Small business owners spend a significant amount of time recording and organizing their financial transactions. These transactions include accounts receivable, accounts payable, payroll, invoices, expense receipts and more. While bookkeeping can be time-consuming, it is vital to the operation of your business. Here are a few tips to ensure healthy finances for your business.

1. Track Expenses – Accurately recording and organizing expenses is essential to know how well your business is performing. It enables you to make timely business decisions in order to reach your goals. Small businesses should consider apps to track and log business expenses. Apps such as Quickbooks have features such as:

• Receipt data capture via smartphone camera – there is no longer a need to hold onto paper receipts that might otherwise get lost and
• GPS tracking using the smartphone to track business miles traveled

2. Efficient Invoicing – Invoices ensure you get paid in a timely manner as well as track terms of service. Your invoices should include details of:

• Contact information
• List of products or services provided
• Itemized list of total amount due
• Payment terms if a discount is given

Providing the invoice electronically will create a record or paper-trail of the sale so there is no need to keep the paper records. Creating an organized filing system of sales made will provide a helpful backup if needed.

3. Choice of Accounting Software – 

As a business owner, you are responsible for compiling financial records. This can be a manual, time-consuming process, however. A bookkeeping software, along with a bookkeeping professional can help relieve some time and stress off of these weekly duties. The electronic nature of a bookkeeping software means results and reports are available real-time; this means you can quickly access the performance of your business at any time.Software like Quickbooks Online allows you to print and/or email invoices or purchase orders. A weekly, monthly, and quarterly review of transactions entered into this software will ensure your financial information is complete and accurate.

If you would like to discuss implementing or improving your bookkeeping process for your business, reach out to Blue Heron Bookkeeping for a free consultation.