4 Practices to avoid bookkeeping mistakes:
Bookkeeping mistakes are bound to happen since small startup owners often do their own accounting. Programmed bookkeeping systems simplify the task of organizing and summarizing all transactions for reports. These programs do cut down on costs and help business owners to meet the standards necessary for professional accounting. Not all business owners in Oregon are certified accountants but, bookkeeping can be learned by anybody. There are just a few business practices to keep in mind:
Bookkeeping should be taken seriously
Serious practices for bookkeeping means having to record all transactions correctly and habitually when the transaction occurs or record all before the day ends. Financial literacy is a must for the job. Spending your time to study on accounting will give you the necessary confidence to do the books. QuickBooks itself also has resources to help you with the basics of accounting. If time is a problem for bookkeeping on your own, outsourcing the job to a professional and certified bookkeeper in Oregon city will help you greatly focus more on your business.
Keeping all of the relevant transaction receipts
It is very important to keep all the corresponding receipts for transactions in your record to avoid any hassles at tax season. That will ensure you have the necessary documents to clear any records that are in question. Bigger bills such as the utility bills, supplier invoices and etc. may have easier accessibility since they send out emails, but it is also important to keep receipts for activities like a business lunch, transportation, and any supplies for the business. Small transactions do add up. Having them summarized will give you ease once tax season comes.
You may compile receipts in albums with notes for easy referencing. The best option these days is to have QuickBooks set up with apps to help digitize receipts using a smartphone or office scanner.
Constructing a systematic Bookkeeping system
Having bookkeeping software installed already decreases a big chunk of the workload. A system that makes recording easier but also double checks data ensure that bookkeeping mistakes will be caught. An effective way of doing this is having a checklist to track all tasks and its completion. The checklist should include recording all transactions, balancing the expenses and revenue and lastly taking notes about the transaction.
Having backups is important to save your bookkeeping data in the event of having data corrupted or stolen. QuickBooks does automatically back up your data to reduce any risks of data corruption or loss.
Keep personal and business spendings separate
Using your personal debit or credit card for any business transaction is asking for trouble when keeping the books. It is highly important to keep personal and business accounts separate. This will make it easier for you to write off expenses at tax time. Transferring personal funds to your business account will help you clarify where the funds originated. Banks these days offer not only personal and business savings and checking accounts but also business credit cards.
Having good financial practices helps any business owner avoid costly or damaging bookkeeping mistakes. Having clean and accurate records with backups secures your business and gives you the necessary visibility to plan out your business’ growth.
How Plus Minus Bookkeeping Services Can Help?
We are the best bookkeeping services company in Oregon city. We are also Intuit QuickBooks certified pro advisors. Bookkeeping is a very important task for any business but it also eats up a lot of precious time. We provide quality service for your accounting needs in the city of Oregon so that you can focus your time and better energy to make your business.
Have your mind at ease as we are always up to date and compliant with the IRS laws. You do not have to worry about any bookkeeping mistakes as we always double check your books and you will be free to view them at your leisure.
You may call us at (503) 594-2895 to learn more and set a meeting.