One of the most important things you’ll need to do when starting your business is to make sure you keep an up-to-date and accurate bookkeeping system. Some people will forget about this (because it’s never the most exciting of tasks) but it is in fact what can really hurt you in the long run and prevent you from being truly successful. Here are a few suggestions on how keep your company’s accounting organized and in order.
Business and Personal – You’ll always want to be sure to keep your business and personal expenses separate from each other. Start by making sure you have a bank account which is solely for your business. This will allow you to see everything more clearly when you are depositing and withdrawing money for your business.
Accurate and Organized – Make it a regular task for you to record and update your bookkeeping information (either once a week or every other week). You’ll don’t want to let yourself fall behind on this because as more time passes it will make it more difficult to recall the reason for money going in or out.
E-bookkeeping – To make things easier for yourself it’s always best to use bookkeeping software for your business. This will allow you to pull up specific information about expenses or revenue very quickly and easily (and also comes in handy when tax season rolls around). One of the more popular software to use is Quickbooks but if you’re just starting out then we’d recommend trying Freshbooks. You can download a free version from the Freshbooks website which is great for new entrepreneurs.
Consultants – It’s always good to talk to a consultant about best practices for bookkeeping, or to even have them look over your current system. This can be a little expensive but we still recommend that you have someone look things over because a poorly organized system can be even more expensive later down the road.
If you’ve just recently started a business (or have been a long time entrepreneur) please write some suggestions in the Comments section about experiences you’ve had with your business bookkeeping.