Keeping your books in order is key to running a successful business. Here are 10 top bookkeeping tips for small businesses. American Funding provides bookkeeping services and can help with many of these tasks.
Keep separate records for business and personal finances – Keeping business finances separate from your personal finances is essential. Keeping business and person separate makes it easier to keep records, help with organization and reduce time spent on the task. If you haven’t got separate accounts, do it now.
Create a major expense fund – Setting up a pool of cash for major expenses makes sense. The business should be able to cover smaller expenses such as office supplies, and maintenance expenses, but also major expenses like repairs and maintenance without having to dip into daily cash flow.
Create a tax fund – Similarly, creating a separate fund for your tax payments also makes sense. Putting money into a dedicated tax account on a regular basis, based on forecasts, benchmarking and trends, will prove invaluable.
Watch the accounts receivable – Outstanding bills can be the end of a business, particularly small ones. Money that is owed is not in the cash flow. Ensuring that money comes in on time and regularly can help with planning and growth hugely.