Bookkeeping isn’t Sexy but is fundamental
Bookkeeping isn’t sexy but it is a fundamental part of your financial process as a business. Without it, you won’t understand the true current financial health of your business.
Inputting your financial transactions into some form of record-keeping system is also a mandatory commitment if you’re a registered business and paying goods and services or value-added tax. Bookkeeping provides you with a historic breadcrumb trail of your finances allowing you to track your cashflow, revenues and profits over a given period, available for reporting and accessible whenever you need them.
But how should the bookkeeping process work, in an ideal world?
Here’s some easy steps to follow.
- Record all transactions immediately – recording both your income and expenses as soon as they occur is VITAL.
- Categorise transactions accurately – when recording transactions, make sure you’re accurate and categorise each item correctly so you can track your spending and income more accurately.
- Reconcile your accounts regularly – regular reconciliation of your transactions (both income and expenses) against your bank statement and other financial statements is a key part of your bookkeeping.
- Scan all financial paperwork – this gives you a digital copy of all the paperwork that relates to your income and expenses.
- Use a cloud-based accounting system – bookkeeping doesn’t involve books (ledgers, in accounting-speak) anymore – you can use cloud-based accounting software to upload your scanned transactions and access your financial data.
- Outsource your bookkeeping to a professional – yes, you can do your own bookkeeping, but there’s a LOT of value to delegating all the hard work to a professional bookkeeper. If you don’t have the time or expertise to manage your bookkeeping yourself, outsourcing is a smart move.
With today’s cloud accounting software, bookkeeping is a far less tedious task than it used to be. But it’s still a regular, time-consuming job that can take you away from running the business. Let us do the books, so you can get back to talking to customers and building your business.
Get in touch to discuss our outsourced bookkeeping.
Cloud accounting software suppliers such as QuickBooks or Xero provide excellent services
