Many times Bookkeeping errors if addressed early can avoid significant headaches down the road. Entrepreneurs are usually excellent at their craft because they sincerely love what they do, yet many times small business owners forget that running a business also involves maintaining proper accounting records as well as performing the actual work. Especially during the startup phase, business owners are entirely focused on running their business and are less concerned with the day to day record keeping. Unfortunately, this mentality only leads to issues down the road, and it is not uncommon to meet with clients that have not been keeping records for six months or a year after starting their business. Without proper bookkeeping a small business cannot understand how well they are growing and progressing, French Accounting Firm Spira Twist offers the following five accounting advises startups .
Separate personal and business transactions
Most businesspeople ignore this tip when they run a new business. To achieve this, open a separate bank account for your business, this helps produce a clear audit trail of your business transactions. This also reduces chances of confusion and also helps the business from spending its resources for non-business transactions.
Synchronize your bank statement
Ask your Financial Institution to synchronize your bank statement cutoff period to the end of each month, doing so will make the recording and reconciliation of your financial transactions much easier. Also, consider synchronizing your statement cutoff period for all your business credit cards allowing a business owner to have a clear cutoff of all financial transactions on a monthly basis.
Keep updated records
Maintain your records updated, consider hiring a Bookkeeping Services If you do not have the time or passion for keeping your financial records. Today you can hire an independent bookkeeping service at a fraction of what it would cost you to hire a full-time or even a part-time bookkeeper. Without proper accounting, a business owner cannot evaluate the performance of their business and hence cannot determine whether he is moving in the right direction or not.
File important documents
File all necessary receipts, copies of Bank Statements, invoices, and bills. Filing helps to provide a clear audit trail of all business transactions, which is important in the event of an audit. Filled documents are also important as they can be used for future reference.
Secure your financial records
Keep all your financial records safe, perhaps consider storing all information offsite in the event of a fire or disaster. Maybe think about investing in a commercial-grade digital scanner that can scan all your financial records, and then store the information on a backed up and secure server. This allows for easy retrieval in the event you lose your financial documentation.
By taking the proactive step of appointing an accountancy firm for your business, you can provide your company with the necessary edge achieved by up-to-date money saving expertise and practical financial support, giving you the time to focus your creative energy on expanding and maximizing your businesses potential