The concept of bookkeeping has evolved to maintain or keep track of the company expenses. Under the bookkeeping process, every transaction recorded so that it can help the accountants to analyse, decide, summarize the transactions, which will, in return, help the management to take feasible business decisions. However, it is to be noted that the management of bookkeeping records needs to be done appropriately so that it benefits your business in every possible way. This article holds 17 tips that will help you to manage your bookkeeping records in a professional way, and leverage your business growth.
1. Build an Actionable Bookkeeping Strategy
If you look at your bookkeeping records, you can fetch out numerous information, segregating them into different domains. By analysing these data, you can build up different bookkeeping strategy to ease out the recording and maintenance process. Moreover, multiple strategies can be built to improve business profits count.
2. Use the Bookkeeping Records to Track Performance
One of the most effective uses of the bookkeeping records is that you can use them to track your business performance. The tracking can be done on a yearly, quarterly, monthly or even weekly basis to reduce the unwanted expenses and increase the business profits by building an effective business plan.
3. Immediate Access to Financial Data
Maintaining the bookkeeping records serves out to be a feasible option when it comes to immediate access. The top-level management might need financial data at any point of time to take business decisions, or financial planning and budgeting. Bookkeeping helps a lot in providing access to it immediately.
4. Schedule a Monthly Bookkeeping Time
A business might end up dealing with multiple business transactions in a single day. Recording every single transaction each time doesn’t seem to be a feasible option. Instead, one can fix a specific date of a month and then can record all the transactions accordingly. Preferably, you can select a date towards the end of the month, as you will be have the complete records for the entire month.
5. Figure out Possibilities to Decrease Taxes
One of the phases that every business needs to go through is the filing of taxes. Tax Registration or VAT Return Filing has to be carried out for any business. A bookkeeper and accountant must try to figure out the possible ways to decrease the taxes to be paid. Such clarity and research are only possible for your business when you have highly-experienced professionals by your side.
6. Daily Transaction Monitoring
Monitoring business transactions daily is an important aspect of bookkeeping. It needs to be clearly defined that a bookkeeper can’t miss out to monitor any transaction taking place at any point of time during the business hours. Negligence at any point in the recording can lead to business loss.
7. Separate Personal and Professional Finances
While maintaining the bookkeeping records, it is advised to maintain different books for personal and professional finances. Having separate books helps you to identify the finances that you hold in each domain. Moreover, it also helps in avoiding confusions that might occur if you maintain them in the same book of records.
8. Track Financial Data Every Month
Tracking financial records is a vital task for any business. However, tracking the data every month serves out to be more fruitful as you end up having a source for comparison. Since bookkeeping records every business income and expense, so it becomes easier to track the figures every month and remove unwanted expenses.
9. Choose Subject-Matter Experts
An accountant is highly responsible to analyse the records that have been covered in the bookkeeping stage. The accountant deals with multiple tasks of refining and analysing the data, preparation of balance sheet and other documents which are essential for the business owners and stakeholders to know. Hiring an expert can ease the process as they are well-equipped with the accounting techniques that need to be implemented and work on it accordingly.
10. Hire Professional Payroll Service
Paying the employees on time is a perfect choice to keep them motivated, whereas a delay in payments might demotivate them. Since payroll deals with the entire Employee Payment System, so it has to be maintained adequately. Hiring a helping hand for its maintenance or outsourcing the payroll service to payroll experts turns out to be the best option as it will be handled professionally.
11. Rectify the Errors at the Earliest
Once you or your bookkeeper have identified an error in the bookkeeping records, it serves to be utmost important to rectify the errors as soon as possible. Delaying the rectification might end up showing fault results which will have adverse effects on your company at a later stage.
12. Invest in Quality Document Management Solution
Being a company owner, you might have invested in multiple products or services to stabilize your company. In this investment process, an important aspect that you need to cover the Quality Document Management System. Maintaining your company documents is an essential part of your business, and investing in its technology will boost your business growth.
13. Consider Managerial Accounting as an Important Aspect
Similar to that of financial, cost or forensic accounting, the managerial accounting also has its role to play in the development of your business. The important aspect of managerial accounting is that it deals with the analysis of the business documents like Balance Sheet, Profit and Loss Statement etc. Being a business owner, it is important that you should have a clear idea of managerial accounting and its contribution to growing your business.
14. Hire a Reliable Bookkeeper
Trying to manage every possible domain in-house is not advisable. You must be an exceptional planner, but maintaining or recording business transactions may not be your cup of tea. To bring a continuous flow in the bookkeeping domain, which is essential, it is recommended to hire subject-matter experts who have an in-depth knowledge regarding bookkeeping and can carry on the process in a hassle-free way.
15. Infuse Accounting Software
Technology is the key that drives the entire business world. No matter what’s the size of your business, you need to make sure that in order to maintain the book of accounts properly, you infuse the usage of correct accounting software, which are easily available. This software will help your business to keep a digital record of your business transaction and secures the data from being lost.
16. Keep Your Records Organized
Streamlining your records is a secret to business success. Once you have your files organized, you tend to go under less confusion or loss of valuable information. Moreover, organized records will help you to plan your business growth accordingly, and thus, it turns out to be one of the most significant contributions of a bookkeeper.
17. Maintain Detailed Inventory Records
You need to make sure that the inventory details are maintained accordingly so as to avoid any confusion in the count. Every information regarding the inventory of the stock serves out to be essential information for the bookkeeper to maintain the bookkeeping records.
Thus, we can now conclude that bookkeeping plays a vital role in achieving organizational success. Irrespective of the business size and nature, the bookkeeping domain has its essential role to play in every ground. To maintain the process professionally, business owners and managers prefer to hire experts. JAXA Chartered Accountant is one of the best choices when it comes to the selection of a helping hand. Our accounts and bookkeeping experts are well-versed with the UAE Accounting laws and can help you in streamlining your bookkeeping processes. To have a word with our experts, contact us today - we’d be glad to assist.