Ok, so there you are, facing the daunting task of building a bookkeeping system. You’re overwhelmed at the prospect of not getting it right…whatever that means!
Well as painful as it may seem, when starting off, it’s a great idea to build your bookkeeping system yourself. You’ll better understand the ebbs and flows of your business, along with the rhythms of your costs and expenses. The knowledge and appreciation you’ll gain about your business or organization will be invaluable as you make key decisions.
However, it’s vital that you set things up the right way. You don’t need a background in mathematics to get the job done, but you do need to pay attention to a few critical processes. Otherwise, you’ll have to deal with a lot of cleanup, which can be very expensive.
For instance, imagine you were to discover that a year’s worth of bookkeeping work was incorrect? You may have overpaid on bills, did payroll incorrectly, not charged enough for an expensive project, or improperly paid tax to the government.
Not to mention, you’ll probably want to rely on your financials to make decisions, so if your bookkeeping system has errors, you will miss out on valuable insights. Your data will have blind spots and your businesses’ or organizations’ full potential will not be realized. All of these issues would take time and effort to fix – time you should be spending on your business to help it grow.
We understand that there is a lot at stake when starting your own system. But it doesn’t have to be as intimidating as it sounds.
Here are 5 tips that will help your bookkeeping system started on the right foot.
Follow these, and you’ll reduce the risk of error and can gain sharp insights into the health of your business.
- Start with the end in mind. Thoughtfully consider what you want to gain from your bookkeeping system. How will your records reveal these insights?
- Separate your business and personal expenses. Open up a business account today which will only be used for business costs.
- Automate as much as you can. Your time is valuable. Let the machines do the redundant work. Quickbooks Online is a great product that features tons of automation.
- Reconcile your accounts at least once a month. Monthly insights are hugely valuable and you’ll keep on top of the work.
- Get some help! If this seems like too much, then hire a professional to help take the paperwork off your hands.
Want more in-depth information?
We’ve created a FREE extended guide called “10 Actionable Secrets for a Better Bookkeeping System.” We’ve poured our knowledge into it so that you’ll gain even more valuable insight into getting started on the right foot and avoiding any errors or additional costs.
Download Your Free Guide Today!