How To Deal With Bookkeeping For Your Business
As a small business owner, you need to wear several hats. Your tasks will include marketing your brand, hiring the right people, and maintaining relationships with your customers. On top of all this, you need to keep track of your profits and business accounting. Bookkeeping is probably not your passion, but keeping your books organized is crucial for your small business. Proper bookkeeping leads to financial growth, translating many separate numbers into a comprehensible statement of business profitability.
Typically, bookkeeping involves recording, summarizing, and analyzing the financial transactions of a business. This can be difficult in itself, but there are other common financial obstacles small business owners must overcome. To help you out, JB Training Services Inc. has written down three easy ways to deal with bookkeeping for your business. The purpose of this blog is to help all the small to mid-sized business owners, with one to ten employees in Alberta, who struggle with the administrative side of their business.
Doing the bookkeeping yourself can be quite the challenge. Not only do you have to know how to “keep books,” but you also have to know how to use the software (such as QuickBooks, Xero, Wave), you have to know how other programs might link to it (such as PayPal, Shopify, DEXT, etc.), and what the government rules and regulations might be. When it comes to bookkeeping, there are three options: ignore it, do it, delegate it.
If you “Ignore It”- You may choose to have your accountant complete it at the end of the year when they file the taxes. However, you will be missing out on the power and magic hidden within the bookkeeping information, and their fees will be higher.
If you “Do It” - The quality of your bookkeeping and the information you get from it will be subject to your skill level. Doing a great job will provide you with much of the information you need to manage your business, as well as keep your year-end accounting costs down. Doing a poor job may lead to the loss of your business and higher accounting costs.
If you “Delegate It” - You may struggle with hiring someone with the right qualifications, who is trustworthy, reliable, and contributes to your business growth. However, when you find the right person, they can become a great asset to your business by promptly providing the information you need, keeping an eye out for opportunities and risks, and freeing up your time to focus on areas you love and excel in.
Importance of proper bookkeeping:
a. It marks progress towards your goals.
b. If you don’t have any goals, you can use the Financial Statements created with bookkeeping to help create goals.
c. It shows you opportunities to save taxes.
d. You can also use the Financial Statements to help manage “Cash Flow.”
Most business people don’t like handling their company’s bookkeeping as they have so many other responsibilities they would rather prioritize. Because of this, they often postpone getting the financials completed each month and may also wait until the end of the year to complete the bookkeeping. However, accurate bookkeeping is fundamental for your business to profit, and it is something that requires constant and regular attention. To ensure your business runs smoothly, you need to schedule the time to get the bookkeeping done. As boring as it can be, you need to make sure you put in all the time and effort so that you can have an accurate and efficient bookkeeping system.
Here’s how you can efficiently manage your bookkeeping:
1. Make this a fun time and reward yourself for doing it.
2. Go to a restaurant where they make you feel welcome and work on your bookkeeping over a leisurely meal.
3. Book a day or two at a great hotel. Take your bookkeeping with you and work on it in a great setting. I’ll often go to Banff or Lake Louise to work on business and do a bit of hiking.
4. Have a “bookkeeping party.” Get together with some other friends/business owners. Work on your bookkeeping together. Even better, have a weekend planning session with complementary businesses you’re working with. For instance, if you run a web-design business, connect with a business owner who does photography, is a “virtual assistant,” or does business consulting. Include referrals to each other as part of your business plan.
5. Have a process and follow it! It is essential to have a process in place that is written down so you don’t have to guess what to do next. I often tell my students to sort it, code it, post it, reconcile it, review it, adjust it, and report it. Use the process as a checklist with instructions to remind you what to do next.
If you are dealing with bookkeeping challenges, you can reach out to me at JB Training Services Inc. I am a Certified Professional Bookkeeper, a QuickBooks Certified ProAdvisor, Xero Certified Advisor with a resume that includes over thirty years of training and experience in a combination of accounting, training, and outdoor adventures. As a qualified bookkeeper, I can help you to handle all the common bookkeeping problems and much more, in turn allowing you to control your monetary tracking system effectively, without any pressure. I can assist you in knocking over the challenges and staying on track with the financial goals of your business. I offer services like training, bookkeeping, and outdoor activities to clients all over Alberta and British Columbia. To learn more about the services I offer, please click here. To get in touch with me, please click here.