1. Separate your business and personal expenses
Keep separate bank and credit card accounts for your business and personal expenses. The segregation makes it easier for you to keep track of your business finances. Very importantly, it will save you lots of time and efforts to obtain accurate tax-deductible expenses when filing your business tax returns.
2. Use a small business accounting software
There are many accounting software in the market. QuickBooks Online (QBO) is one that is widely-used by small businesses. It is cloud-based, meaning you can access your account as long as you've internet access. Moreover, you are also able to link your bank and credit card accounts to the accounting software, which will timely and automatically download your monthly bank and credit card transactions for reconciliations.
3. Reconcile your bank and credit card statements regularly
Time must be set aside to reconcile your books, at least once a month. Bank reconciliation helps to detect missing deposits and unauthorized transfers out of your account.
4. Organize your business documentation
Keep your business documents - invoices, bills, receipts, loan and bank and credit card statements in an orderly manner will provide ease of tracking in case of future references.
5. Follow-up on Invoices & Receivables
Keep a close eye on paying your bills and getting payments from your customers. Don't let your funds get tied down, especially when your customers are not paying on time.
6. Set money aside for major expenses and tax
The importance of cash flow for any business cannot be stressed further. Hence, a business owner must plan for expenses, especially taxes and large ticket purchases, such as acquisition of equipment for replacements and upgrades.
7. Engage an experienced, qualified bookkeeper -- is an investment
Having an experienced accountant or bookkeeper will save you lots of frustrations. You will have more time and energy to generate more revenue for your business.
As qualified accountants, we help our clients set up chart-of-accounts relevant to their industries. Very importantly, we update your books timely, so that you can use the accurate and insightful financials to make wise business decisions.