Five Bookkeeping Tips To Help You Manage Your Small Business Finances
As a business owner, you know that your success is driven by transactions and how you manage your money. If you handle your finances and related aspects with care and precision, you should be able to meet your business goals and stay in line with tax laws. However, as your primary focus is your business, you may be a little lost when it comes to managing your finances. To help you stay on track, SamKabwe Consulting, CPAs has put together five bookkeeping tips to help you manage your small business finances.
Tip #1: Keep your personal and business finances separate
When you manage both of these finances separately, you reduce calculation challenges when recording your business accounts. Preparing your business taxes is also easier this way, and you have clear proof to support your claims for deductions.
Tip #2: Use technology to automate wherever possible
Using technology when managing your finances will help you reduce the time spent on this task. It will also reduce errors and ensure that records are updated promptly. For the best automation technology to incorporate in your business, talk to your financial expert.
Tip #3: Review your finances regularly
Taking a look at your finances frequently will give you an idea of where you are and where you need to be in revenue and expenses. With a clear understanding of your profits, you can even prepare plans for expansion or the deployment of a new service.
Tip #4: Maintain records and receipts for all business expenses
It is crucial to maintain all of your business receipts and records in the event of an inquiry from the CRA (Canada Revenue Agency). With all of your documents in order, you can prove that your accounts are correct. Similarly, in the event of accounting mistakes, you can have them corrected with their documents for proof.
Tip #5: Monitor accounts receivable regularly
If you have already offered services to your clients, make sure to track the payments coming in and update your accounts accordingly. By monitoring the money coming in, you are aware of what your business is actually making. In case of delays, you can inform your clients appropriately and collect all money that you are entitled to.
For more tips and tricks on how to maintain your small business finances, reach out to us at SamKabwe Consulting, CPAs. We are professional chartered accountants in Victoria, BC, and we focus on helping you sort and track your finances so that you can do what you do best. We are committed to providing professional and quality services. Whether you are looking to organize your books, become compliant, or need to know the results of your business periodically, we have the experience to get the job done.