It’s not easy growing a small business, so pat yourself on the back as you wrap up 2013 and reflect on your business’ successes. Of course, 2014 is only days away and as a dynamic small business owner it’s important for you to examine and fine-tune your daily operations to make sure you’re delivering your products and services in the best possible way.
Keeping good books is one of the most important “behind the scenes” operations you can hone. ProLedge would like to encourage you to start the year off with these good bookkeeping habits:
Record your receipts and invoices in numeric order. This helps you maintain an audit trail, which ensures there are no gaps left unreported. If your receipts and invoices are all numbered, it’s easier to check whether a payment or invoice has actually cleared. When checks, receipts or invoice numbers need to be voided, these numbers should be duly noted and recorded.
Set “due date” alerts for payments and payables. Reminders of upcoming payments help you manage your cash flow and ensure these obligations are handled on time. Payments include payroll taxes, regular bills (such as rent and utilities), payroll, etc. Bill pay reminders help you avoid late fees.
Maintain consistent records. Your accountant will appreciate you keeping clean, consistent records. Finding a record keeping system and sticking with it throughout the year makes the process easier for everyone involved.
Keep daily records. It is best to record daily transactions. If you are using bookkeeping firm, ask them to explain what daily transactions you should record. Don’t let this pile up! Stay on top of record keeping chores. If you don’t have a bookkeeping firm, ProLedge has some of the best professionals in the business ready to assist you.
Keep proof of transactions. Receipts, paid bills, deposit slips, sales slips and invoices should be organized and stored for easy reference. As you deal with suppliers and customers, you’ll likely find these items are often needed for reference.
Keep track of bank account statements. Reconciling the bank statement is best left to a pro. This is the easiest way to keep accurate data or catch unauthorized activity. Keep all bank statements filed properly. Often, it is necessary to go back several months and verify that checks and deposits were made and when.
Maintain a petty cash fund. This is one area where many small businesses struggle – employees forget to turn in receipts and cash funds seem to dwindle or disappear. The goal of using a petty cash fund is to record small cash expenditures as expenses, in the correct time period, while tracking vulnerable cash balances. Create a petty cash system and stick with it.
Secure your paperwork. Whether you store your records at home, in a storage facility or at the office – Keep important records and documents in a safe, fireproof place. Use separate boxes for each year on record.
If you’re seeking a professional bookkeeping firm to assist you in these daily/monthly activities, call ProLedge for a free consultation. We offer exemplary service with the stability of a firm at the price of an independent bookkeeper. (877) 503-8607
We at ProLedge look forward to the opportunity 2014 holds and wish you and your small business continued success.