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Bookkeeping 101: The Ultimate Guide to Help Small Business Owners with Financial Tracking

What emotion do you feel when you hear the word “bookkeeping?” Many small business owners cringe in frustration and anxiety, knowing that their bookkeeping system needs a little TLC. Whether you are having problems with your current system or you haven’t put in the effort to implement a bookkeeping system, right now is a great time to get started.

A few small steps can go a long way to help you take control of your business finances. You need to make sure that you have a good bookkeeping plan in place so that you always have a clear picture of the financial health of your company. For many small business owners, bookkeeping isn’t a priority. But, these tasks can be the make-it-or-break-it factors that will influence the future success of your company.

Are You in Over Your Head?

It is common for small business owners to feel like they are in over their heads with bookkeeping. Often, the strategy is to start with a DIY bookkeeping approach. Then, you likely ran into problems because the accounts didn’t balance or you couldn’t find the time to work on the books.

Some business owners put in the effort to hire a secretary or lower level employee to manage the financial details. This solution might work in some ways, but it is common for you to face errors and discrepancies if that person doesn’t have professional training in accounting. An internal employee handling the books will work until they quit or you must fire them, then you will be facing a gap in your financial management once again.

Instead of looking the other way because the books are too overwhelming, it is essential that you talk to an experienced team for help with a solid bookkeeping system. A little bit of work right now can go a long way to ensure that you are prepared for future growth and product development.

Step #1: Get Clear on Your Goals

The best way to start any system is to know WHY you want to make these changes. If you don’t understand the motivation behind a financial system, then it will be difficult to find the desire to spend the time and money on this effort. Understanding your business goals will help you identify the tools that will boost your success.

Most business owners will agree that their goal is focused on the future expansion and growth of the company. But, this growth isn’t possible if you don’t have the cash flow to support things as they are changing. So, you need to be sure that you create a financial picture that can expand to accommodate the size of the company that you are developing.

Step #2: Talk to the Pros

Once you identify your goals, the next step is to hire a professional who can offer personalized advice to set you up for success. If you bring in an employee, then you need to be sure that the person has hands-on experience with business accounting and bookkeeping. The problem is that hiring another employee can be an expensive choice that drains your bank account. An entry-level employee won’t have the experience to manage the books properly. But, it can cost quite a bit of money to bring in an educated professional.

Instead, consider the benefits of outsourcing your bookkeeping and accounting tasks. This solution will give you the skills that are needed to improve your business finances, without the excessive costs. Not only can you skip overhead costs related to office space, equipment, and benefits, but you can also pay a smaller amount since you don’t need full-time work.

Outsourced bookkeeping and accounting is a great solution to reduce your workload. You can focus your efforts on the tasks that will help with company growth while letting the professional handle the busy work and financial details.

Consider hiring an accounting team that specializes in small business services. Having previous experience working with other companies that are similar in size to your business is a critical factor. By understanding the laws, nuances, and accounting practices for small businesses, your accounting team will be able to implement a system that is already proven in other circumstances.

Step #3: Figure Out a System that Matches Your Preferences

Now that you have an experienced team to help with your financial tasks, the next step is to put together a system that will set you up for success. Your bookkeeping and accounting team can help you compare different types of financial software programs. These tools are essential to manage the numbers and give you access to important financial reports.

It is common for small businesses to use cloud-based software problems. These solutions will allow you to see the details from anywhere in the world. Often, there are smartphone apps that can make it easy to manage transactions and invoices on the go.

Additionally, a cloud-based software will give the outsourced bookkeeping team the ability to access information from any location. So, you don’t have to worry about having the bookkeepers in your office. They will take care of the busy work such as payroll, accounts payable, accounts receivable, cash flow, reconciliations, audits, and more.

Remember that every business is different. So, it makes sense that you should have someone who can design a program to meet the needs of your company. Consider the services that are necessary, and then talk to your accounting and bookkeeping team about the way they can help.

Step #4: Maintain Consistency with Daily, Weekly, Monthly, and Annual Tasks

Once you have a great bookkeeping system in place, it can be a breeze to stick to the system. But, you need to make sure that you are proactive to keep up with the ongoing tasks that build up to future success. Slacking on the paperwork and invoices can lead to a domino effect that creates a bigger mess.

Ongoing maintenance and care are the reasons why many people need the help of an experienced accounting team. As a business owner, you are already juggling too many responsibilities to keep up with the paperwork and transactions. Instead, let a team of experts manage the daily flow of transactions so that you can focus on other responsibilities.

Common tasks that need to be maintained include tracking expenses, filing tax paperwork, sending invoices, and cutting paychecks. These tasks will influence the cash flow for your company. For example, failing to keep up with tax payments and paperwork could result in fines and interest accrual later. Also, you need to be sure that you have money in the bank when these payments are due. An experienced accounting team can offer the services that you need so that you keep up with these important tasks.

Step #5: Re-Evaluate and Change if Needed

If you already have an accounting system in place, why should you re-evaluate your practices? It is essential to make sure that the system is still meeting the needs of your company. Even if things seem to be working, you won’t know the ways that you can optimize your finances unless you are working with an accounting professional.

Ongoing evaluations can be focused on reconciliations, system optimization, and preparing for future growth. The goal is to be proactive to prepare for the future, instead of reactively working through problems as they arise. By looking forward to seeing how things might play out, you can increase the likelihood that your business can grow and expand in a healthy way.

These steps can also help you see if something isn’t working well. There might be small nuances in your system that are hindering the growth of your company. In these situations, changes can be used to overcome the issues and help you prepare for the future.

So, you need to make sure that you have the support of an experienced accounting team throughout the year. Assistance with the setup of a good system is just the first step to help you achieve the business success that you desire. Choose an accounting team that will offer the ongoing support that is necessary to propel your small business forward!

Schedule a Consultation with the Experts

Here at Easier Accounting, we are working hard to provide the full range of financial services that are necessary for your small business. If you are looking for help with bookkeeping and accounting, then we are here to answer your questions and offer the assistance that you need! You are welcome to talk to our team to learn more about the ways that we can offer support for your company.

Our team is dedicated to your success. We understand the steps that need to be followed to create the best financial system for you. We will gladly schedule a time to talk to you about your accounting needs so that we can identify the services that will match your preferences.

If you are interested in learning more about how your business will benefit from these services, then we invite you to contact us today. At Easier Accounting, we are always available to help! Call (888) 620-0770