5 Things You Must Do with Your Bookkeeping

Managing personal finances is one thing, but when it comes to managing the finances and bookkeeping for business purposes, there is much more that goes into it. The stakes are also much higher, as you have employees and customers relying on you. To help, we have put together 5 things you should make sure you are doing with your business’ bookkeeping

First, keep personal and business finances completely separate. Mixing finances can quickly cause cash flow issues, along with complicating tax filing and audits.

Second, use an accounting software. It is imperative to keep a thorough record of all business expenses, but that can be very tedious and time-consuming if you are not using an accounting software such as QuickBooks. The burden of bookkeeping only gets bigger as your business grows.

Third, evaluate financial data monthly. By looking at financial statements, management reports, etc. each month, you are going to have a better understanding of what drives your business and profitability. This will help you with making future financial decisions.

Fourth, keep detailed and organized records. Filing taxes doesn’t mean you can just throw out the old records and start new. There are guidelines to be followed when it comes to the length of time your business is expected to maintain copies of tax returns, records, etc.

Finally, plan for taxes throughout the year. Make sure that you are keeping in touch with your tax accountant regularly to make sure that you are doing everything you need to in regard to maintaining records and tracking expenses.