The owners of failed businesses often have something in common. Their mutual struggle lies in the fact that they aren’t sure how to handle the bookkeeping aspect of owning a business.
It’s not the most enjoyable part of owning a business, but money was probably why you started the business in the first place! Dealing with everyday accounting tasks can be pivotal to the survival of a small business.
These 9 bookkeeping tips will help to ensure your business stays in the black:
1. It’s crucial to have an actual record-keeping system in place. A shoebox approach won’t work for long.
2. Be prompt when invoicing customers. Most people sit on bills as long as they can before paying. Let them start sitting on your invoice sooner rather than later. Get invoices to your customers as soon as possible.
3. Deposit checks weekly, if not more frequently. Checks that are stuck in a drawer get lost. Also, you want to cash the check while the funds are still there. Imagine having to go back to your customer with an expired check to ask for a new one. You’ll likely feel humiliated by your lack of professionalism.
4. Track which invoices have been paid and which ones haven’t. Usually, the whole point of owning a side business is to get paid.
5. Follow up on invoices that haven’t been paid. Some customers just require a friendly reminder that their bill is due.
6. Be accurate. Inaccurate books create headaches that can take a long time to rectify.
7. Bookkeeping is a priority. Getting paid and controlling your expenses is extremely important. Let’s not drop the ball 5-yards from the end zone.
8. Create an atmosphere that discourages employees from stealing from you. If you take yourself completely out of the loop, you’re asking for big trouble. Make it a point to know about every dollar that is flowing in and out of your company.
9. Audit yourself. Ideally, you could afford to bring in someone else to look over your operation, but if your business is small enough, you can do it yourself.
These tips will eliminate and discourage the most common bookkeeping mistakes made in small businesses. Try them out with your side business to ensure continued success!
Thank you for reading this blog post #MedicalMoguls. If you want to chat with me 1-on-1, schedule a FREE appointment here www.MedicalMoguls.com/Freedom. Until next time, it’s Dr. Drai.