How to Get Serious About Bookkeeping at a Small Business

Posted on: 12 August 2021

Over the life of a small business, there can come a point where you have to get serious about bookkeeping. If your business has reached that point, it's important to understand that getting serious is a process. You can work with this checklist to make sure you're doing justice by your operation's bookkeeping needs.

Ask for Professional Help

Even if you don't have a constant demand for small business bookkeeping services, a professional can help you in several ways. First, they can assist you with initially setting up your books. Second, they can contribute on a monthly, quarterly, or annual basis if you need someone to reconcile accounts and take care of the paperwork. Third, they can answer any questions you might have as issues come up.

Use Software

Modern technology makes small business bookkeeping vastly simpler than it once was. While you'll have to invest a bit in installing the software, you'll benefit immensely in the long run because you'll be able to make entries, check the books, and produce reports in a matter of seconds. Likewise, the bookkeeping software can connect with tax systems to speed up that process, too. If you need to export or print a report, the software will make it a breeze.

Before you choose a software package, discuss your need with your small business bookkeeping services provider. They can help you explore the available options. Also, they can point you toward the system they'd prefer to use so you can both be on the same page.

Adopt Standardized Practices and Terms

Whenever two people look at your books, they should agree on what they're talking about. A professional can help you build the vocabulary you need to talk seriously about bookkeeping. Likewise, they can help you to identify industry-appropriate practices for bookkeeping at your business. You can then implement these practices across your business, ensuring ideas line up properly when two parties are looking at them. Also, standardization will make it easier to discuss bookkeeping with outsiders who use the same practices.

Reconcile Your Books Regularly

Every bit of data in the business universe undergoes a degree of drift over time. This is normal, but it can compound into a mess very quickly. You need to reconcile your books with regularity.

This means sitting down and making sure the bookkeeping lines up with what else you know. For example, your books should line up with the money you have in your accounts. If you take payments on a daily or weekly basis, it's best to reconcile your books once a month. Business with less frequent collection schedules should still reconcile their numbers at least quarterly or annually.

If you need help with these tasks, contact a company like COR Bookkeeping and Business Consulting.