How Do You Do Simple Bookkeeping for a Small Business?

Managing a business is as important as assuring the proper tools for a machine. Many small businesses find it difficult to manage their account which often leads to a crisis for that business. QuickBooks is one of the most popular accounting bookkeeping services that is specifically used by small and medium-sized businesses. 

You can easily benefit from its features and manage your account online at a reasonable price. The QB also lets you outsource accounting as that helps in saving as much as 40% of costs since you don’t have to pay for training and other non-essential expenses. 

In today’s blog, we will be giving you some tips using which you can do bookkeeping for your small business.

Basic tips to do bookkeeping for a small business using QuickBooks

• Create a Business account-You can find yourself in a lot of trouble if you don’t manage your business and personal funds separately as that would make it difficult for you to keep track of your account’s transactions. Opening a new account, you can deal with your business and personal dealings separately that makes it easier for you to manage your QuickBooks with relative ease as you can find the financial information with ease.
• Set a budget for tax purposes-In order to save yourself from a huge tax outburst, you can also try to save a bit of money in case you are using a savings account to help ease the pressure of your mind off getting hit by a pile of the bill all at once.
• Keep your records organized-You might feel agitated by a cluster of unorganized records when it comes to bookkeeping.  You can save a lot of your valuable time if you store all the records clearly and neatly. This will also help in times of desperate needs like when you are on the brink of approaching a deadline. Make sure that organizing the records is not a one-time affair for you.
• Keep track of your expenses-You can easily keep track of your expenses and keep them together in a single place just by using a business credit card. You can also try to categorize your bills as that will make it even easier for you to track your expenses. For instance, if you have to attend phone calls for a long period, then at one point you can calculate the average call duration as well as the cost of that call.
• Maintain your records daily-If you are unable to keep up with your daily activities of business funds then it is going to be very difficult for you to track the financial condition of your business altogether.  Make sure that make a definite system that helps in tracking your daily records as it will also help you with your tax returns.
• Leave an audit trail-It gets a lot easier to manage your records only if you make sure to leave an audit trail for all of your financial activities. This means that you can easily resolve an error just by retracing your activities with the help of invoices.
• Manage your receivables-Customers who delay their payments are never good for business as it can damage your cash flow severely. Keep track of who owes you how much money and try to get the money as soon as you can as the longer they owe you, the more damage your cash flow takes.
• Keep a check on tax deadlines-Set reminders for yourself to make sure that you are well ahead on your taxes without making any mistakes. Keeping records also makes it a lot easier for you to avoid unwanted penalties.

Using QuickBooks for your accounting makes it quite easy as accounting on a spreadsheet can be time-consuming and is also prone to errors, unlike online bookkeeping. Also, it makes room for one less person on your time as offline bookkeeping in excel requires a human to do it. You may also need to teach him “excel“, something that does not happen in the online scenario. You will also find it quite hard to manage the accounting part once your business grows.

These are some of the things a small business should keep in mind when they try bookkeeping via excel or they can opt for a better option in the name of QuickBooks instead.

For any further queries, you can visit the QB website.

Recommended: https://we-consent.org/how-much-do-you-need-to-open-a-td-bank-account/