Accounting is both the most essential as well as the most hectic task for any business irrespective of the size. Suppose, you’re running a business that is doing great, touching the sky and growing like no end. Now if you don’t have any record of the accounting book of your business, how will you know how much you spend, how much you gained, and how much you will need to spend in the future?
These are some questions which need our attention. Isn’t it? Maintenance is very important whether you’re living in a home or running a business. Keeping a proper record of accounting is food for thought especially if you’re in the finance industry. Certainly, it will take a lot of your time to organize your accounts especially when your accounts are unorganized. So, if you’re someone who isn’t able to organize accounting records properly then you are at the right place.
Before I talk about the ways to keep up your accounting, first you need to know…
What should be there in your accounting records?
Make sure you record all the given points in your accounting book:
- – Sales & purchase invoice
- – Customer invoices
- – Business expenses
- – Bank statement
- – Supplier invoice
- – Business credit & debit card statement and receipts
- – Asset records
- – Business transactions
And the list goes on.
So, let’s move further and talk about the ways you can follow to keep your accounting records. Just keep reading below.
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Effective ways to keep a record of your business accounting
* Always keep a proper record of accounting documents
Whether you’re running a small business or large, you need to keep accounting records. Not only records are necessary to maintain, but they show and explain the business’s overall performance. So, in the accounting records of your business, you must record the assets & liabilities of the company. As a business, you must record many things such as:
- – Credit card statement
- – Business tax return documents
- – Invoices and receipts
- – Invoice for goods and services
- – All financial statements (profit & loss statement and balance sheet)
- – Record of stock purchases
…and so on.
* Keep business and personal account separate
Now there are many business owners who do a big mistake by operating a single account for their personal expenses as well as business expenses. This shouldn’t happen. Keeping personal and business accounts separate gives you a clear picture of your expenditure and revenues. Using a personal bank account for business can be cumbersome. In fact, having a personal business account will help you as well as your accountant to see how much money you have spent till now. Thereby, you should keep your personal and business finances separate.
* Hire a professional accountant
Another tip you can use for recording business finances is hiring a professional accountant. There are many people who always try to save money by any means. In reality, this turns out to be bad practice in the end. That’s where you need a professional accountant who can help you get minor detail about your business finances. Now, you’ll see many agencies providing you best accounting services but how genuine they’re how will you know? Therefore, Kayabooks’ accounting services help you maintain a perfect record of business accounts.
* Prepare financial statements
There are many types of financial statements a business prepares. So what financial statements are? Balance sheet, cash flow statement, income statement, etc. So, it is important to keep a record of financial statements on a quarterly and monthly basis. No doubt, these reports will help you analyze the health of your business from different angles. The balance sheet shows a statement of your business assets, liabilities, and equity moment in time. On the other hand, an income statement refers to income and statements that took place over a defined period. With a cash flow statement, you can look at the annual performance of your company’s finances.
Now that you have come to the end of this article, I believe you have thoroughly read what ways you can follow to manage your business finances and keep a good record of accounting books. Don’t forget that a proper accounting record adds glory to your business and also helps you grow your business in the long run. In case, you want to avail of accounting services, Kayabooks is here to serve you. You can get in touch with us if you got any queries to solve.