1. Go Paperless with a Cloud-Based Software

Having a good cloud-based bookkeeping software, like Xero or QuickBooks Online, will provide all the basic functions needed for bookkeeping. You can choose a plan that suits your needs best. With the cloud-based option, you can access your information from anywhere!

2. Keep Business and Personal Finances Separate

Never mix these two. It can make bookkeeping a much more difficult task. You will be more successful at keeping accurate records if you’re only handling one type of account.

3. Create a Budget

Having a budget allows you to see where your profits and expenses are and make better decisions for the future of your business. Determine your current costs and plan for major expenses. Review, at least quarterly, how your actual income and expenses are doing versus your budgeted numbers.

4. Keep an Eye on Your Bills

Late and unpaid bills always have a negative impact. Make sure to keep your bills organized and always pay on time. Enter your payment receipts into your software for extra documentation.

5. Reconcile Bank Accounts Monthly

Add your transactions to your software and keep daily records. Reconcile your bank accounts and daily records at least once a month to make sure the two line up correctly.

6. Set Up a Specific Time Weekly to Go Over Your Books

Set aside at least 30 minutes every week to go over finances. This way everything stays organized for the dreaded tax season and you will know exactly what is going on in your business.

7. Check in Monthly on Your Accounts Receivable

Having a client owe you money for services, especially at the end of the year, isn’t the same as having that money in your business account. Make sure you stay on top of your accounts receivable so that you are getting all the monthly payments you are owed. Regularly checking your accounts receivable will help you stay on top of past due payments.