Bookkeeping For Your Small Business
Posted On: 28/06/21 - 0

Bookkeeping For Your Small Business

Bookkeeping For Business

Managing and owning a small business requires handling multiple responsibilities. It may include servicing your clients, managing your business, and most importantly manage the bookkeeping for your small business. The services/products offered at your small business generates income from your business. Whether you own a spa, mechanics shop, bakery, etc.  your primary income comes from the services/products that you render.

To keep track of all the income and expenses of your business, it is crucial to have an up-to-date bookkeeping method. But don’t worry! Padgett Business Services N.W. has outlined five bookkeeping tips to help you track your finances and stabilize your business.

Prepare Before You Start

Be prepared before you start with your bookkeeping. Financial analysis is one of the big things to provide you with the insight of your business finances. If you are new to bookkeeping, we will guide you with the following steps.

  • Analyze your cash flow.
  • Take an honest look at how your business is functioning. This includes your spending and earnings, of course.
  • Break the numbers down in multiple ways to get more insight into your business.
  • List your monthly expenses: Rent, utilities, payroll, insurance, inventories, loan payments, taxes, and other regular expenses.
  • Write the intermittent expenses: Equipment purchases, annual training classes, or your yearly holiday party.
  • Estimate your monthly income.
  • Run the numbers and calculate the financial status of your business.

Being proactive with your finances will give you fewer headaches and obstacles to deal with later.

Establish Your Ledger

Ledger is a book containing accounts to which debit and credits are posted from the original entry. Whether you prefer to set up by ledger, Excel spreadsheet, bookkeeping software, or by hand while documenting your current balances, record the credit and debit side respectively. Compare the book with the bank statements. Examine the expenses that are holding you back and opportunities that can help your business to move forward.

Track All Your Expenses

Keeping track of every receipt, slip, or invoice can be a daunting task. Record all the minor purchases also. Be sure to separate credit and debit cards and record the smallest of purchases. Have separate credit and debit cards for business and personal accounts. Differentiating between personal and business expenses can make it a lot easier for you to track the expenses. In addition to this, it will help keep your costs down if you choose to use a service provider.

Stay Current and Up-to-date

Stay disciplined with your bookkeeping system. Setup a weekly routine of documenting all income and expenses on a specific day. Don’t let the month go without tracking the expenses. Make it a habit of monitoring the expenses regularly and do not let it pass by for months without tracking.

Outsource to Bookkeeping Experts

If it is too overwhelming for you to set up, operate, and manage accounting software in your business, hire an accounting firm. An accounting firm such as Padgett Business Services N.W.. can help you to support your business by handling the bookkeeping responsibilities. Hiring a bookkeeping firm has obvious benefits such as:

  • Expert advice on financial situations
  • Acts like a financial watchdog
  • Looks for cost-saving opportunities
  • Identifies financial trends that need attention

If you are looking for a bookkeeping or accounting service, call us!

An external bookkeeper can offer crucial insight into your business. We at Padgett Business Services N.W. have extensive experience providing accounting, bookkeeping and business development coaching to small businesses. We believe in providing the best possible services for our clients so that you can concentrate on your bottom line.

12203-107 Avenue.
Edmonton, Alberta.
T5M 1Y9

Call us:
780.482.7297