You probably see bookkeeping as a mundane task, but you cannot just ignore it if you want your small business to flourish. To make this dull and monotonous process more manageable, below are some tips you could follow to help simplify your bookkeeping tasks.
Set a time every week to manage your invoices.
Manage your invoices and update your records at a time of your choosing every week. If you do this regularly, in no time, you will see yourself finishing your tasks in just about 30 to 90 minutes, depending on the number of invoices you need to update. You can complete these even faster if you automate the process using an online accounting software provided by companies like ScaleFactor, Inc.
Reconcile your bank statements at least once a month.
Even if you evaluate your cash flow statements and bank statements on a regular basis, you still need to reconcile them and double check so that you could easily pinpoint discrepancies should they occur.
Review all accounts and follow-up on late invoices.
While most of your clients (hopefully) settle their invoice on time, there is no doubt you also have to deal with late-paying clients at some point. If you create reports on your receivables regularly, you would be able to spot late invoices, and then immediately send a follow-up letter to your client.
Reassess your cash flow statements.
You have to monitor your cash flow because it is constantly fluctuating. If you are using an online bookkeeping tool to automate this process, you could quickly generate and assess your cash flow statements and avoid fund charges because you could better look for financing options to cover your debts.
By following these simple guidelines, you can manage your finances better and make bookkeeping as easy as it can be. In turn, you increase your chances of meeting your long-term goals and improving profit.