OUR TOP 10 BOOKKEEPING TIPS
Bookkeeping is imperative to businesses as well as individuals. This involves the process of analyzing, recording and deducing all financial dealings and transactions. Bookkeeping plays a big part in all aspects of accounting processes.
The duty of a bookkeeper is to produce financial statements to make it easier for an accountant to execute legal tax management. A Bookkeeper must provide an accurate record of finances in order to sustain the success of a business as well as comply with the law. A business must submit by law an accurate and up to date financial statements to ensure that the business pays the necessary taxes and dues. It is the bookkeepers job to ensure that all financial transactions are properly and timely recorded. The bookkeepers job is crucial to the well-being of a business. Here at Teva Bookkeeping Solutions, we can help you with all your bookkeeping needs. Call us to know more!
Tips To Great Bookkeeping
Whether you do your own bookkeeping or hire a bookkeeper, it is important to follow these few tips to ensure proper bookkeeping:
Choose the best bookkeeper – if you are hiring a bookkeeper, you must choose the most skillful and competent bookkeeper. It will save you stress, avoid significant financial instability and legal complaints in the future. A good bookkeeper must possess the following skills:
- He must be able to set up accounting systems and software correctly
- Can enter all transactions accurately
- Can accomplish checks, resolutions and end of year processes with ease
- Is fast and efficient with legislative necessities and management output
- Commence all duties and compliance with payrolls
- Can deliver general business administrative support
Use the right accounting system – using cash-based or accrual-based accounting can be two examples of choosing the right accounting system. It will depend mainly on the type of expenses or payments a company has. Cash-based is accounted according to the cash input or output right before the transaction takes place, while accrual-based is accounted when a transaction is happening.
Maintain daily records – this is important to avoid the build up of records, or any forgotten records. Once a transaction is complete, it is best to record it automatically.
Carefully handle and review checks correctly – it is best to scan through every check again to ensure proper accounting. Double checking wont do any harm.
Getting bank statements monthly – bank statements are an important part of a business, so a good bookkeeper must secure one every month to check all inputs and outputs of the company.
Always leave an audit trail – keeping a track record of a business can be easy when you leave a trail for auditing. In this case, any unclear recordings or discrepancies can be easily traced back.
Track expenses – while leaving an audit trail, it is also important to track all records on a daily basis to ensure that all transactions are accounted correctly.
Set aside money for taxes and levies – in this way, all taxes are paid and penalties for delaying any dues will be avoided.
Keep all receipts – even if all transactions are accounted on your records, it is best to keep all receipts from all transactions for filing purposes in case these receipts are needed in the future.
Use a computer in compiling records – hard copies can be helpful but putting all records on a computer makes editing, reading and organizing much easier. Do not forget to backup all records for safety.
Teva Bookkeeping Solutions can provide professional bookkeeping services for your business. We strive to deliver accurate accounting practices in all areas of bookkeeping. Call us today for all your bookkeeping needs and we guarantee that your business is in good hands.