I understand that many start ups will not hire a Bookkeeper right away. However, good Bookkeeping is an integral part of running any business. You need to know your numbers in order to make the changes needed to get you where you want to go. You do not want to find out 12 months from now that you were not making money.
Procrastination is a big factor. “I will update my books tomorrow or next week” and this day never comes. Be consistent and choose a day of the week to update it no matter what. How many times have I heard of new business owners who would spend days trying to update and reconcile their books at year- end? Not a fun task. Hopefully they were able to find all receipts to claim the expenses they incurred to earn income.
Bookkeeping is very simple at the end of the day. You just need to:
- Set up your books – set up chart of accounts
- Have a Bookkeeping system – set up processes for day to day filing
- Data entry – the best is to be done on a daily or weekly basis depending on the size of your business. Reality is that other important tasks get on the way. I suggest you choose the first day of the month to update your books.
- Analysis – Know your numbers. At the end of the month you can have an idea of how your business is doing and make any corrections where needed.
Please follow my blogs and I am going to share great ideas that can be implemented right away to help you thrive.
Make sure you update your books accurately and on time. Failure to do will result in thousands of dollars in penalties, interest and back taxes.
I wish you all the best on your new endeavour!