Skip to main content

Business bookkeeping – Tips for entrepreneurs

By 09/02/2017October 30th, 20184 Comments
Business Bookkeeping

Business bookkeeping – Tips for entrepreneurs

In the surge and energy of beginning a new venture, it’s easy to forget the significance of good business bookkeeping.

At the point when this happens, entrepreneurs regularly get a reality check in the later days of the business. This can arrive in an assortment of ways, including:

You get an expensive surprise at tax time,
Inventory has been “vanishing” without you knowing,
Employees are miss-categorising transactions,
Your costly accountant sends you a weighty bill for the time required to “tidy up” your books.

At the point when issues happen, it isn’t so much that you set out to do things wrong; it normally simply “happens” in light of the way your business has developed. Frequently personal money and business money gets intermixed. This can be hard to deal with. A friend of mine is right now looking at a screen on his accounting application that is requesting that he classify more than 800 transactions since he utilises his own bank account for business.

Accounting software

There are numerous great internet accounting software services you can utilise. However, the question is which transactions are we discussing? Personal or business? As it were, will you be setting up categories and entering in every one of the transactions, or will you have a business bookkeeper do it for you?

Consider these fundamental territories that fall into the domain of independent business bookkeeping:

Accounts receivable and payable,

What number of those does your business have? The more that depict your operation, the more prominent your requirement for an expert business bookkeeping service. Sage, Quickbooks, Kashflow and our favourite Xero are all great options for a business bookkeeping software. However, if you outsource your business bookkeeping, it’s likely your bookkeeper will give you a recommendation.

Similarly as with everything, business bookkeeping is a feature of your business that you need to set up appropriately from day one. However, in the event that you missed that open door, consider bringing a bookkeeper on board ASAP and have that expert settle the issues and get your bookkeeping running smoothly.

It will cost you somewhat more initially, yet in the long run the investment will be justified. Your stresses, and potential risk will be significantly decreased.

Karl Newman

Author Karl Newman

Hi! I'm Karl. I'm the founder of Direct Peak, a 100% Xero cloud accounting firm. I help business owners get complete financial clarity giving them decision making confidence.

More posts by Karl Newman

Join the discussion 4 Comments

  • Bookkeeping is important for entrepreneurs to manage work. It will help them to see the overall status and background or the work done everyday. This is very helpful to everyone especially the budding entrepreneurs.

  • The importance of bookkeeping is to keep track of everything. This will serve as your journal in everyday’s event in business. You will have an idea of what’s happening around and if you need to adjust something or not.

  • Thanks. Can you specify which bookkeeping software suits for small business owners?

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.