Simplifying Your Bookkeeping

We know bookkeeping can be stressful and tedious. Taking care of your bookkeeping is much easier when your tasks can be broken down into smaller and more manageable pieces. That’s why we’ve created a list of tips to help you break down your monthly finance tasks so that they are less overwhelming. Keep reading for some help on the best ways to simplify your bookkeeping!

Record Everything

First and foremost, be sure to record every sale, expense, and invoice. Tracking these documents is a key factor in managing finances and is necessary for accurate record keeping. It is also important to categorize your records by document type and year. We recommend keeping records up to six years back in case the IRS audits you. Overall, having documentation of all of your business transactions that are easily accessible will help prevent errors down the road.

Reconcile Often

Another tip is to regularly reconcile your accounts to confirm everything matches or quickly catch any discrepancies or issues. We advise comparing your statements to your records at least once a month so you can pinpoint any problems, account for all transactions, and know exactly where you stand financially.

Stay Organized

Try to keep your bookkeeping documents as organized as possible. Sort your documents by group and file them according to date. Monitor your cash flow to ensure you can pay any upcoming expenses and pull reports regularly to stay on top of your profits and losses. We also advise keeping your finances separate from your business finances for many reasons. When your accounts get intertwined, sorting through and identifying each transaction requires more time and effort. Staying organized and consistent allows for a seamless record system, and you will be less likely to make mistakes.

Establish a System

To be as efficient as possible, establish a specific system you follow each time you tackle your bookkeeping. Automating things like payroll or invoicing can help prevent you from missing a deadline and give you more time to focus on other aspects of your finances. You should also form a detailed filing system and keep a physical and digital version of your files. An efficient system is a great way to divide tasks and keep things structured when managing your bookkeeping.

Consider Outsourcing

If you have implemented all these ideas and still feel swamped and overloaded with your bookkeeping – it may be time to consider outsourcing. Documenting your finances is important but can be difficult while running a business. There are so many nuances and details to remember regarding bookkeeping. When you outsource your financials, you can trust that everything will be balanced, compliant, and done without error.

Warren Accounting Group provides professional bookkeeping to all kinds of businesses. Our ability to tailor our services to fit the needs of your specific business means that we can accommodate any requirement or request. We can handle the ins and outs of bookkeeping so you can focus on your business’s growth. Contact us today to speak with one of our team members: https://www.warrenaccountinginc.com/contact/.