For small businesses, one of the most vital aspects of running the business is to have great bookkeeping practices. With a pristine financial record, you will better manage debt, determine the source of profits, and handle deposits and receive credit. Without proper bookkeeping, many businesses will go bankrupt before the business has had time to properly bloom. Mark Dicus & Company will share some of the best bookkeeping tips to help small businesses succeed.
Track Invoices & Payments
As a business owner, it is essential to monitor all of your company’s invoices from those that you have paid and those you haven’t yet paid. Particularly, the unpaid invoices can hurt your business’s cash flow. Nothing hurts a business faster than the interference of its cash flow. For businesses that order materials or products, make sure that all invoices are paid off before ordering more materials. Another type of invoice you must also monitor is the money owed to you or the business. For unpaid invoices to your company, create deadlines for each client that you extend vendor credit to. Failure to meet these deadlines means you can add a penalty charge. This will help prevent unpaid debts and allow your business to grow.
Divide Receivable Payments & Borrowed Loans
One of the leading contributors for a business to fail is poor management of funds. There are two different categories of funds: They are those that are received and those that are borrowed. It is important not to mix up the two different funds. You don’t want to leave debts unpaid and or confusion between borrowed loans and payments received. There are a number of different software programs or accounting services that can help businesses keep tract or their accounts with relative ease.
Weekly Bookkeeping Review
It is recommended for all business owners to do a weekly review of the books. Many only monitor their business monthly and sometimes, some will go far longer. This is a common mistake as adjustments must happen quickly when there is a financial loss in the business. By monitoring the business profits, debts, and activities, it can better help the business grow and make the needed adjustments.
Backup Small Business Data & Financial Records
It is also recommended for all businesses to make not just one financial record but two. Always backup and update your company’s data. Bank statements can be lost and computers can go down. Back up all financial records such as profits, statements, balance sheets, receipts, invoices and sales.
Bookkeeper Services in Walnut Creek, Daly City, San Mateo, Palo Alto, Mountain View, San Jose, Pleasanton & Greater San Francisco, California
Setting up your business can be difficult, especially when it comes to finances and accounting system. For a new or small business, it can greatly help ensure success by seeking a quality accounting service. They are not only trained in modern finances but also have software that makes it easy for a business to track its finances. If you are starting a business or discover it’s hard to find the time to properly monitor your business accounts, you can seek out professional accounting services. Mark Dicus & Company provides quality accounting, tax services, and business consultations to help ensure your business succeeds. Contact Mark Dicus & Company and schedule an appointment today!