10 Bookkeeping Tips & Goals for 2016

This year, make precise and up to date accounting a goal for your business.  By keeping track of this important aspect of your business, you’ll be able to make smart decisions based on the level of success your business is experiencing.  Keeping track of your records is not only important legally, it gives you a up to date pulse on your business.  When done well, you can watch for patterns in your business throughout the year and plan for the future based on past trends.

Here are ten goals to keep in mind for 2016:

1. Go Paperless Invest in some of the great accounting software (QuickBooks) out there and make use of cloud-based options that allow you the security of knowing that your information won’t be lost in a technological failure.  Accounting packages for businesses can assist you streamline the various processes such as tracking invoices, deposit slips and check printing, etc.
2. Business and Personal Finances Are Kept Separate You’ll save a lot of headaches and time by keeping these two completely separate.  Beyond that, you’ll have a much better idea of how your business is doing and be able to take an appropriate amount home as a salary.  By knowing exactly how much your business earns, you’ll be able to plan business investments and expenses much more wisely.
3. Plan for Expenses From past years’ bookkeeping you should have a basic idea of what you spend for office supplies, subscriptions, utilities, repairs, inventory etc.  Plan for any major expenses in the coming year by including them in your budget.
4. Keep Payments Up to Date  Avoid low credit ratings by cleaning up invoices each month. Make sure you always pay on time.
5. Monthly Tracking Be sure to reconcile your back account with your paper records each month.  Go through receipts and be sure they match up with withdrawals and deposits to be sure everything makes sense.
6. No Cash By avoiding cash, you make sure there’s an easy to see records for all expenses and payments.  Using cash may mean receipts get lost or you may not remember exactly what was purchased.
7. Monthly Accounts Receivable By making sure you receive payments from clients, you’ll avoid problems with your cash flow.  Make sure you ask for payments on a monthly basis to avoid surprises later or even forgetting about debts from clients.
8. Set Aside for Taxes When looking at expenses, it’s a smart idea to budget in your estimated tax costs. That way you won’t have surprises when April comes around.
9. Get expert advice Getting expert, professional, qualified advice can not only be helpful in general but keep you safe from any legal troubles. Bookkeeping and accounting can get complicated – use a pro!
10. Speaking of… find a helpful professional By using a bookkeeper or accountant to check through your books on a monthly basis, you’ll help make sure things are accurate and well documented.  By doing this periodically, you’ll avoid year-end surprises and have time to fix any problems in a timely manner.  A good advisor will also be able to assist you in your bookkeeping strategies to make sure that you’re doing things as efficiently and accurately as possible.