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When you run a business, you have to maintain the books. Without good bookkeeping you won’t be aware of the financial health of your business, you will be unaware of the taxes owed and you will break compliance rules.
Here’s how you can create a great bookkeeping system.
Despite the digital age, a lot of paperwork does still occur. You need to ensure that you file your paper receipts, bills, and bank statement are filed in the folders.
If you want to be able to find your documents easily later on, you will label your folders. There are a number of ways you can label your folders. You can do it on the basis of financial account, status of the payment, or income-expense.
Conducting your bookkeeping processes in an order helps.
Ideally, you should create copies of all your financial documents. However, today, most opt to digitize everything. In such a case, ensure you have a backup of all the information. Don’t keep all your information locally stored. Storing on a safe and secure cloud server is a must.
Use a Bookkeeping Software
There are many bookkeeping applications available. Many of them are free or affordable. Bookkeeping applications offer you a structured and easy way to maintain your books and accounts.
From tracking expenses, creating estimates, synchronizing mail invoices, to tax assistance, they come with tons of features.
Single or Double Entry
These are the two most common forms of bookkeeping.
If your business is a small one and does not tackle large volume transactions, then single entry might be right for you.
Ensure that you utilize your bookkeeping system and keep updating your books. It’s best that you set weekly or monthly deadlines.
Consult with a Professional
It is always best to consult with a professional accountant. Making a mistake in bookkeeping can have serious repercussion. You want to ensure that your bookkeeping system is foolproof.
When you face trouble with setting up your bookkeeping system, reach out to ATS Accounting. We’ll be more than happy to help out.