You’ve worked hard to bring your company to life. However, as a new business owner, your responsibilities can become overwhelming. Not only do you have to hire employees, manage production and the efficiency of the operation, and create strategies for growth, but you also have to mind the bookkeeping. When you’re just starting out, all those records and files can seem confusing. To help you out, here are a few do’s and don’ts of maintaining your books.

Do:

Invest in quality accounting software.

You don’t need to keep records and handle business accounting on physical ledger books. In fact, doing so makes the process more difficult. By investing in quality software and learning how to use it efficiently, you’ll save time, stay organized, and be ready to file taxes on time every quarter.

Analyze financial statements.

Earnings and expenditures determine your operating budget. Every month or so, take a look at the company’s financial statements and see where the money is going, what areas can be cut back, and where the budget can be improved.

Reconcile accounts.

Every month, check the bank statements against the expenditures and profits logged in the software. Doing so will allow the management team to identify possible missed payments, fraudulent charges, and other errors that impact the bottom line.

Don’t:

Fail to create checks & balances to prevent theft.

Every dollar that goes missing, either as products or earnings, results in lost profits for the company. Prevent theft and fraud by creating a system of checks and balances within the company. Monitor expenditures and ensure that those with access to company funds are using them appropriately through accurate record keeping. 

Wait to address discrepancies with vendors & customers.

Waiting to address problems with vendors and customers is the easiest way to guarantee lost profits. Instead of putting off a difficult conversation or delaying to see if the situation will resolve itself, be proactive and discuss any discrepancies as soon as you discover them.

Struggle to manage the bookkeeping alone.

As the business grows, the bookkeeping will become more complex. Instead of struggling to handle the job on your own, hire an experienced accountant or CPA to help. They’ll streamline the record keeping process and ensure everything is ready for your tax return.

Looking for help with your business’s bookkeeping? Contact Selph and Friday, CPA, in Texarkana, TX. Their experienced team understands the unique challenges startups face and will help you stay on top of your records year-round. Learn more about their services online, including IRS problems, and call (903) 792-0281 today to schedule a consultation.