March 31, 2020

5 Simple Bookkeeping Tricks for Small Businesses

Small Business
By: Ronald B. Allen

5 Simple Bookkeeping
Tricks for Small Businesses

As a small business owner, you are forced to wear multiple hats. If you’re not an accountant, those tasks can be the last thing on your mind. However, if you don’t manage your
debt, receivables and marketing expenses, your company will fail before you have time to shine.

You can save your business by implementing a few simple

1. Bookkeeper or DIY Accounting

Many business owners feel they must have their hands in every aspect of their business to keep cost down. However, sometimes outsourcing can help you stay focused on more pressing business needs, such as sales. To start, think about hiring someone part-time or a freelancer. Hiring someone in this capacity will keep the cost down while still getting the job done.

2. Keep Funds Separate

Most small businesses need financial funding for startup capital, marketing expenses, or for the trivial things during day to day operations. Make sure loans do not appear as receivables. For accurate reporting, these funds must be placed in the appropriate categories.

3. Keep Daily Records

Remember, if you do not keep accurate daily records, you will have no idea about your company’s financial condition. While it sounds simple, many small business owners fail to comply with this simple bookkeeping rule. There are many ways to keep track of expenses, but whatever method you choose, stick with it. Once you have a system in place, accurate record keeping will become only a fraction of your day.

4. End of Month Bank Cutoff

At the end of each month match your bank statements up with other monthly reports. Synchronizing you monthly records can make your life a little less stressful and help you track expenses.

5. Prepare for the Worst

One of the worst things that can happen to a small business is an IRS audit. Make sure you have a system in place that allows you to retrace your company's financial steps quickly. This means keeping invoices and checks in numerical order, not skipping check or invoice numbers and most importantly keeping your business and personal bank accounts separate. If you cannot go back a year and reconstruct your company’s finances, you are not leaving an adequate trail.

Exigo Business Solutions Can Help

Exigo Business Solutions, based in the Kansas City metro | Providing QuickBooks Consulting, Bookkeeping/CFO services, and Accounting Technology Solutions by a team of
using our experience of working with small businesses to positively impact your bottom line. As an Intuit QuickBooks Solution Provider, we are experts in implementing and troubleshooting QuickBooks. Visit our or give us a call at (816)394-6818 for more information.

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