Best-Kept Bookkeeping Secrets
Every bookkeeper has a few tricks and tips to get the job done. Here are four of the best-kept bookkeeping secrets that will make your job a whole lot easier.
1. When preparing your bookkeeping, make it a routine
Although day-to-day activities may keep you busy, remember to schedule bookkeeping into your monthly routine. Keeping a set of books up to date has many benefits, including:
- Providing timely data to use in decision making
- Ensuring deadlines are met to avoid penalties & interest
- Avoiding added stress caused by falling behind
2. When getting started, create a copy of your transactions
Many businesses have recurring transactions, such as software subscriptions or loan payments. To make life easier, create a copy of the transaction so that you have a starting point each time you need to post it. Most bookkeeping software offers a memorize or recurring transaction feature, allowing the account coding and memo description to stay consistent each month.
3. When in doubt, talk to your accountant
The relationship between a bookkeeper and an accountant should be one of mutual benefit. You don’t need to wait until yearend to call your accountant. By asking your questions on a timely basis, you can correctly post the complex transactions you don’t know what to do with. This in turn helps the accountant, as it makes the preparation of the tax return and financial statements much more efficient.
4. When year-end approaches, grab your Balance Sheet
Yearend is often dreaded by unprepared bookkeepers. However, keeping an organized filing system can make this task a breeze! The best approach is to print a balance sheet as of your year-end date. For every account, ask yourself:
- Is this account up to date?
- What documentation do I need to provide my Accountant to prove that the balance is correct?
Once those two questions are answered for each account, you’ll have the majority of the information your accountant will ask for.
Want more help with your bookkeeping? Avail CPA can help with that. Talk to us today to find out more.