There are many hats that small business owners are constantly wearing. This is especially true in the beginning. It is also true that in those beginning years of your business, you are more capable of wearing many hats and wearing them well. However, when your business starts to take off and growth starts to truly happen, it can become more difficult to do it all yourself. Bookkeeping is one of those parts of your business that can be difficult to keep up with as it starts to grow. Propel Your Accounting is here to share some tips to help you keep your financial records straight as a small business owner.
How to Keep Better Accounting & Financial Records
There are all sorts of records and financial statements that need to be kept as a small business. Here are some tips to help you keep it all straight:
– Document Management: There are many documents that you need to keep track of for your business. It is important that you incorporate a document management system to help you keep track of these increasing documents and files. Many businesses choose to do this digitally.
– Back Up & Secure: The last thing any business owner wants is to lose documents because of a fire, natural disaster or some other problem. You need to have more than one copy of all your important documents as a safeguard.
– Understand the Lifecycle: There are some documents that you will keep for longer periods of time than others. Some documents you need to keep for as many as 7 years before discarding them. Understanding what you need to keep and what you don’t is important.
– Yearly Records: If you keep track of your record digitally, it is important that you keep these documents organized by year. You should be starting a new folder for each calendar year. This will be one way to keep things organized.
– Bank Reconciliations: You want to make sure that you have records for everything that your business does. Doing a monthly bank reconciliation helps you better understand your financial situation and can help you find any errors in your records.
Outsourcing Bookkeeping
As you can see above, it can be a tall order to handle your own bookkeeping for your small business. This is why many business owners turn to Proper Your Accounting to take care of it for them. When you rely on us to handle your bookkeeping, we will ensure that your accounting and financial records are properly maintained and recorded so that you have a better understanding of your financial situation. It can be extremely helpful when tax season rolls around as well. When you leave it up to us, it takes all the stress of keeping accurate records away from you so that you can focus your attention elsewhere. Call us today!
