\u2026 then this article isn\u2019t for you<\/b>. You can move on.<\/p>\n
However, on the other hand, if you:<\/p>\n
- \n
- Are you TIRED of working on things that don\u2019t make you any money<\/li>\n
- LOVE making your life simple<\/li>\n
- Want to focus on what is TRULY IMPORTANT<\/li>\n<\/ul>\n
\u2026.then stay put!<\/p>\n
We have 5 awesome tips for small business owners to simplify their bookkeeping. The benefits? More time, more money, and less stress.<\/b><\/p>\n
Ready? Let\u2019s dive in.<\/p>\n
1. If You Must Do Cash Transactions, Do Them Right<\/b><\/h2>\n
If possible, try to perform all transactions electronically. This isn\u2019t always possible, however. Sometimes cash payments are unavoidable. And cash transactions need a little extra TLC from small business owners.<\/p>\n
The Action<\/b><\/h3>\n
Unlike checks or online payments, cash doesn\u2019t come with a paper trail. That\u2019s why you need to create one for both your business and personal expenses.<\/p>\n
There are two ways to create a simple documenting system:<\/b><\/p>\n
- \n
- Use a receipt book to create a receipt for every cash payment. A receipt book makes immediate duplicate records – one for yourself and one for the customer.<\/li>\n
- Use technology<\/a> if you decide against carrying a receipt book around. Your cash tracking document or app will always be available<\/b> and keeps track of cash payments by connecting multiple devices such as your phone to your laptop.<\/li>\n<\/ul>\n
How it Helps<\/b><\/h3>\n
You no longer have to worry if you forgot to calculate one of your expenses. A receipt book or a cash tracking app simplifies your bookkeeping process. It keeps you from miscalculating your business expenses or misplacing your payments.<\/p>\n
2. Keep Your Business Accounts Organized<\/b><\/h2>\n
Sticking to a regular schedule is the best way for small business owners to keep their books and financial records up to date.<\/b><\/p>\n
A weekly schedule<\/i> will help you avoid costly mistakes since you only need to account for records within the last few days. You can catch a mistake early before a domino effect happens.<\/p>\n
The Action<\/b><\/h3>\n
Bookkeeping is simplest when done in bite-size pieces. Don\u2019t wait until tax time to throw a \u201cbookkeeping panic\u201d party. Stay organized by maintaining your bookkeeping.<\/p>\n
Set aside just one hour a week for routine bookkeeping tasks:<\/b><\/p>\n
- \n
- Balancing the business\u2019s checking account<\/li>\n
- Pay expenses and invoices<\/li>\n
- Reviewing payment records<\/li>\n
- Keeping expenses and payments categorized<\/li>\n
- File all documents and receipts<\/li>\n
- Compiling financial statements<\/li>\n
- Cross-checking receipts and cash flows<\/li>\n<\/ul>\n
When you\u2019re done with your checklist, it\u2019s time to relax! Your current records are up to date.<\/p>\n
![\"A](\"https:\/\/envoice.eu\/wp-content\/uploads\/2022\/08\/fce8992c-simplify-bookkeeping-processes-2-1024x683.jpg\")
Source: Pexels<\/figcaption><\/figure>\n How it Helps<\/b><\/h3>\n
It may be tempting just to let the papers lay where they drop when they hit your desk and \u201cdeal with it later.\u201d<\/p>\n
But it\u2019s not a good idea.<\/p>\n
Have you ever lost your keys in a messy house? You spend MORE time looking for them than if you had just taken the time to put them on the key hook next to the door. Not to mention all the stress of mindlessly searching yesterday\u2019s pants pockets.<\/p>\n
The point?<\/b> It may be a pain to document everything up front. But it will save a business owner so much time and anxiety later<\/i>, especially come tax season. Staying on top of your bookkeeping process will keep your books clean all year long and will make managing your business accounts feel easy.<\/p>\n
3. Keep Records of ALL Expenses<\/b><\/h2>\n
If you don\u2019t keep a record of all of your expenses, you\u2019re leaving yourself open to misplacing funds. Plus, you will be up a creek without a paddle come tax time.<\/p>\n
The Action<\/b><\/h3>\n
What\u2019s the number one rule of bookkeeping? Make sure that any documents of your financial dealings are recorded. This includes:<\/p>\n
- \n
- Invoices<\/li>\n
- Accounts Payables\/Receivables<\/li>\n
- Payroll records<\/li>\n
- Receipts of all<\/b> official business transactions<\/li>\n<\/ul>\n
In short, keep track of and document records of any transaction that involves:<\/p>\n
- \n
- Money<\/li>\n
- Time<\/li>\n
- Goods<\/li>\n<\/ul>\n
How it Helps<\/b><\/h3>\n
Here\u2019s a hard truth:<\/b> The IRS can audit you for UP TO SIX YEARS. So Uncle Sam will expect that you have stored records for the last half a decade when he comes knocking at your door. Maintaining a reliable account of debits and credits means you stay squeaky clean and won\u2019t always be looking over your shoulder.<\/p>\n
You will still need to file yearly taxes whether you get audited or not. It will be quick and easy for you<\/b> to prepare tax filing requirements at year-end and generate financial reports if you can record and efficiently keep track<\/i> of all these documents.<\/p>\n
Tip:<\/b> Stay organized and make an effort not to let records and transactions slip through the cracks.<\/i> When a receipt comes in, save it.<\/b> Create a filing system to store invoices, receipts, records, and any notes you\u2019ve made about purchases and expenses.<\/p>\n
![\"A](\"https:\/\/envoice.eu\/wp-content\/uploads\/2022\/08\/c173d54d-simplify-bookkeeping-processes-3-1024x683.jpg\")