Keeping up with the cash flow for your business is essential if you want to get and stay profitable. You do this primarily by tracking the money in (sales) and the money out (expenses). This makes sense, of course, but it isn't always easy to achieve - especially if you are a small business owner and must wear the "bookkeeper cap" to accomplish it. And getting behind in bookkeeping tasks can create an overwhelming accounting mess that could threaten the long-term health of your business.
Here are a few bookkeeping tips to help you get a handle on your business cash flow and business accounting records:
1) Find a software product (such as Quickbooks) to keep up with accounting transactions, preferably one that includes cloud-based backup and storage options. Automating your bookkeeping tasks will help to minimize the time needed for repetitive entries and reduce the likelihood of error.
2) Create a correct Chart of Accounts to properly categorize items in your accounting system using these main 5 categories: Assets, Liabilities, Owner's Equity, Income, and Expenses. Having everything placed in the correct category from the very beginning allows you to generate accurate accounting reports and reduces the number of adjustments that will be needed when tax time rolls around.
3) Develop an accounts payable practice that ensures on-time payments to vendors and creditors to avoid fines and penalties.
4) Maintain accurate and timely payroll records including: paycheck details, tax payments, and W-2 forms.
5) Reconcile bank and credit card accounts monthly to keep up with sales and expense records.
6) Keep up with all tax payments for the business including payroll taxes.
7) Utilize your accounting system to generate financial statements to help analyze business activity, especially these 3 key reports: Profit & Loss, Balance Sheet, and Statement of Cash Flows.
8) Hire a professional bookkeeper. If using these tips to set up or improve your bookkeeping system seems overwhelming or impossible, then consider this final tip and bring in a professional. This can be done through a full-time or part-time employee, or the bookkeeping function can be outsourced to a professional accountant which gives you the ability to only make a payment for the services required.
The accounting professionals at Lindemeyer CPA know how difficult it can be to set up a good bookkeeping system and find the right person to take care of this accounting function in an efficient and affordable way. We offer outsourced bookkeeping services that can be utilized to maximize your accounting features while minimizing the cost for this vital part of running a successful business. Download our free bookkeeping guide to learn more about how we can partner with you to take these tasks off your plate and help you to achieve your business goals of success and profitability.
Here are some additional tasks our bookkeeping staff can assist you with:
- General ledger prep and management
- Accounts payable and receivable
- Cash flows
- Bank account reconciliation
Lindemeyer CPA is a full-service accounting firm to meet all of your accounting needs. So you can have one professional accounting firm taking care of your bookkeeping tasks, payroll administration, tax preparation and payments, and more - all on an as-needed basis.
Just contact us to start a conversation and to get more information on the bookkeeping and other accounting services we offer.