Bookkeeping Best Practices for Your Small Business

Good bookkeeping is the foundation of a healthy business. It’s not just for tax time; it helps you make smarter business decisions year-round. Adopting these best practices will help you stay organized and efficient.

Here are five simple bookkeeping tips to follow:

• Separate Business and Personal Finances: This is the golden rule of small business bookkeeping. Use dedicated business bank accounts and credit cards to avoid confusion and make expense tracking and tax time much easier.

• Track Every Expense: From a coffee meeting to a new software subscription, every business-related expense should be recorded. This ensures you don't miss out on valuable tax deductions and have an accurate picture of your spending.

• Use Accounting Software: Ditch the manual spreadsheets. Modern accounting software can automate tasks like invoicing, expense tracking, and bank reconciliation, saving you time and reducing errors.

• Reconcile Your Accounts Monthly: This is a crucial step to catch any discrepancies, prevent fraud, and ensure your financial records match your bank statements. It gives you an accurate snapshot of your business's health.

• Provide your bookkeeper or accountant with timely responses to their questions

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