Small business bookkeeping deadly sin #2: Not doing the books often enoughKelly
A bad habit that many small business owners admit to is that they do not put time into doing the books very often. Sometimes this stretches for months at a time and culminates at tax time. However, a regular bookkeeping system can provide you with benefits that you would otherwise miss out on.
Bookkeeping can be an important asset for your business. It can put your business on a successful course by helping you make those important decisions. A yearly look over the books would mean that you don’t see all the important information that they contain and would mean that it is too late to solve potential problems.
Another benefit of doing the books regularly is that you will know how much profit your business is making. By making financial reports you can track how well you are progressing in relation to your business’s budget and goals.
We understand that this is not the best part of running your own small business. After a long day you don’t want to have to plug away at bookkeeping. But by realising what an asset having up-to-date books can be, you can treat it as a priority and an opportunity to progress your business.
A method for making it easier to set aside time, is to use a small business accounting program that is simple to use. This will save you time and get rid of the headache that bookkeeping can cause.
Cashflow Manager makes the whole process easy. It is not designed purely for accountants, but for small business owners too. It is based on the manual cashbook method. Just enter the amount of money received into the correct column. Then when you are making a payment, enter than amount in the appropriate column for that expense. Easy as.
If relevant, Cashflow Manager will make your Business Activity Statement, including calculating your GST. This is ready for you to submit online. Cashflow Manager will also help you ensure your bank statements and records are balanced.
So keep the creditors at bay for only 15 minutes a day, with the Cashflow Manager bookkeeping system.
Click here to read the introduction to “The 9 Deadly Small Business Bookkeeping Sins… And How You Can Avoid Them”
Keep a look out for ‘Deadly Sin #3’