Dear Reader – Here are 10 very quick tips on how to be efficient at bookkeeping. If you liked these tips, we encourage you to share them with your network.
1. Have organized receipts put neatly into a folder organized by expense.
2. Register for an HST Number – Work in your benefit if you have to spend a lot on capital. Remit Quarterly vs. Yearly.
3. Monthly Review – Set time each month reviewing your financials to ensure that your business is on the right track.
4. Avoid the CRA – ensure you are accurately recording everything, the last thing you want is the CRA to come after you.
5. Use it as a financial tool to see where you can find improvements in your business. It’s more than recording numbers, it’s all about process efficiencies.
6. If you don’t know how to keep track of your receipts, don’t do it yourself. Don’t make it harder for the accountant/bookkeeper to audit your work. If you can’t do it, outsource.
7. You can write off almost anything related to your business if it helps you generate income. Depending on the nature of your business, almost everything is an expense!
8. Look more professional with a software that is designed for bookkeeping when issuing invoice/receipts. Your first impression is your last impression, get Quickbooks, Wave, Xero or another software to manage your books.
9. If you don’t have time to do it, hire a professional. Save time and get a professional to look after your books so you can focus on sales.
10. Look at your bank reconciliation’s monthly to ensure you are in line with what the bank is providing you. Any NSF cheques, or deposits not hitting the bank should be accounted for. Don’t assume everything is okay and there is no fraud.