Bookkeeping is the backbone of every successful business. Mastering your bookkeeping processes means you will have a clearer picture of the financial health of your business. This is key in order to grow and scale your business. 

So, what steps can you take to make sure you’ve got your finances in order?

Maintain accurate records

It’s a legality that all businesses must record all of their financial transactions. What’s really important is that they are accurate and that your bookkeeping is done consistently. Using the right software is essential as this will eliminate human error. When you keep on top of your bookkeeping you have access to real-time accurate data so that you can make better business decisions.

Keep business and personal transactions separate

I know I say this a lot, but I can’t stress the importance of keeping your personal and business transactions separate. Having them all come out of one account is incredibly messy and you will lose track of what’s business related. If you’re a limited company it’s actually a legal obligation to have a business account, so make sure you are compliant! 

Reconcile consistently

If you’re doing your own bookkeeping then I suggest reconciling your bank account at least once a month, once a week is perfect if you can manage it. This means that the data you’re looking at is accurate and any reports you run are a true reflection of your financial status. If you don’t keep on top of your bookkeeping it will start to get out of control and the more messy it becomes the more you’ll keep putting off tackling it!

Monitor expenses

To ensure you’re paying as less tax as possible you need to ensure you’re claiming for every expense leaving your account. This means you have to keep copies of all receipts and invoices. With the amazing technology available such as Dext you don’t need to keep hard copies. If you take a picture as you spend on your mobile app then you’ll never lose a receipt again!

It’s also handy to run reports in your accounting software so that you know how much you’re spending and how much is really essential. This is a great way to improve your cash flow health.

If you’re wanting to grow your business then the best thing you can do is to outsource your bookkeeping. It’s a job you shouldn’t be doing as it’s not your area of expertise. Anything which you can outsource you should, so that it frees up time for you to concentrate on what you’re good at. Hiring a bookkeeper ensures compliance and gives you access to insightful reports which will help you to scale your business.

Outsourcing your bookkeeping doesn’t have to be a daunting prospect, let’s have a chat today!