New Year Bookkeeping Tips from Oregonized Accounts
Bookkeeping for your business is not an easy task. Sometimes, it becomes difficult to keep an eye on your business’s financial situation. Follow these bookkeeping tips to start your 2021 right! We have compiled a list of ideas and strategies to begin the new year with proper bookkeeping techniques.
Here Are 5 tips
For your bookkeeping this 2021:
For your bookkeeping this 2021:
Get organized with your books! Do you know where your invoices are? Do you have a place where you keep your receipts? Can you easily remember where you placed the specific information you need? If your answer is no, then you should think about spending some time getting organized. It is just the first week of January, and it might be a bit slow for your business. Take this opportunity to get organized and compile all your accounting information. If you have manual books, try to migrate these into a spreadsheet so you can look at what you need under just one file.
You should also know if your bank and credit accounts are reconciled. This will give you the feeling of having a fresh slate for the New Year. All of your 2020 accounts should be settled.
You should also know if you have any tax payments due.
2. Keep Things Separate
Never mix your personal and business finances. Always keep them separate. You do not want to spend hours and hours trying to figure out which portion belongs to what. If you commit to separating your business and personal expenses on a regular basis, your end of year accounting will be a much easier task. Stay on top of it and don’t let the receipts pile up. Later on it will be more difficult to remember which expense belongs in which category.
If you know what you will be spending on, such large recurring expenses, you can set aside the money for it. Best practice is to plan ahead so when the expense arises, you will not be panicking or thinking about where to get the funds. Check the things you need to spend on, like repairs, office supplies, inventory, and many more. Keeping track of this data year to year will help you budget and predict your monthly payments due.
You should also monitor your accounts receivable bi-weekly or monthly. By doing this you keep track of the money that your clients owe you. Without knowledge of your receivables, your income, profit, and revenue will drop. Being aware of your receivables will help you project your cash flow.
5. Go Digital
Try getting bookkeeping software if you already have an excel spreadsheet for all your accounting information. Sure, spreadsheets are very helpful, but having bookkeeping software will make things even easier. You can see your overall financial status, record all your transactions, and have an accounting history. You can make more informed decisions by seeing your entire financial picture at once. You can take a look at everything without opening multiple tabs. With just one click, you see exactly what you need.
If you follow these tips, bookkeeping for your business will be an easier task. You can now focus on essential things like ways to increase your profit. Remember that good bookkeeping means better growth for your business.
If you own a small business and are wanting to grow and expand, you should consider hiring a bookkeeper for 2021. Our team at Oregonized Accounts would be happy to take care of all your bookkeeping needs! Call us today to schedule a free consultation.