regularly create reports
Although fairly obvious, regularly tracking your incoming and outgoing cash allows you to effectively perform financial check-ups and prepare for future changes. Be sure to have monthly check-ups, whilst also having an in-depth look at all your accounting and bookkeeping records of the previous quarter- ensuring to analyse recent trends for your business such as steady growth or decline in profits. In doing so, you are fully utilising your bookkeeping records by creating financial plans revolving around the trends of your business.
Frequently perform bookkeeping activities
Creating accounting reports is something you do not want to leave until last minute if you want it to be effective. Keeping up-to-date and organised with your books requires that you perform these tasks as often as possible- categorising every business transaction weekly or daily and reviewing your financial statements monthly. Many small businesses fail as they do not keep up to date with their records, and as such, when they create their financial plans, it is outdated and inaccurate.
Outsource your bookkeeping
Although many bookkeeping tasks you may be able to perform inhouse without much expertise, by outsourcing these tasks, you are better allocating your time and funds, and have more confidence in accurate bookkeeping reports. We at M.A.S Partners are small business accountants, who can handle all your bookkeeping needs such as quality control, financial reports, tax returns and payroll, whilst also providing business advice that will help you further develop your business. For more information on our small business accounting service, click here.