7 Accounting Hacks For Small Business Bookkeeping

7 Accounting Hacks For Small Business Bookkeeping

Introduction: How does tax time appear to you? do you remain calm and organized like it is just any other calendar year? Or do you go about running here and there in mad panic to sort out all paperwork? It is no secret that bookkeeping and accounting are two important tasks that small businesses face. Depending on your business need, you may need a mix of both small business bookkeeping and accounting to avoid all hassles during tax seasons.

#1: Categorise Expenses Anyone who has spent hours for categorizing business expenses must appreciate this point. Setting up proper categories for small business accounting ahead of time acts like a huge saver.

Several accounting software allows you to set your categories in the setting, meaning when expenses come in, you need to assign them in categories. It is easier than trying to remember something later. So you need skilled accountant for assistance.

#2: Store Receipts Immediately Most businesses tend to be clear on income, if you are running online businesses where payments come in and are credited automatically through payment software. But it is different when monitoring expenses. If you are digging through boxes, wallets, drawers, or looking for business related receipts, you must know there is a better way to stay ahead of them. Accounting software lets you take photos of receipts and attach them to your bookkeeping. So, you can categorize them easily.

#3: Connect Bank Accounts and Credit Cards The secret to hassle-free bookkeeping and accounting is automating many functions. It means you must take advantage of features in the accounting software like ability to connect bank accounts and credit cards. The functionality allows transactions to be pulled through and attach it to your small business accounting software. To make this effective, you need to make sure the business transactions go through your business accounts and not personal transactions.

#4: Reconcile Weekly (Minimum) It is all about staying in good habits. As you know many business owners procrastinate over bookwork since they are not fond of it, but if you set aside small amount of time each week for reconciling, it isn’t a big deal at the end of the financial year. It helps you pick up errors as close as possible to the time it happened- it gets complicated if it isn’t solved. The right small business accounting expert can help.

#5: Automate Invoicing Requirements When doing business across borders, the chances are you may come across different invoicing requirement for every country you have customers in. What is the plan to deal with sales tax of different countries? What about local rules for what to include in invoices? There are considerations since you don’t want to end up in position where you are being penalized for not following proper procedures.

#6: Hire a VA It is recommended that you keep a close eye on your accounts and books, but if you are too stretched out to do it yourself, hiring small business accounting experts can help. They know what it takes to offer you amazing accounting services to keep your business in good condition. They take care of your reconciliation with oversight, freeing the time for other things.

Jarrar & Associates

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