Here are some money-saving tips from real businesses that are succeeding in tough economic situations. Only real people, real businesses, and real ideas and tips will help you cut costs, lower your overhead, and still reach your target market and grow in your business.
1. Keeping business and personal banking separate
It is necessary to make it a priority for all business owners to open a new bank account for their business, preferably an account with online access, to keep all business funds separate from personal funds. Processing the transactions for your personal accounts within the bookkeeping of your business is waste of time.
2. Choosing the right bookkeeping software for business
You have the right to bookkeeping software according to the requirements of your business, as many software providers offer different levels, such as…
- Cash books
- Account payables and Account receivables
- Ledger and cash books
- Bank Reconciliations
Here is a comparison of popular bookkeeping software, QuickBooks and Xero. Most of the bookkeeping software modules mentioned above provide the ability to export the reports to excel for:
- Easy customization and manipulation
- Producing charts for reference
- Combining different aspects from one period to the next
3. Organizing all the business documents
Keeping all the documents for all business transactions is the main thing and it is called accounting source documents. This is to be done for…
- Easy tracking for future needs that might pop up
- They are the proof for what occurs in the future.
The only way to keep documents or records like invoices, receipts, wage records, etc. is to have a very well-organized filing system.
There are three basic filling options available
- Paper system
- Electronic system on your computer hard drive
- Online document storage.
4. Understanding monthly bookkeeping reports
Surprisingly, many business owners have no idea that what they are doing is not working until it is too late and suddenly find themselves with huge debts and no money. You can avoid this scenario by keeping your books updated and producing reports at least once a month by professional bookkeepers. Also, if you are going to run your own business you cannot ignore these aspects.
The important reports to start with are the balance sheet and the income statement of the business.
5. Identifying business vs personal expenses
Business owners need to know and identify the type of expenses that can be claimed against the profits to reduce tax and what cannot be.
An expense is directly related to all the business operations and to producing income.
An expense that is for the owner’s personal account will come under personal expenses. Mixing both personal and business does not mean that it is a full claim for the business. Do not forget to let your bookkeeper know about all these expenses and keep all the receipts and invoices for them.
6. Outsourcing your bookkeeping needs
Employees are essential to get our work done, but the costs from salaries to office space can be the biggest task for a small business’s budget. You can choose remote bookkeeping service providers, who can handle your books and keep them updated.
If you are a business owner, you have many tasks to complete in a day. You may find difficulty in doing the bookkeeping or you may not have any time to complete the bookkeeping tasks, for this, you can outsource your books to a professional bookkeeper online. You can enjoy the following benefits by outsourcing your books…
Accuracy: you will get the necessary professional work done on your business books, so you can be confident they are completely accurate.
Cost Effective: it is cost-effective because here you will pay on an hourly basis or for a couple of hours, instead of paying a regular wage.
A professional bookkeeper takes 2 to 4 hours to process one month’s bank transactions, finalize reconciliation and produce a set of reports. You have the option to outsource as little or as much as you want to be done.
The benefits you can get by hiring an experienced professional bookkeeper are that they are generally able to give business advice and uphold your day-to-day bookkeeping needs like:
- Updating and searching for new software
- Help you to prepare your annual budget and cash flow reports
If you are planning to start a new business, the above tips may help you to reach your financial goals and to keep your business growing. Remote books online will provide all your bookkeeping needs remotely. Get a free quote now.