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What are some quick bookkeeping tips that you have for SMBs?
What are 5-10 bookkeeping tips that you would give to small businesses?
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3 Answers
I don't have 5 to 10 tips just my top two tips:
(1) Get training on whatever accounting software you are using. Today's SMB accounting software has amazing capabilities for both day-to-day transactional entry and periodic reporting. But if you don't spend the time and effort in training most of the time saving features will not be used. You need to get training.
(2) Stay current. You need to enter transactions on a daily basis. Now I'm not suggesting performing every task daily such as writing checks but you need keep current. There are zero advantages to always being behind in your bookkeeping.
If you follow these two tips you will be far ahead of most SMB businesses and will be able to get current reports for managing your business.
*stay on top of it
*get educated or pay someone that is
*don't try to do it all at year end
*double check your work!Pull reports often to make sure things are in the right spot
*get a good software but make sure you know how to use it
*keep your hard copy filing organized and develope a system that you can impliment for both your filing caninet and computer
*always back up your data!
*Do it right once and if you have an issue fix it now
* always sign your own checks
* It is a job in it's self so give it the attention it needs
Like Douglas said, staying current is most important. Here are specifics:
-1- Make sure AP/vendor invoices entered daily ... ditto for credit card transactions.
-2- Reconcile cash every single day ... doesn't matter if you're a mom and pop or a Global 1000 firm, this is critical.
-3- Stay on top of AR ... weekly call past-due customers.
-4- Watch inventory (if applicable). Use a simple analysis showing purchases to consumption weekly and adjust purchasing patterns as needed. This one can get complicated in retail-oriented businesses, and sometimes an expert is needed to help.
-5- Do a rolling 12-week cash flow forecast each Monday or Friday. Actually, when firms start doing it, it gets easier.
-6- Create a month-end checklist to help ensure financials are completed by the 3rd day of the month. Regardless of the size, there is no excuse in getting reporting completed after the 5th day of the month ... that's way too long.
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