Proper bookkeeping is crucial for any small business, ensuring your records are up-to-date and giving you a clear perspective on your finances. However, as your company grows, keeping track of the books can quickly overwhelm even the most motivated business owners. Below are a few steps to follow and mistakes to avoid when it comes to maintaining your records.

Do:

Reconcile your account statements monthly.

Technology has made keeping track of your bank accounts easier than ever, but transactions may not appear right away. On a monthly basis, compare your bank statements to your own records, looking for any discrepancies and taking note of any transactions that haven’t posted yet.

Utilize bookkeeping software.

Many companies offer powerful software designed to save time while increasing the accuracy of your books. For instance, some programs will sync with your business accounts, automatically enter purchases, and generate invoices at the push of a button.

Don’t:

Mix business and personal finances.

Letting your personal finances mingle with your business accounts invites mistakes and could attract unwelcome attention from the IRS. Even if you’re a sole proprietor or an independent contractor, always maintain separate accounts for your personal and business income.

Handle it all yourself.

Bookkeeping is time-consuming and complex, even for relatively small businesses. Even if you have accounting software, sometimes a human hand or eye is needed to pick up errors, audit findings, and to prioritize certain goals, like looking for every applicable tax deduction. Turning to a professional CPA means that not only can you rely on their in-depth knowledge, but free up some of your own time to focus on other aspects of the company.

From their offices in Texarkana, Young Hoy & Burnett has been providing high-quality, customizable services to businesses throughout the Four States area for over forty years. Whether you need someone to take over your bookkeeping or need a full-service accountant, their team will provide you with the dependable results and peace of mind you’re looking for. Visit their website for a closer look at their services or call (903) 794-2211 now to make an appointment.